Online Shopping Raises Ethical Dilemma

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I'm guilty of exactly the behavior Iskandar describes, but I don't go home and purchase online--I go to the library. For me, it's not that independent booksellers like Iskandar are $2-$3 more expensive than online, it's that it's an outlay of $15-$20 in the first place. When I do purchase books, I tend to do so at independent shops, but I have a hard time justifying purchasing books too often, especially bestsellers. When I do purchase, it tends to be something offbeat that I never would have stumbled upon except at a great independent bookstore. I realize the library is also his competition, but it's hard to feel too selfish about supporting the public library.

Susannah of OH 7:13AM December 29, 2007

I find that I use the internet to investigate purchases and competitive prices, then look at our local businesses to see if I can purchase an item immediately (without having to pay for shipping), more often than I purchase online.

Sue of PA of PA 10:48PM December 25, 2007

I had the same problem fo years selling motorcycle tires. I don't see how it may exactly apply to books, but I established a reputation for excellent service and installation, on the first trip, without an appointment. I was one of the first to start using a computer spin balancer for MC tires, and I kept the service cheap, if the tires were purchased from me.

Price was a huge issue. I kept hammering my distributors about the mail order companies. I discovered some serious dirt about the distributors, and one of them started offering me "deals". These "deals" alowed me to be very competitive, and soon, I was selling a LOT of tires, and several other distributors started offering me "deals".

I believe almost any small business can become competitive, but it takes a lot of work and dedication, and a willingness to give up some unit profit to increase volume to the point you make the profit from your vendors.

Al Vrooman of OR 11:57AM December 15, 2007

If the bookstore owner is that concerned, he might think about reducing his prices where he can still make a profit but still give the customers a good deal. When you buy on line, you have to pay shipping. He must be charging quite a bit to exceed the cost of the online prices which also includes the shipping charge. He could also put the books in glass cases which may turn some people off.

Ronald R. Flinders of MO 11:55AM December 15, 2007

Sorry, I disagree.

Business has always been about competition and giving the custormer what s/he wants. If the business can't compete it becomes unprofitable and disappears. Any business that relies on customer charity is headed down the drain. Nader Iskandar understands this. He can see that it is likely that only the high income areas will be able to support pricey book stores, because when you add price and the price of gasoline together, you really, really, have to value service to pay the premium.

Doug of IA 11:49AM December 15, 2007

It's important for consumers to understand that they have tremendous power. If they don't support the local neighborhood stores with their dollars, those stores will be gone. And if those stores are part of a local shopping neighborhood, their closing will impact the entire community. If that doesn't matter to folks, then the Amazons of the world may make sense. But if does matter, you can't have it both ways.

Decide what's important -- if it's price alone, fine. But if living, or aspiring to live, in a community enhanced by local stores, restaurants, and services is important, you will need to support that community with your dollars. The good news is that those local businesses give back to the community on average 60% more money than chain stores or internet sellers, so you're also investing in your quality of life.

Hut Landon of CA 1:31PM December 14, 2007

I agree, Michael -- I don't feel so guilty when I go into Best Buy to compare computers and then order from the computer store directly online. And of course bad service is always bad, whether it's at a small or big store.

I think, though, that I will be more willing to cough up the extra $2-3 to buy books from a local, independently-owned bookstore now.

Kimberly Palmer of DC 1:08PM December 14, 2007

As someone who does about 65% of his non-grocery shopping online, I can tell you that this is something that I do somewhat often, mostly with big ticket electronics.

It's worth noting though that I wouldn't do this with a small business, not even a little bit. I really don't feel bad doing it with big box stores like Walmart, Target, Best Buy, and Circuit City.

In general, there are three reasons that I do this;

1) Service: I find the service at most stores these days abysmal. Staff are rude, disrespectful, indifferent, and ignorant about their products. While it's not entirely their fault, if my actions put these types of people out of business or out of a job then they have only themselves to blame.

Sometimes I WILL shop at a brick and mortar store where the service and knowledge of the staff is excellent.

2) Price: Yes, I care about getting the best price for what I'm buying. Call me a "selfish, cultureless, bargain shopper" if you want, its just propaganda and mud-slinging. Modern life in the NYC suburbs is expensive, and the middle class is struggling. My 1 bedroom apartment in the suburbs cost twice as much as my sister-in-law's 4 bedroom house on a half an acre in Seymour, Indiana, but they've had to go on WIC and she's got no one to watch her kids when she works. Sure, I could buy a 3 bedroom, 3 story condo for just a little more an hour and a half away from where I live now, but that's an hour and a half away from my job and family. That's just ridiculous. My wife and I combined earn an income just shy of 6 figures and we don't spend frivolously. I'm not singing the blues, this just is what it is.

If you want to call me selfish for trying to make my dollar go farther (sic), I don't care if you stay ignorant. I'll keep calling it trying to be financially responsible.

3) Availability: Look, if a store doesn't have what I need or am looking for then I will find it somewhere else. If I don't need or want it right away and you can get it in two days, then we're good if you're store is in a convenient location. I'm used to waiting 1-5 days for online shipping most of the time anyway. Most brick and mortar stores these days offer 1-2 weeks availability minimum for special orders, in my experience. Why would I go with that option, while paying more, and wasting time and the trip (including pricey gas) when I could get it delivered to my home or office for a much lower price (including shipping and generally avoiding tax, which I do at all costs)?

My wife special-ordered a movie from a local FYE to send to her stepbrother stationed in Iraq. She prepaid $6. This was over 2 months ago, the movie never came in, and calls to the store are met with rudeness and indifference and have proven fruitless. They won't refund the money over the phone, and calls to their general customer service go to an answering machine (not voicemail) and are NEVER returned. We could go down there to get our $6 back, but we don't normally go to that shopping center so we'd be wasting time and gas. I'd rather just write off the $6, and maybe do a chargeback. I know that's not technically a small business, and MOST small businesses would probably do better by us, but that's just part and parcel to the problems with shopping brick and mortar retail these days.

If that store goes out of business and the local employees are left without a job, they've earned it.

Michael of NY 12:09PM December 14, 2007

I grew up during the depression and was poor. One never forgets those times! One learned to save whenever possible. If the product quality is as good I count the pennies and choose the least expensive.

Best quality at best price!

John Black of CA 11:39AM December 14, 2007

Wow! You hit on a few items that may be the downfall of the independent business owner. Wal-Mart comes to town and soon after the local business community is eliminated! Large corporations are taking money from Main Street and depositing in Wall Street. I'm sure Mr. Iskandar as well as his business supports multiple other community retailors, and this is the step that is lost from a chain store.

Janet of IL 5:33PM December 13, 2007

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Alpha Consumer

Kimberly Palmer, senior editor for U.S. News & World Report, writes about making smarter financial decisions. She’s the author of Generation Earn: The Young Professional's Guide to Spending, Investing, and Giving Back.

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