The Internet is a major disruption for businesses, both large and small. Small retailers, in particular, have a lot to consider when the power of the Internet begins to change their business. A lot of focus lately has been on the Internet sales tax, and the advantage that online companies have over brick-and-mortar stores, leading to proposals to require online companies to collect the sales tax. But Jay Goltz, blogger for the New York Times, points out that that's not the only factor. Many online businesses are not making a profit, he says, and that's intentional. They price below cost to gain market share and brand value, hoping to make it back in the long run. But right now, it's changing the calculus for small business owners dramatically.
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