Gov't mulls new regulations for online stores
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Hu Chao is a consumer seller, and he worries about the coming policies. "I opened a store on the Internet because it is cheaper. You don't have to rent a storefront, you don't have to register a license, and you don't even have to pay taxes."
He worries that his costs will have to increase if the regulations impact storeowners like him.
Zhang of the iRearch group says that consumers need not worry about increasing prices.
Taxation doesn't necessarily result in surging prices, she told China Daily.
"Big sellers have enough capital to bargain with suppliers. So increasing prices is not the only possibility."
However, B2C sellers hope that large C2C sellers will raise their prices.
Many B2C sellers open stores on C2C websites. And they are making use of the legal loophole to evade taxes, says Yihaodian president Han.
"They are more flexible than normal business sellers. They can lower their cost by evading taxes," he says.
Zhang confirmed that, adding that many consumer sellers have developed into small companies, which are not under government regulations. "This is common; more and more are doing so. But no statistics are available now."
On the other hand, if the government levies taxes on big C2C sellers, counterfeit products will lose their place in the market, Han said.
Since C2C sellers will be forced to ask for receipts of their incoming goods, counterfeit products will be squeezed out because unlawful suppliers can't provide receipts.
"That will be good for the overall online business," Han says.
iResearch's Zhang avoids making any judgment so far.
"Since the regulation is not published yet, it's hard to predict its influence ... but my suggestion is to set principles instead of detailed regulations, because China's electronic commerce business is still at a budding stage."
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