Online Shopping Raises Ethical Dilemma

December 13, 2007 RSS Feed Print
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My friend Nader Iskandar, co-owner of the Book Cellar & Café bookstore in Plymouth, Mich., was recently complaining to me about the customers who browse his shelves, especially the political section, which he spends hours arranging, only to leave the store without buying anything. They often write down titles as they walk around, and Iskandar assumes that they go home and order the books off the Internet.

To him, this behavior is unfair and takes advantage of him and his hardworking staff. I have to admit that I have been guilty of doing it in the past and never gave it a second thought. After all, I want to buy what I need at the cheapest price possible, and if that means browsing in person only to buy online, why not? But speaking with Iskandar made me question the ethics of that approach. I asked him more about his views and would love to hear your own take on the subject as well. Is it wrong to glean information from local stores and then buy online? Please post your comments below.

Does it bother you when you see customers come into your store and write down titles that you have displayed, only to go buy them online later?
I can't help but be bothered by it, but I definitely don't let it frustrate me. Part of me wishes that these people would see the value in my bookstore and understand [the impact] of their actions.

What can you do to prevent this from happening?
I view my business in terms of the value of my product and services. If my customers are not purchasing my product, that means they don't see the value—at which point I would have to reduce prices or improve the service. So I simply continuously improve the service and the "convenience factor" for my customers.

For example, I maintain an excellent selection, deliver special orders within two business days and free of charge, provide a comforting atmosphere, and, most importantly, provide friendly, helpful service. In addition, I always stress the role that the bookstore plays to prop the image of downtown Plymouth in an effort to induce loyalty.

How can independent bookstores like yours survive when so many people buy books online?
We are increasingly becoming selfish, cultureless, bargain shoppers. Independent bookstores may only be able to thrive in high-income areas with culture and tradition. Also, independent bookstores have to offer a high [level of] service in addition to selling books. Offering a cafe is one of these services.

Are books usually cheaper online? If so, why is this?
Books are cheaper online if they are bought in volume. Buying one book at a time online could be costly because of shipping costs, but most online retailers offer free shipping when purchasing multiple books. The biggest reason that online retailers can sell books more cheaply is because of their volume. They can order directly from the publisher in bulk and stock the books in warehouses. A small, independent bookstore has to go through a middle vendor and has a 7 to 10 percent disadvantage due to the lower volume.

Before you owned a bookstore, were you guilty of using stores to do research before making online purchases? Would you ever do it today?
I never did that and never will. My favorite bookstore was Borders on State Street in Ann Arbor. Of course, that was before Borders became corporate. At the time, it was operated as independently owned store.

One thing for sure is that now I have immense distaste for corporate retailers, specifically in the coffee, restaurant, and book industry. Corporations might provide cheaper service, but it comes at the expense of service diversity, culture, and economy. The position of an independent business owner, who might be middle class, own a house, and spend his money locally, has been replaced by a manager who earns $10 an hour, who can barely afford a living. Profits only benefit a central corporation and savvy investors. Imagine if every Starbucks was independently owned or franchised. There would be thousands of new millionaires in the United States.

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shopping,
books

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i have personally gone into a paper plus store and iv wanted a map of taupo but i could not afford the book itself an the owner of the shop photo copied the page for me and only charged me for that so my point is i fopund this much easier and i would more than likely go back there again

mel waltz 6:32PM June 08, 2009

The definition of the Free Market System is defined as giving the consumer "the best possible quality product for the lowest possible price through competition". If viewing as a competition then Nader Iskandar is a sore loser (sorry if that seems mean). But Nader Iskandar has every right to go online and find out the prices that he is losing to and try and match or beat those prices. Because of double shipping (once to the retail and again to the consumer), he should be able to compete. Even items that qualify for "free shipping" still have shipping cost calculated into them otherwise the online retailer would not be making money. ("Free Shipping" is usually used to motivate buyers to buy more stuff.) In fact, Nader Iskandar probably doesn't even have to beat the online price but just get close enough to make consumers realize they are wasting time doing both in store and online shopping. If Nader Iskandar's business is still unable to match the price of the online sites even with shipping and this is because he has to go through some middle supplier, which the online sellers don’t go through, then the middle supplier is the problem. If Nader Iskandar cannot go around the middle supplier and therefore cannot offer a competitive price then he needs to sell something he can compete on such as used books or rare books.

The two basic keys successful business are finding the competitive and profitable balance in pricing and identifying when this is not possible (preferably before you go into business in the first place).

This is how business has been done since the dawn of time it is not magic or theory it is simply human nature.

Linds of FL 1:20AM January 01, 2009

I agree with Erik Sandall. Like it or not, the internet is changing the way we do business, and people are going to need to modify their business models in response to it. Bricks-and-mortar bookstores do provide services that internet booksellers just can't: the browsing experience, maybe an interesting and funky environment, and a warm and comfortable place to sit down. Plenty of people are probably willing to pay for those services, but maybe they're not willing to pay the full cost of a book. So how about this: Have a tip jar near the cash register, and have signs throughout the store saying "Feel free to browse our collection for as long as you like. But if you decide not to buy anything today, please consider donating a dollar or two to help us pay the rent and keep the lights on."

It's like how many people look at coffee shops: When they pay for their coffee, they're buying not only the caffeine fix, but also the experience of sitting in the coffee shop for an hour or so. Coffee shop proprietors don't generally stop people from getting a free cup of tap water and sitting around anyway, but most people are decent enough not to do that. They know they're receiving a service, and they're willing to pay for what they receive.

Johanna of MD 8:46PM May 04, 2008

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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