Gordon Bennett wrote:There are definitely retailers in the space that you mention, but there are also plenty of retailers out there who push the margins beyond where they need to be - I've had to work with some in the past. The internet trading age has come as quite a shock to them. At the end of the day, regardless, the consumer is the one that suffers - and I don't understand why enzedder would be delighted with that outcome.booji boy wrote:I don't blame NZ retailers. They are the meat in the sandwich. Goods shipped into NZ are massively overpriced by the manufacturers and distributors. The poor old retailers are just trying to make a buck on already over priced goods. I've spoken with local retailers and the prices I'm able to get direct from overseas online sellers are less than they have to pay to ship the goods through the licensed distributors. It's a rort alright but the retailers are not to blame.Gordon Bennett wrote:Ha. What rot. If Kiwi retailers weren't massively overcharging for stuff - including Kiwi online retailers - then overseas purchases wouldn't be a thing.Enzedder wrote:Good to see that the Amazon site will be blocked to Kiwi users very soon. They don;'t want to collect the GST on purchases from Kiwis. Don't care - Kiwi retailers need to be protected (Trump style) and Amazon can get stuffed.
They have to collect for Oz too but there they are opening a store and website for Oz users.
This will do Kiwi retailers more harm in the long run. As soon as Amazon open a branch here, they're f**ked.
I don't agree with deadduck on much, but when goods can be purchased for half the price (even with the GST added on) from overseas, there's something wrong. The problem with the NZ retail sector is the lack of competition. This is too small a market to have dozens of players in the same space, so the consumer gets rorted. And the people lose out the most are at the poorer end. The well-to-do will just pick up the cheaper goods on their next overseas jaunt or use the mail-proxy service that NZ Post (and others) already offer.
Who can ever forget those two clowns from Adidas trying to explain why you can buy an All Black jersey in the US for about half the price it costs in NZ.
No one is doing anything wrong or rorting everyone, it's just the business model has been superseded.
There is no reason to pay CBD rents for storing retail goods on shelves and then to pay staff to tell you which shelf to go to and ring it up for you.
There is a sound logic to charging a consumption tax (GST), but in the modern world it carries tricky collection and enforcement costs. I think we should think about using other models for this reason.
Extracting more GST out of New Zealand consumers just means we can purchase fewer goods and we have less money left over to spend on local services.
If my books, clothes, and boardgames cost more from Amazon then I'm just going to spend the same amount less on coffee, burgers, craft beer and NZ made movies. This is:
- revenue neutral for the NZ gov
- revenue loss for local NZ business
- quality of life loss for NZ consumers