Originally Posted by gdl203
The Euro VAT tax loophole is as real as it gets. It's essentially disguised dumping and is slowly eating up US retail. Does anyone think there's a particularly good reason for the success and proliferation of online stores in the UK/EU pushing into the US market with less than average sites, 2 pics of each garment and no good information? There is one : they're effectively 20% under msrp because of VAT detax and lack of duties levying on this side of the Atlantic.
I agree. This kind of problem seems to exist for Japanese goods too. In certain corners of fashion, you can find Japanese things pretty easily online, which pretty negates the need to ever buy from a US store (where prices are always about ~30% higher). It seems like the only reason why the problem isn't as big is because not many Japanese stores have English-friendly webshops.
I'm curious, Greg, what do you think is the solution? As a person who's now neck deep in retail, I imagine you've thought about this a lot. At least for me, the big draws to buying from a US store are usually 1) unique makes, 2) MTO (for some reason, not often offered by a European online store), 3) easier returns (cause ordering clothes over the internet still comes with various risks). I don't know if that actually translates to sales, and importantly, profits though. I could see high return rates also eating into a store's profits.