How online competition affects small retailers

05/15/2013 | New York Times (tiered subscription model), The

Online merchants have benefited from being able to avoid collecting sales taxes, but some have also chosen to keep their prices low specifically to drive smaller competitors out of business, writes small-business owner Jay Goltz. "If you are a retailer facing Internet competition, the new sales tax law -- if it passes -- should help, but it may not solve all of your problems," he cautions. Even a seemingly small decrease in sales can have a massive impact on the profitability of a local business, he writes.

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New York Times (tiered subscription model), The

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