|Make Money, E-commerce and Credit Card Processing Information|
Distinguishing Features of E-Commerce
E-commerce offers customers the chance to eliminate many stages in the sales/distribution chain. The mark-ups that occur between manufacturers, wholesalers, distributors, retailers and consumers can add the cost of goods purchased by consumers. In contrast, when consumers deal directly with manufacturers on the internet, the process whereby intermediaries between the manufacturer and the final consumer are eliminated from the supply chain is known as "disintermediation".
E-commerce differs from mail order and telephone solicitation, the two most traditional forms of business using remote sellers, because these involve the delivery of goods by common carrier to and from a specific physical location. In short, there is still a physical delivery of property from an identifiable seller to an identifiable buyer. E-commerce presents an unprecedented challenge to federal and state tax authorities. States and local jurisdictions have wrestled with the issue of collecting taxes from out-of-state mail order sellers and telephone solicitors for decades; e-commerce enables almost any business large or small to sell to customers in different states and countries.
Out-of-state vendors engaged in e-commerce do not have an obligation to collect sales taxes if traditional remote sellers, such as mail-order and telephone solicitation vendors, do not collect sales taxes. Sales tax cannot be levied on a transaction just because the purchaser uses e-commerce to access the seller's computer to acquire property, goods or service. Also, states cannot use an "agency nexus" theory to claim that a purchaser's ISP is an in-state agent for the seller.
Commerce Defies Traditional Tax Jurisdictions
Using the internet, a company can, in theory, move its e-commerce business to a tax-haven country and conduct e-commerce outside the jurisdiction of any country that would otherwise tax the transaction.
Also, because of the speed in which transactions occur and the frequent absence of a traditional paper trail, it will be very difficult, if not impossible, to apply traditional notions of tax jurisdiction. This is especially true with intangible property transmitted by computer such as software, digital music or electronic books and services.
While governments which depend on an income tax might have difficulty taxing e-commerce, states and local jurisdictions that rely on sales and property taxes to fund their operations could be in deeper trouble .
Lack of a Paper Trail
Unless a tangible product is delivered by common carrier, it is impossible for a taxing jurisdiction to determine that an e-commerce transaction occurred. For instance, if a consumer downloaded a computer game from a computer located in a foreign country for $19.95, paying by credit card, how would a taxing jurisdiction discover that such a transaction occurred? How would it determine the physical location of the seller? What if the purchaser had an internet service provider (ISP) in a foreign country as well?
Transmitting Property from Tangible to Intangible
Consider the following issues: Would the receipt of a computer game in electronic form convert the game into a non-taxable intangible item, whereas the purchase of the same game at a local computer store would be taxable because it is a tangible product? Also, if a newspaper has an exemption from sales tax will a newspaper that is downloaded in electronic form receives the same exemption? If not, would the tax levied on the electronic version of the newspaper be a discriminatory tax in violation of the commerce clause?
Electronic money is a type of debit card similar to a telephone calling card where the card itself keeps track of the remaining balance, rather than a third party bank. This could emerge as the preferred medium of exchange for e-commerce. E-cash will have the same anonymity as cash does in the current "underground" economy. Use of e-cash will further frustrate states and local jurisdictions on taxing e-commerce.
Multiple taxes on the same transaction or service, either in the same taxing jurisdiction or two or more taxing jurisdictions, are prohibited. This could occur if a state-taxed internet access services as telecommunications and then taxed located telephone services as well. Unless a credit is given to eliminate any double-taxation, such a tax would violate the prohibition against multiple taxes.
The writer is an advocate of High Court and practicing immigration and corporate laws in Pakistan since September 2001. He is a self employed and pioneer in research on electronic commerce taxation in Pakistan. His articles were published widely in the critical areas of cyber crimes, electronic commerce, e-taxation and various other topics. He wrote LL.M thesis on titled "Legislation of electronic commerce taxation in Pakistan" in which he provided comprehensive legal proposals for statutory reconstruction of tax laws for purpose of imposition of taxation on e-business in Pakistan. Currently he is conducting is research on topic 'Electronic commerce taxation: emerging legal issues of digital evidence'.
Author can be contacted by email@example.com.
How To Start An Internet Business ? Site Layout
The fourth step of how to start an Internet business involves the layout of your site. When organizing it, two audiences must be considered. Obviously, visitors to the site are the first audience. You must also keep in mind the second audience, search engine robots. Both audiences are extremely important and, fortunately, both want the same thing.
How To Implement E-Business Solutions Successfully
Pitfalls of E-business solutions installation process
Is Your Website Credit Card Friendly?
In my last column I discussed the process of credit card enabling your brick-and-mortar business. I pointed out that research has shown that accepting credit cards can help increase revenue and enhance cash flow. I also pointed out that you may have to look beyond your local bank for help in getting things set up. This week we will look at setting up an online payment system for your business website. If you think hooking up a brick-and-mortar location with a credit card system stymies most bankers, try asking them how to do it on your website.
Getting Started: Creating a Business Plan
You're excited. You have a great idea for a profitable online business. Maybe it is an original idea that has not been marketed online before. Maybe you have come up with a new spin on the ordinary. Whatever it is that has influenced you to start your online business, be sure that you have a plan before you begin. This is not the time to "pick it up as you go". These are some basic things that should be included in your business plan.
Ecommerce Comes from Customer Satisfaction
Online shopping is convenient, but many companies whose web sites do brisk sales often leave consumers wanting. That's according to ForeSee Results, a research company that studied customer satisfaction among Internet shoppers. One way to improve the experience is gift cards, according to Merchant Commerce (http://merchantcommerce.net), an e-commerce services provider. Gift cards can be used to reward loyal customers and to attract new clients. "People love to tell their friends about new shops or products they have found," said Rebecca Campbell, Manager of Merchant Commerce. "Gift cards get shoppers in the door, whether it's a Web store or a physical outlet."
Selling Online for Newbies
If you are interested in selling online, it is quite easy to get started. First of all you must have a product or service to sell. The product or service can either be yours or someone else's. If you decide to sell someone's product in an affiliate program, try to know as much about the product as possible.
How to Write a Landing Page
Is there a difference between writing a landing page and any other web site page? Yes and no. But mainly, yes.
Ecommerce - Boost Your Business ROI
Did you know that over 90% of all online orders are processed by credit cards and that web sites that offer customers the ability to pay with credit cards can achieve up to 300% more sales than those that do not?
12 Powerful Ways To Use Autoresponders That Will Take YOU To The Top
If only I had known that autoresponders are a necessity to your online business when I first ventured online, I would have saved a lot of time and money. You have to automate in as many areas as possible and if used responsibly, autoresponders can be your best friend.
Expand Your Local Business Through the Internet
To obtain more local customers for your business, consider expanding your local business through the Internet. Here are some ways of doing so.
Is ClickBanks Popularity Drawing To An End?
ClickBank is the Internet's most popular payment processor for online payments but with many rivals appearing on the scene is ClickBank's popularity drawing to an end?
6 Steps to Attracting Black Customers Online
by Jamila White, "The E-Commerce Diva"
Writing Web Pages: Get To The Meat Faster
Much of my consulting work comprises writing 'Outside Opinion' reports on the sites of large companies and organizations. Sometimes I review just a few pages, sometimes fifty or more.
Ecommerce Marketing Plan
Concept of Service
Direct Marketing isn?t all Brute Force
There are so many metrics surrounding direct marketing. So many facts, figures, test results and other sundry measurements.
Pitfalls of Doing Big International Brokerage Business Online
Nothing has helped international brokerage business more than the internet: it enables a businessperson to do business with little or no capital and to make quick contacts. Yet nothing has made the brokerage business riskier. This comes from a broker unknowingly linking genuine or false buyers with genuine or false sellers. Other ingredients also exist to cook the broker an unpalatable soup.
Is Your Business Afraid of the Internet?
My Business is Afraid of the Internet
Online Lead Generation: Can it Work for My Business?
Business-to-business service providers have a wide range of tactics they can deploy to gain new clients or customers. Direct mail; cold calling; TV, radio or print advertising are all ways in which B2B services gain new customers. In the last 10 years, the Internet has become another strategy to boost business, through advertising, web site optimization and online lead generation.
Leveraging Open Source Technology
Open Source applications can bring unique value to business owners. Since the base application development costs of open source applications is free, small and medium business owners are able to leverage previously unobtainable technolgies against their sales objectives, operational costs and customer satisfaction levels.
Evaluating Vendors of Ecommerce Fulfillment Services
Once your website has secured an order, you have to fulfill it. While the fulfillment of digital goods is usually handled online, the delivery of physical goods is handled in a "brick-and-mortar" world.
|home | site map|