Is Online Sales Tax as Important to Consumers as Retailers Think?

Online sales tax has been a hot button issue over the past  year, but how exactly do consumers feel? Do they notice whether they pay sales tax, and how does it factor into their purchase decision? Bizrate Insights partnered with Sucharita Mulpuru of Forrester Research in order gauge consumer sentiment on online sales tax.

The full study can be downloaded for free here: Is Online Sales Tax as Important to Consumers as Retailers Think?

Key Highlights:
 
Online sales tax prevalence

  • 44% of online buyers reported paying sales tax on their order.
  • Health & Beauty purchases had the highest percentage of customers who paid sales tax (58%), while Electronics had the lowest percentage (28%).

How sales tax factors into the purchase decision

  • 59% of online buyers considered sales tax when making their purchase, though it is most often considered as a factor of total cost.
  • The importance of sales tax changes depending on the purchase for 67% of online buyers, while 9% always consider it important.
  • 22% of those who paid sales tax considered aborting their purchase, but factors other than cost ended up being more important to most of these customers.
  • Of those who did not pay sales tax, 36% would have purchase from the same retailer even if sales tax was charged, as their decision was based on other factors. For another 39%, the decision would be based on total cost as opposed to just looking at the sales tax.