ETD: 685 Need software; Doing Business in Bermuda; Best Databases for Small Businesses; Internet Sales Taxes and the Founder of Staples; Is M-Commerce Dead and Buried?

E-Tailer's Digest etd_post@gapent.com
Tue, 13 May 2003 07:07:39 -0400


  E-Tailer's Digest --- Everything for the  Retailer
  Issue #0685		         May 13, 2003
  George Matyjewicz, Moderator         mailto:georgem@gapent.com
  Published by:  GAP Enterprises, Ltd.  http://www.etailersdigest.com
===================================================================

   CONTENTS

  [1]  Greetings
  [2]  Need software
  [3]  Doing Business in Bermuda
----- ---- --- -- -> Important Offer <- -- --- ---- ---- --
  [4]  Best Databases for Small Businesses
  [5]  Internet Sales Taxes and the Founder of Staples
  [6]  Is M-Commerce Dead and Buried?

===================================================================
  [1]  Greetings.
===================================================================
Hi All:

Hope all of our US members enjoyed Mother's Day.  How was business during 
this season and with the upcoming Father's Day?

Today we have some requests from list members who need help finding 
software.  Let's see what you can do.  And we have some interesting posts 
on issues reported before - databases, M-Commerce and Internet sales tax.

Microsoft announced that the iLoo product reported by their UK office was 
an April Fool's joke.  Seems there were reports that they introduced a 
toilet (loo for our British members) with Internet connection.  The pundits 
had a field day:

"The Microsoft iLoo,  an "April Fool's" joke even though it was launched on 
the 2nd of May,  suggests ­ if the reports are true ­ that Microsoft's 
legendary sense of timing is just as good as ever."  And, of course, a 
British inventor claims that the MSN "iLoo" was just a rip off of his idea. ;-)

What are your business plans for this summer?  How do you plan to attract 
business?

Now, let's get to everything for the retailer.


Sincerely


Dr. George Matyjewicz
Chief Global Strategist, GAP Enterprises, Ltd.
mailto:georgem@gapent.com
http://www.etailersdigest.com


===================================================================
  [2]  Need software
===================================================================
Good news: My e-book publishing business is moving along quite well. On the 
payment processing and download front, I've moved from:

1. Using a service bureau to process the credit card payments and handle 
secure downloads. Their system worked pretty well, but they took a 14% 
commission on each sale. Once I realized that my e-book had legs, so to 
speak, I figured it was time to get my own merchant account. So I did. This 
leads to the next phase on my journey...

2. Using my merchant account with an outsourced shopping cart host. It's 
better than most shopping carts, but I don't have as much control over the 
system as I'd like. And the pages that the cart generates are ug-lee.

One of my web design clients just purchased shopping cart software because 
he didn't want to be dependent on an external vendor for such an important 
part of his business. He also wanted to make his store pages look like the 
rest of his site. (And, speaking as his web designer, I busted my 
you-know-what to make his site look pretty.) Which leads to the decision 
I'm now mulling over...

3. Purchasing my own store software and running it on my web host's server. 
(They will allow me to do such things, and they are a terrific web host, BTW.)

So, feedback, please on store software for e-book sellers.


Martha Retallick, Lrpdesigns
Web Designer: http://www.Lrpdesigns.com
Author: http://www.PostcardMarketingSecrets.com

+++ [Next Post] +++
Open Source E-Commerce

I would be interested in hearing about experiences fellow readers of this 
list have with open source e-commerce software, particularly osCommerce.

I have successfully used another open source program called GeekLog at 
www.geeklog,net to develop many content rich web sites for my clients that 
allow my clients to add their own content, manage the site, and interact 
with visitors.  Examples of such sites can be found at 
http://cker.calendar.ca and at my own site at www.ebusinesstutor.com.

I am currently reviewing e-commerce solutions to decide which one to offer 
to clients who want an online storefront solution.  I prefer solutions 
which give my clients maximum control over their site so that they can add 
their own products, change their own prices, etc.

Thank you for your help.

"You can't jump a chasm in two jumps."  - David Lloyd George
-----------------------------------
Garland Coulson
The E-Business Tutor
For a FREE Quick Guide to E-Business, visit www.ebusinesstutor.com

===================================================================
  [3]  Doing Business in Bermuda
===================================================================
 >I am curious about why Bermuda is not a tax haven, especially
 >when companies like Stanley Tools moved there to save taxes
 >(they did return to CT however).

Please note that I am a simple retailer and not an economist or Government 
spokesman. What I am saying is my take on the subject.

Bermuda classifies itself as tax neutral which means no corporation, 
capital gains, income, profits or withholding taxes.

Stanley Tools wanted to move to Bermuda because we do not have corporate 
income tax nor do we tax earnings made outside the country.  The problem 
was that Stanley (and every other US domiciled company) had to pay tax to 
the US Government for every screwdriver that they sold in Europe (for 
example).  That screwdriver may never have been anywhere near the US.

Incorporation in Bermuda would have meant that they only paid tax to the US 
Government on US sales.

However, due to the pressures from unions and some shareholders they 
decided not to go ahead. They could have saved about $30 million by 
reincorporating here. Unions believed that moving the incorporation of the 
company to Bermuda would also involve all their jobs being given to 
Bermudians. The average income in Bermuda is the 4th highest in the world 
(more than USA), why would they want to make tools? Stanley might have 
employed about half a dozen people here.

In April 2003, Stanley announced that they would close four manufacturing 
plants and five warehouses, and almost immediately cut about 1,000 jobs as 
part of the restructuring effort.

So, union workers and shareholders have lost out as well as local 
communities where the plants and warehouses were located. And those local 
communities include retailers!

Bermuda has lost the cost of the incorporation fee and it's good name 
because people do not understand that we are not encouraging companies to 
come here. Bermuda has a long history as a legitimate business centre, with 
tough anti-fraud and money laundering laws. Our insurance companies are 
among the most reliable in the world.

Enough!!

Richard Woolnough

Bespoke Solutions Ltd
www.BespokeSolutionsLtd.com
+1(441)295 0951
We can tailor your business

+++ [Moderator's Comments] +++
Thanks Richard.  The US does have that strange ruling as does a couple of 
other countries, whereby companies (and citizens) domiciled in the US must 
pay taxes to the US, no matter where they earn money.   For individuals, 
you need to be out of the us for 330 days a year to be tax exempt.

Bermuda does have a great reputation for insurance and for anti-money 
laundering.  I had no idea that the salaries were so high.

George

==================================================================

----- ---- --- -- -> Important Offer <- -- --- ---- ---- --
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If you sell a service or an intangible product, we will
improve your sales closing ratio.  GUARANTEED!

See results within three months.
http://www.gapent.com/services/sales_strategy.htm

----- ---- --- -- -> Important Offer <- -- --- ---- ---- --


===================================================================
  [4]  Best Databases for Small Businesses
===================================================================
Oracle 9i Standard Edition carries a base list price of US$300 per user. 
SQL Server, by contrast, sells for $2,249 for 10 clients, or about $225 per 
client. On the high end of the spectrum, IBM's DB2 Workgroup Server sells 
for about $870 per user.

When it comes to choosing a database, size matters -- not so much the size 
of the database, but the size of the company. Whereas mid-size to large 
companies generally select a complex database and then task administrators 
and developers with building applications around it, small businesses 
usually take a different tack, focusing on simplicity and ease of use, 
because they often do not have an administrator on staff.

Database vendors are working hard to tailor their products to appeal to the 
low end of the market. So, what are the key selling points for small 
e-businesses that are database shopping?

The Big Three
Above all, small businesses look for databases that are easy to administer 
and install. Among database leaders Microsoft, Oracle and IBM, Microsoft 
appears to have the edge.

"That (easy installation) would be a hallmark of SQL Server," Forrester 
research director Philip Russom told the E-Commerce Times. IBM's DB2 and 
Oracle's 9i have a reputation for being more difficult and time-consuming 
to install, he said.

But Robert Shimp, vice president of database marketing at Oracle, disputed 
that notion. "There's a very mistaken impression that Oracle is somehow 
more complicated than competing databases," he told the E-Commerce Times, 
adding that Oracle 9i Standard Edition takes only about 10 to 15 minutes to 
install and has a graphical management interface.

Price, of course, is another key consideration for small businesses, 
according to Russom. As in the administration arena, Microsoft SQL Server 
enjoys a reputation as the low-price leader, and prices listed online bear 
that out. Oracle 9i Standard Edition carries a base list price of US$300 
per user. SQL Server, by contrast, sells for $2,249 for 10 clients, or 
about $225 per client. However, Oracle offers special discounts for small 
and mid-size businesses.

Details at...
http://www.ecommercetimes.com/perl/story/21323.html

==================================================================
  [5]  Internet Sales Taxes and the Founder of Staples
==================================================================
Here is an article on Internet Sales Taxes and the Founder of Staples, 
wants this to happen.  Of course, they have stores in a lot of taxing 
jurisdictions, and they have to collect sales taxes in each of the 
jurisdictions.  So they want every one else to do the same.

I guess, I won't be shopping at Staples.  I know it is an emotional issue, 
but let's vent.  It helps.

http://boston.com/dailyglobe2/132/business/For_Staples_founder_Stemberg_Net_taxes_make_business_sense+.shtml

Yours truly

Jules Kaplan
ChekFaxx Development Co. INC.- E-commerce Payment Solution Provider
  Available  NOW    http://www.addressmanagerpro.com
Discover how to add your email address  to  Your Windows Address Book
admin@chekfaxx.com - 480-991-7025  OR 800-220-0468  - FAX 310-362-8746
Accept Check by FAX - PHONE - E-MAIL - INTERNET  http://chekfaxx.com

+++ [Moderator's Comments] +++
All the 800 pounders seem to be of the same mindset - collect taxes on 
Internet sales.  Of course, as you point out, they all have a presence in 
the 44 states that collect sales tax, so it's no big deal.

Interesting to note in that article, that the Supreme Court in the Quill 
(owned by Staples) decision held that states could start taxing 
out-of-state retailers under two conditions. First, they'd have to simplify 
their arcane sales tax rules. Second, Congress, using its power to regulate 
interstate commerce, would have to permit states to levy taxes beyond their 
borders.

The first condition is well on its way to being met. Most of the taxing 
states have signed on to a simplification plan that would create a uniform 
sales tax system. Armed with the promise of reform, Stemberg is lobbying 
Congress to let the tax collecting begin.

It's coming folks.

George

===================================================================
  [6]  Is M-Commerce Dead and Buried?
===================================================================
Back in early 2000, mobile commerce seemed to have sky-high potential. A 
global survey found that 61 percent of respondents imagined they soon would 
be using wireless devices as universal payment tools, and the analysts who 
compiled the survey predicted that overall revenue generated by m-commerce 
would total US$100 billion in 2003.

"The hype came in a big way, and then it died in an even bigger way, 
because the hype was never really justified to begin with," Yankee Group 
analyst Adam Zawel told the E-Commerce Times. "But m-commerce is not dead 
on the vine; it's just a much longer growing season than we expected."

Although some may think m-commerce is a spectacular failure, others in the 
industry believe it is a sleeping giant whose time has yet to come. "It's 
still too early to tell whether it will be successful or not because it 
hasn't really existed yet," said Verizon Communications' Jeffrey Nelson, 
executive director for corporate communications. "For Verizon Wireless, 
it's too early to begin implementing an m-commerce strategy. It's something 
that we're thinking about, but it's years down the road."

Nelson told the E-Commerce Times that, over time, there have been many 
different ideas about the definition of m-commerce. At one time, it was 
seen as consumers using a wireless device to buy soda from a vending 
machine or order books from Amazon.com. At another, it was defined as a 
mobile phone spitting out a coupon for 10 cents off a latté as a consumer 
strolled past a Starbucks.

Although mobile commerce has many facets, including the ability to conduct 
wireless banking, access the Internet or find information on the fly, most 
consumers now think of it as a wireless wallet -- the ability to make 
financial transactions at a point of sale using a wireless device. In this 
scenario, consumers are recognized by the signals they emit, most likely 
from their wireless phones or PDAs, and they can purchase goods and 
services from vending machines and businesses without having to use a 
checkbook, credit card or cash.

But making the wireless wallet a reality will require an evolution of both 
technology and consumer attitudes that is still far in the distance. "I 
spend all my time on m-commerce, but I can't pick a point when all of these 
pieces are going to come together, when it's all going to work as perfectly 
as we'd like," Zawel said. "But while I can't pinpoint the date, I am 
convinced that we will continue to see a move in that direction because the 
idea is so compelling."

What do you think?

Details at...
http://www.ecommercetimes.com/perl/story/21464.html

===================================================================
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