This WSU Newsline Podcast is available at http://www.wichita.edu/newslinepodcast. See the transcript below:

You’re listening to the podcast edition of the Wichita State University audio newsline. Learn more about WSU on the Web at wichita.edu.

Holiday shoppers are rushing to stores to find gifts for friends and loved ones. Meanwhile, other shoppers prefer to shop online from the comfort of their home. Wichita State University marketing expert Cindy Claycomb says the battle for those shopping dollars continues to escalate.

Claycomb: “Online sales have really grown and especially during the holidays to the point where now it’s a concern for brick-and-mortar stores and the effect that those online sales can have on their sales.”

As recently as 2006, online spending was $608 million. This year it was more than $1.2 billion. Claycomb points out some of the advantages for online shoppers.

Claycomb: “There are some real advantages for online shoppers. First of all, it’s really easy to do research on products. Online sites are open 24 hours a day, seven days a week. And it’s really convenient for shoppers. You can shop when you want. You can shop in your pajamas.”

Claycomb explains why retail stores also have some advantages in attracting shoppers.

Claycomb: “There are some real advantages for retail stores or your brick and mortar stores also. Shoppers can go in and touch and feel and try on products before they buy. And oftentimes there’s just no waiting for products. You go into a store and buy it.”

Of course, both online sites and retail stores have to overcome some disadvantages as well, as Claycomb explains.

Claycomb: “There are some disadvantages for online shoppers. Returns aren’t as easy. You have to repackage materials and mail those products back if you want to. And you can’t try things on before you buy them. You can’t make sure shoes fit.”

“There are some disadvantages for retail shoppers. Stores aren’t open 24/7 often. There are crowds to compete with, and sometimes it’s hard to find what you want. Retailers don’t always have the inventory on hand that you might like.”

Nevertheless, Claycomb says, online-only shopping sites have one significant advantage in the battle for holiday shoppers’ dollars.

Claycomb: “There’s a major advantage for shoppers of online-only sites. And they can save money because you don’t pay sales tax on online only sites.”

Studies show more than 1 of every 4 dollars in purchases covered by sales taxes go uncollected in the United States because of online transactions, adding up to an estimated $12 billion annually in lost revenue, according to the Center for Business and Economic Research at the University of Tennessee. The biggest beneficiaries are Amazon, eBay, Overstock and other giant online retailers that operate almost entirely in cyberspace.

However, Claycomb doesn’t expect that advantage to be around much longer.

Claycomb: “That major advantage of not paying sales tax on an online-only site is probably going to come to an end in the next year or two. And that could help level the playing field for all retailers.”

Indiana State Senator Luke Kenley says, “Nobody likes paying taxes, but everybody recognizes you need some taxes for government to provide essential services.” He said the best taxes “are the ones that are fair and even-handed and don’t create unfair competition in the marketplace.”

Thanks for listening. Until next time, this is Joe Kleinsasser for Wichita State University.