Should you be able to buy a car online?

It’s illegal to buy a car direct from the factory or over the internet.  You have to go through a local dealer.  The electric car company Tesla is trying to change that.  But state and local governments are resisting.  That, arguably, goes against the free market and against the trends of the new technology.  But do we really want online commerce to kill off small businesses that are the backbone of many small town economies? [Read more...]

How teenagers buy music today

The music industry is struggling because so much of its product can be accessed for free, what with YouTube and “radio” sites such as Pandora (setting aside illegal downloads).  But even when a person wants to buy music, it’s hard if you aren’t old enough for a credit card.  And it’s even harder if you want to buy music your parents wouldn’t approve of.  From Aaron Leitko:

The Internet has given kids boundless opportunities to hear music gratis, but few ways to pay for it.

To shop for mp3s on iTunes or Amazon, you need a credit card or debit card. If you’re a minor with an allowance, you probably don’t have either. . . .

If your tastes don’t align with Best Buy’s music buyer, you’ll have to turn to iTunes. And your folks, who control the purse strings.

“Right now, most kids are using parents’ iTunes accounts or otherwise relying on parental permission to make their purchases,” says Mary Madden, a researcher at the Pew Internet and American Life Project. The only hiccup: The songs that teenagers want to hear and the songs their parents let them hear are often very different. Leveraging chores in exchange for Kanye West’s “My Beautiful Dark Twisted Fantasy” (uncensored version, of course), the Tool discography or anything Odd Future-related is for brazen teens with particularly liberal or oblivious parents. For the rest, an awkward conversation about the record’s content is inevitable — unless they get their hands on a gift card.

“This is kind of the untold genius of iTunes that’s not spoken about, when it comes to teenagers, is the gift card,” says Crupnick, who estimates that two-thirds of the money teens spend online is with such cards. . . .

“They only ever pay for music out of respect for the artist,” MTV researcher Mariana Agathoklis says. “They almost view that as a way to show off their fandom, where it used to be that you would follow an artist on tour, you would look like them and wear their T-shirts.” A record is no longer an impulse buy — it’s patronage.

via How can you be a rebel if you use Mom’s iTunes account? – The Washington Post.

Amazon’s same DAY delivery

We blogged earlier about how online shopping sites have a big advantage over local businesses in not having to charge sales tax.  So states and now Congress have been trying to pass laws to collect those taxes.  Amazon used to fight those efforts, but no longer, saying, in effect, throw me into that briar patch. From Farhad Manjoo in Slate:

Why would Amazon give up its precious tax advantage? This week, as part of an excellent investigative series on the firm, the Financial Times’ Barney Jopson reports that Amazon’s tax capitulation is part of a major shift in the company’s operations. Amazon’s grand strategy has been to set up distribution centers in faraway, low-cost states and then ship stuff to people in more populous, high-cost states. When I order stuff from Amazon, for instance, it gets shipped to California from one of the company’s massive warehouses in Kentucky or Nevada.

But now Amazon has a new game. Now that it has agreed to collect sales taxes, the company can legally set up warehouses right inside some of the largest metropolitan areas in the nation. Why would it want to do that? Because Amazon’s new goal is to get stuff to you immediately—as soon as a few hours after you hit Buy. . . .

It’s hard to overstate how thoroughly this move will shake up the retail industry. Same-day delivery has long been the holy grail of Internet retailers, something that dozens of startups have tried and failed to accomplish. (Remember Kozmo.com?) But Amazon is investing billions to make next-day delivery standard, and same-day delivery an option for lots of customers. If it can pull that off, the company will permanently alter how we shop. To put it more bluntly: Physical retailers will be hosed.

via Amazon same-day delivery: How the e-commerce giant will destroy local retail. – Slate Magazine.

Spelling and the internet

The BBC reports that Great Britain’s online economy is harmed by bad spelling:

An online entrepreneur says that poor spelling is costing the UK millions of pounds in lost revenue for internet businesses.

Charles Duncombe says an analysis of website figures shows a single spelling mistake can cut online sales in half.

Mr Duncombe says when recruiting staff he has been “shocked at the poor quality of written English”.

He says the big problem for online firms isn’t technology but finding staff who can spell.

The concerns were echoed by the CBI whose head of education and skills warned that too many employers were having to invest in remedial literacy lessons for their staff.

Mr Duncombe, who runs travel, mobile phones and clothing websites, says that poor spelling is a serious problem for the online economy.

Charles Duncombe says poor spelling is costing the economy millions

“Often these cutting-edge companies depend upon old-fashioned skills,” says Mr Duncombe.

And he says that the struggle to recruit enough staff who can spell means that this sector of the economy is not as efficient as it might be.

Figures from the Office for National Statistics published last month showed internet sales in the UK running at £527m per week.

“I know that industry bemoaning the education system is nothing new but it is becoming more and more of a problem with more companies going online.

“This is because when you sell or communicate on the internet 99% of the time it is done by the written word.”

Mr Duncombe says that it is possible to identify the specific impact of a spelling mistake on sales.

He says he measured the revenue per visitor to the tightsplease.co.uk website and found that the revenue was twice as high after an error was corrected.

“If you project this across the whole of internet retail then millions of pounds worth of business is probably being lost each week due to simple spelling mistakes,” says Mr Duncombe, director of the Just Say Please group.

Spelling is important to the credibility of a website, he says. When there are underlying concerns about fraud and safety, then getting the basics right is essential.

via BBC News – Spelling mistakes ‘cost millions’ in lost online sales.

This reminds us that information technology still communicates most of that information by language and therefore the classic skills of writing and reading well are still necessary.

Are there other cues that make you not trust an internet site?


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