Thursday, July 24, 2008

Money & Business

Alpha Consumer by Kimberly Palmer

Online Shopping Raises Ethical Dilemma

December 13, 2007 01:48 PM ET | Kimberly Palmer | Permanent Link

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.

Tags: online shopping | shopping | books

Tools: Share | | Comments (3)

Reader Comments

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.

Buy it cheaper.

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!

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.

Add your thoughts

All comments are moderated and generally will be posted if they are on-topic and not abusive. For more information, please see our Comments FAQ.

advertisement

About Alpha Consumer

Send an E-mail to alphaconsumer@usnews.com.

Kimberly Palmer, senior editor for U.S. News & World Report, writes about how to save money, avoid scams, manage debt, and be a savvy shopper. Share with her your own money issues by sending questions to alphaconsumer@usnews.com.

Alpha Consumer

advertisement

NEWSLETTER

Sign up today for the latest headlines from U.S. News & World Report delivered to you free.

RSS FEEDS

Personalize your U.S. News with our feeds of blogs and breaking news headlines.

U.S. NEWS MOBILE

U.S. News daily briefings are also available on your mobile device.

Alpha Consumer Video and Podcasts

Use of this Web site constitutes acceptance of our Terms and Conditions of Use and Privacy Policy.