For smaller online retailers, cutting costs is essential to keep operations going. Since these merchants provide products for consumers all across the country, shipping, processing and other associated expenses can easily and quickly add up. There might be additional costs on the horizon, as several pieces of legislation are making their way through Congress. These bills are proposing that sales tax be implemented by individual states for online retailers, even if they do not have physical locations within those jurisdictions. However, many smaller internet companies are strongly opposed to the potential laws and are asking legislators to consider the increased costs and complications that it could create for the businesses.

Small online retailers form under We R Here

While these regulations would not have any impact on larger internet retailers such as Amazon.com, smaller companies are arguing that the laws would significantly increase expenses for them, as they would be required to collect the taxes. Internet Retailer reports that a coalition of sorts has been formed by these internet merchants. Titled "Web Enabled Retailers Helping Expand Retail Employment," or We R Here for short, the group is lobbying against the bills and stating that any of the sales tax enforcement would limit growth and stifle jobs for these businesses.

"We want to make policy makers know we are here, make sure they are aware of the critical role small web-enabled retailers play in today’s modern economy," said Phil Bond, We R Here's executive director, as quoted by the source. "It is not the job of small businesses to collect taxes for state and local governments where they don't live, don't have a business presence, and don't receive government services."

The organization has received the support of eBay Inc, as the company is comprised of thousands of smaller online retailers. We R Here is proposing that if laws are passed requiring online sales tax to be collected by merchants, then the government should also include a revenue threshold of annual sales that would exclude very small retailers from the regulation, states Internet Retailer.

California sees enforcement of online sales tax

In California, a law recently was enacted that requires internet retailers to collect sales tax from shoppers. The Los Angeles Times reports that the new regulations are expected to bring in approximately $317 million for the state as well as local governments after the first year. The news source notes that before the tax went into effect on Saturday, September 15, many California residents were stocking up on items online to avoid the extra fees.

It's no surprise that the world of ecommerce has seen a sharp increase over the last few years, as customers shop for items online and retailers offer their products and services for purchase through the internet. The holiday shopping season is definitely no exception. Last year, the amount of online sales leading up to and throughout the holiday rush reached a record. Retailers are expecting those numbers to increase this year, as they anticipate that shoppers will get their wish lists and items for loved ones on the web.

Retailers prepare for holidays

Although it is still a few months away, both customers and merchants are gearing up for the holiday shopping spree. Independent Retailer reports that total sales during the Thanksgiving and Christmas seasons last year came to approximately $35.27 billion, according to recent research from Forrester. This year, retailers are expecting that amounts will surpass last year's, both at brick-and-mortar locations and online.

The source states that there are several trends that businesses must be prepared for before the rush starts. Consumers are increasingly starting their shopping efforts early, so right before October will be the unofficial start for holiday gift buying season. Retailers need to determine which channels are most effective at selling products and services, and they should aim to develop those methods to see a boost in sales throughout the coming months. Additionally, more shoppers are going to be equipped with smartphones and tablets, both of which are purchasing and price comparison tools in the palms of their hands. Merchants need to take this trend into consideration, and implement systems that allow them accept and process these types of electronic transactions.

Hiring employees may help to bolster sales

As any manager knows, hiring more employees increases the chances of sales opportunities. This is exactly what many retailers are doing as they prepare for the holiday shopping season, reports Millionaire Corner. A recent study by the Hay Group found that 57 percent of businesses surveyed said they plan to bring on additional seasonal employees this year before the shopping rush. Thirty-six percent stated they will hire more workers than they did last year. This could be why many retailers anticipate that holiday sales will exceed the totals from last year, with 75 percent stating they expect to see significant increases.

The internet has brought about many changes for consumers and businesses worldwide. The web is constantly providing ways for new devices and solutions to be created or used. The retail industry has been especially impacted by the internet, as businesses are increasingly going online to promote their products and services, as well as bolster sales. There are even retailers that operate solely online and ship items to where customers are. The industry is constantly changing, and experts believe that consumer purchases will only continue to rise for internet retailers.

Web businesses to see increase

According to a recent report by Forrester and Barclays, the online marketplace, except for Amazon, brought in $14 billion in transactions in 2011, writes Independent Retailer. This amount is anticipated to increase to $54 billion by 2015. Despite this high number of purchases, there are still some aspects that online retailers are missing and that retailer-owned products have. If these businesses want to increase operations and revenue, there are some methods that will need to be taken into consideration.

Returning items to internet marketplaces seemed to be a difficulty that shoppers faced. The study discovered that some of these retailers lack the information needed to successfully return items, such as an address to where it can be shipped to. Although convenience is a major advantage of buying from these businesses, the average wait time to get these products was high, at 4.57 days.

Authors of the study stated that if online marketplace retailers can put more efforts into fixing these problems, then they can provide the same satisfaction and service that traditional and retailer-owned items do, writes the source.

Online sales for small retailers increasing

The month of August proved to be successful for many small retailers who offer products online. According to Internet Retailer, recent research by an industry software firm found that the amount of web sales for these businesses rose by 6 percent from the the same time last year. Some sectors performed better than others, as sporting goods sold more on the internet than last year. This was seen by a 32 percent increase from August 2011. Booksellers were also successful, as they experienced a boost of 20 percent from the same month last year.

The internet has become a valuable tool in today's world. It has also helped retailers and changed the commercial landscape, as consumers are increasingly going online to purchase services and goods. While shoppers still like to visit brick-and-mortar locations, the internet provides more convenience and sometimes faster transactions. Additionally, retailers that offer products online can see boosts in sales as they are now able to reach a wider range of consumers.

Small and midsize retailers get August boost

Internet Retailer reports that online sales for small and midsize retailers throughout August rose by 6 percent from the same time last year, according to a study by an industry software firm. This highlights the growing number of customers who are purchasing products and services online. These merchants also saw higher sales per order since the past year, with the average order size rising by 4.19 percent.

Among the small and midsize retailers that saw the most growth of internet sales since August of last year were booksellers and sporting good companies, the study found. Book retailers increased by 20 percent from the same time in 2011, and sporting goods merchants grew by 32 percent.

Retail web sales are up for many retailers across the country. A recently released report by comScore found that for the second quarter, the total amount reached $43.2 billion, or a 15 percent rise from the same quarter last year. This represents a steady increase of online purchasing over the past five years.

Discounts can easily boost online sales

For retailers looking to increase their internet sales, there may be hope with discounts. A study by GroupM Next discovered that consumers are willing to leave brick-and-mortar locations if a discount of 2.5 percent or more is offered online for products. Of the customers surveyed, 45 percent stated they would be willing to purchase items on the web for a small discount.

The amount of shoppers going online rises the higher the discount is, states the report. Approximately 60 percent of respondents said they would leave stores and use the internet to purchase products if the discounts are at least 5 percent.

"Consumers have shifted their path to purchase to include the store as a step but not necessarily the final step, and this will likely continue to increase over time," said GroupM Next CEO Chris Copeland.

Even though it's still a few months away, the 2012 holiday shopping season is expected to surpass last year's numbers. One trend that is also anticipated to see a rise in use is online purchases, as shoppers increasingly browse the internet to find and buy gifts.

A survey by RetailMeNot found that nearly one-third of consumers prefer to shop online for holiday purchases, and industry experts believe that number will continue to grow. Fifty-nine percent of customers stated they plan to shop at brick-and-mortar locations, and 10 percent of respondents said they are not planning on purchasing gifts in the weeks leading up to and during the holiday season. Additionally, the survey revealed that some online shoppers are not fully confident in the economy, as 71 stated they have a dismal view of current conditions.

However, just because some internet shoppers may not feel optimistic about the economy, retailers should soon begin efforts to prepare for the holiday season, both online and in-store. ClickZ reports that the shopping period doesn't start with Thanksgiving, but gets earlier each year, according to research by BIGinsight. Forty percent of holiday consumer purchases take place before Halloween, the research found.

As Congress gets closer to passing two pieces of legislation, retailers that conduct operations solely online could soon be required to start collecting state sales tax from purchases.

According to Independent Retailer, many states across the country have been arguing for online sales to be taxed, even if the retailer does not have a storefront location where the buyer is located. Supporters of the bills say that a large amount of money is lost each year for local and state governments, and internet shoppers should already be paying the amounts. The two potential laws, titled the Marketplace Equity Act and the Marketplace Fairness Act, would require states to create agencies that would collect, administer and oversee online sales taxes. Smaller internet businesses would be exempt from the law, reports the source.

Many states have already begun implementing policies that would help to collect the online taxes, but the current legislation would bolster those efforts, writes Bloomberg Businessweek. Although many previous forms of the two proposals have been put forth before Congress, they have not had the support and backing that the recent bills do, as ecommerce continues to grow within the retail industry.

Retail store operations could see a loss in sales if online sellers offer discounts. Consumers are more drawn to these types of deals and could possibly forego an in-store purchase in favor of an ecommerce one.

A recent study by GroupM Next found that almost half of consumers – 45 percent – who visit a retail store would instead purchase an item online if a discount of 2.5 percent of more was offered by the retail site. As these discount amounts increase, the more likely a shopper will leave the physical location and buy the item online. If a 5 percent discount is provided on a website, the number of consumers willing to leave the store jumps to 60 percent.

"Consumers have shifted their path to purchase to include the store as a step but not necessarily the final step, and this will likely continue to increase over time," said GroupM Next CEO Chris Copeland. "Brands that sit on either side, be it as the physical store or the online merchant, have multiple opportunities with this consumer change."

Discounts offered in retail stores helped to boost sales in July, reports Reuters. Consumer purchases made at brick-and-mortar locations increased by 4.6 percent throughout the month.

Consumers might be forgoing buying books and other educational resources in stores, as recent research found that online purchases for these items increased in July. This could be highlighting the changes in retail POS systems.

Internet Retailer reports that a study of ecommerce purchases revealed that books and educational materials topped the list for items bought online. Year-over-year, books and other resources rose by 24 percent. Overall sales are up by 23 percent in comparison to the total from the same time last year, the research found. Also faring well in the ecommerce marketplace was the sporting goods industry, which saw a 19 percent jump over the past year in online purchases.

Retail ecommerce in the U.S. has been steadily increasing the past few months, as research from comScore revealed a total of $43.2 billion was spent on online purchases, reports Power Retail. This represents a 15 percent increase from the same period in 2011, which reached a total of $37.5 billion. However, industry experts are not sure how long the increase in numbers will last, as economic uncertainty and the unemployment rate can have an impact on the retail industry.

Sales for online retail companies in the U.S. experienced a significant increase in this year's second quarter, highlighting the advantages that the internet and other online resources provide for businesses. However, some retail industry experts believe that the ecommerce purchasing method will soon begin to decrease, as they forecast the rest of 2012 will not fare so well for online retailers.

First half of 2012 positive for online retail

Recent research from comScore found that for the second quarter, ecommerce retail sales saw a 15 percent increase, equaling a total of $43.15 billion, reports Internet Retailer. This is a significant rise from the same time last year, when online retail accounted for $37.5 billion worth of sales. The first quarter of 2012 had 16.6 percent year-over-year growth. While Q2's numbers are not as high, comScore executives say the increases are still significant. The most recent reported spending totals represent the 11th quarter that has consecutively produced positive year-over-year increases. It is also the seventh quarter in a row that has had growth in the double-digits, states the source.

Many sectors within retail saw an increase, with apparel and accessories, consumer electronics and greeting cards and gift, along with several other categories, experiencing 16 percent year-over-year growth, comScore found. One aspect that did see a decrease was the number of ecommerce sales that offered free shipping. In Q2, 42 percent of retail transactions online included free shipping, a drop from 2011's fourth quarter rate of 51.8 percent.

Despite the positive numbers, comScore expects that the rest of 2012 will see a drop in retail ecommerce. The high unemployment rate and slow economic recovery may prevent consumers from purchasing goods and services online.

Internet browsers play role in retail ecommerce

Believe it or not, the different internet browsers have an impact on retail ecommerce sales. CNBC reports that a Monetate study revealed that during the day (between typical work hours) in May 2012, Internet Explorer was used the most for ecommerce. However, at nighttime, it was Apple's Safari browser which led the way, beating both Internet Explorer and Google's Chrome.

The reason for this could be because Internet Explorer is the main browser available in most offices and places of business, so shoppers are forced to buy items through this method. However, at night, when consumers are home, Safari jumps ahead. The website states that online retailers need to focus on optimizing their websites to format correctly in Apple's browser.

Amazon is leading the way for a group of internet retailers who are asking Congress to pass the Marketplace Fairness Act, known as S. 1832, which would set a revenue threshold for online retailers, in which they would have to collect and remit state sales tax in all states if they went over the predetermined limit.

According to Internet Retailer, Amazon's vice president for global public policy, Paul Misener, addressed members of the Senate and urged them to enact the law in order to better protect states and provide equal opportunities for all internet retailers. Misener used research conducted by his company to back up his arguments, and asked for the threshold to be at $150,000, instead of the current $500,000. The law in place only requires retailers to collect and remit sales tax in the states where they operate physical locations, states the news source.

"Congress should enact S. 1832 to protect the states' rights, address the states' fiscal needs and level the playing field for all sellers," said Misener.

Ecommerce Bytes reports that Misener also stated the proposed law would not create a new sales tax, but instead collect existing ones already owed. However, opponents of the law, including Steve DelBianco of NetChoice, say it will impose a new tax. DelBiano argued that the many different state and local tax codes must be harmonized in order to decrease the negative impact the legislation has on small businesses.