We make
more people employed if we shop on line. One to receive your order, one to
process it, one to search for it, one to load the van & one to deliver it.
This comment was recently left on the website of a national
newspaper. It related to a news item
about the impact of changes to business rates on some independent shops in the
town of Hatfield in Hertfordshire.
A lot of the comments are along the lines that the government is not on
the side of small independent shops, but rather on the side of big
business. The comment cited above
suggests that buying online makes more sense, and appears to refer to buying
online from a large retailer.
My first comment is that I read somewhere a few years back that a pound
spent in an independent shop creates more jobs than a pound spent in a
supermarket. I have no idea what
evidence if any supported this assertion, and I merely repeat it.
My second comment is that an online retailer is not necessarily a large
company. I often buy things on the
internet, and so far as I can make out I am often buying from small traders. In fact it appears that a lot of the things I
buy are sold by people trading from their own homes.
As an aside, I can think of one large online retailer from which I have
never bought anything, and never plan to buy anything.
If I buy something from a large company, whether or not that be an
online purchase, then I may well be contributing to the salaries of a number of
people. I make the purchase, and an
accounts clerk processes my payment. My
order is printed in a warehouse, and a picker collects the item I have
bought. This is then taken to a packer
who begins the process of actually delivering the item to me. The eventual delivery could be made via Royal
Mail or a private courier firm.
By contrast, if I buy something from an independent trader, then I would
be contributing to that trader’s revenues, but I might not be contributing to
the salary of a single employee. Quite
simply the trader might not have any employees, although delivery would
presumably still be via either Royal Mail or a private courier firm, and so I
would in that sense be contributing to someone’s salary.
Nevertheless the salaries earned by the employees of the large companies
would derive not merely from my purchase, but from the purchases of many
customers. Also, it is likely that the
large company will employ many of its workers on a salary of the minimum wage
or not much more. It is also
questionable to what extent the employees would benefit from the company having
a higher turnover. Higher turnover might
well result in the company recruiting more staff, but that is not the same as
improving the salaries.
By contrast, if I buy from an independent retailer, then I am tending to
increase the income of that trader. The
trader might scrape by or might enjoy a substantial income. If the trader employs any staff, then he or
she has an obvious incentive to pay above the minimum wage.
A large company can more easily cope with a high staff turnover than a
small business. If you have a business
and employ just one person, then you are likely to be seriously inconvenienced if
that one employee leaves to get another job.
By contrast, a company with hundreds of employees will tend to find the
loss of one employee to be less of an inconvenience.
This is of course a generalisation, and I accept that not all small
businesses pay good wages – but that is in part because not all of them can
afford to.