In a previous post, I discussed the paradox of decision in regards to shopping online versus in person. Here, I am going to argue that you should shop in person because of the economic ramifications. Now, I feel lot of people think that shopping at mega-corporation’s brick and mortar store is the same as shopping at their online store, but you are wrong (I apologize, but I assume two things: 1) you believe that all the profits go to the corporate headquarters so there is no difference between shopping online or at their in person store as all the money funnels to the same place, 2) the stores would stay open anyway).
Let’s tackle point two first: the store would stay open anyway. No one is going to keep a store open if there isn’t a semblance of profit. Not only that, these companies have some of the profit measuring models in the world. The moment a store stays in the red for an extended period of time, they will close it. Keeping a store open means that they have to pay: utilities, wages, shipping fees, and many other pieces. While, if they are making all the sales in the area online, they can cut that entire cost out and just ship from their distribution center (the place that supplies you your online purchases also supplies the store’s inventory). So no, stores will close and I think most people can see that as we see massive retailers shut down their storefronts and move to online only.
The second assumption was that all the profit goes to a central headquarters. I was tricky here, all the profits do go to a central headquarters but not all the revenue does (revenue is the total sales, profits are what is left over after expenses and all that jazz). So when you buy a television in person, it costs a little more (even though they will often price match online prices). However, the profit margins between an instore and online purchase are vastly different. That single in-store purchase now kept some of the capital of your city in your city (the money gets doled out to the utility company and their employees, the retailer’s employees, the landscapers, everyone in the city that supports that company’s brick and mortar store). So yes, all the profits do go back to the mothership, but an in-store purchase provides less to the company and more to the workers of your city. So buy locally, even buying at a mega-corporation store will provide some benefit to your community (but I suggest you try and find an independent store cause then all your money stays in the area).