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A clarion call for expanding e-commerce

1 Jun 2009

E-commerce may account for just a tiny percentage of all retail sales, but it has tremendous momentum behind it. Overall, retail sales have shrunk due to the recession, but e-commerce sales keep growing. It's critical that governments at every level recognise the potential for e-commerce to swell the workforce and boost the economy - as long as its progress is not impeded.

America's winemakers have won a victory for online wine sales in Kansas, but the legislative battle demonstrates the challenges that e-commerce, a key force for economic recovery, still faces from outdated thinking and entrenched political institutions.

Signed into law in April, 2009, Kansas Senate Bill 212 allows direct-to-consumer (DTC) wine shipments over the Web for state residents beginning 1 July 2009. A common-sense outcome to many, this victory was hard-fought in a state that previously banned all DTC wine shipments. The victory comes four years after the US Supreme Court ruled unconstitutional those shipping rules that discriminate against out-of-state retailers.

Entrenched local wholesalers and retailers in Kansas quashed a 2006 attempt to liberalise shipping laws by financing a dubious voter survey to influence political opinions in an election year. They also pushed for onerous amendments that mandated online winery orders be shipped to retail liquor stores for pickup with a US$5 delivery tax. Shrewd political maneuvering by the brick-and-mortar distributors allowed them to retain their grip, but advocates for consumer choice are learning that the same techniques can be used to expand online economic freedom.

Read the full article here.