Even if California s governor does not sign the legislation it seems likely that other states will pursue this issue. It seems this combined lobby will push other legislatures to enact provisions similar to the California bill. If the two types of companies operate in exactly the same way, customers get more value by buying from the company that does not collect sales tax. This results in a lower advertising cost, as compared to the pure-play Internet company. Customers can order online and pick up in the store.
Customers can order online and return to the store.
Merchandise that is not in stock can be ordered online using in-store terminals. Customers that are nervous about ordering online can come into the store and be assisted by salespeople. People who do not want to give credit cards can pay cash in a store for goods to be ordered online and delivered through the mail. Finally, many pure-play Internet companies exist only because of support from Wall Street. Some believe these companies will ultimately be absorbed by traditional retailers, so that clicks and mortar will be the dominant form of business.