Commentary

Trump, tech, and taxes: What's in store for 2017

Whatever your feelings about President Donald Trump, one thing is for sure: 2017 is going to be an interesting year for everyone.

Photo source: istock.com

March 24, 2017

By Jake Weatherly, CEO, SheerID

Whatever your feelings about President Donald Trump, one thing is for sure: 2017 is going to be an interesting year for everyone. Many are looking forward and wondering what changes may be coming their way, both from an economical perspective, and from a technological one. For America's businesses specifically, decreased regulations, potential tax alleviations, and a continued shift toward personalized shopping experiences will all be front and center come the new year.

Internet taxation in Trump's America

For years now, variations of the same bill have been drafted and died on the congressional floor, but that could all come to an end in 2017.

The Internet Sales Tax bill, also known as the Amazon Tax, or in years past, the Marketplace Fairness Act, are all tax bills that would require online businesses to pay taxes on what they sell over the internet. For those in favor, this bill represents tax fairness for all sellers, as retailers with physical locations are required to pay taxes on all sales while ecommerce businesses are not. For those against, this would unfairly target small online businesses who rely on slim margins to make a profit.

No matter where you stand, 2017 may be the end of this argument as we know it. It's no secret that Mr. Trump and fellow Republicans are planning on a decrease in regulations and taxes in the U.S. With Republicans controlling the House, Senate, and White House, hotly contested taxation regulations like this one will likely fall out of favor.

The age of convenience

Even with the Internet Tax potentially on its last leg, the growth of online shopping is something that is here to stay, and it is poised to continue growing at a rapid clip. According to the Department of Commerce at the U.S. Census Bureau, 2016 ecommerce sales through the third quarter totaled over $291 million, accounting for 8.4 percent of total retail sales to that point, which is a steady increase year over year. This is directly in line with Forrester's prediction that online sales in the U.S. will reach $523 billion in the next five years.

This adoption of ecommerce by today's consumers has given life to a variety of new musts for businesses, most significantly, the need to create a simplified, personalized customer experience that mimics the feeling of shopping in stores.

More and more, conversions rely on personalized ads, discounts, and suggestions, while the threat of cart abandonment depends heavily on ease of experience. In a holiday shopping study done by SheerID, over 40 percent of respondents said they would abandon their shopping cart as a result of a frustrating checkout experience.

These trends point to one thing: Today's market demands convenience. As we enter into the new year, we will see the continuation of multichannel retailing, however, businesses will spend significantly more on both their customer experience teams and technology that will allow them to understand their customers in a deeper level. Any and all customer data available will be utilized to get a full picture of preferences that will then be used to serve up exactly what the customer wants.

Whether or not businesses are able to provide those convenient, personalized experiences to their customers will ultimately be what seals their fates.

It's not over for brick-and-mortar locations that embrace tech

While the paradigm shift created by the rise of ecommerce proves a huge hurdle for brick-and-mortar locations, 2017 will be a year of opportunity for traditional businesses to utilize smart technology to reach their consumers.

Connected devices, omnichannel strategies that incorporate mobile directly into the in-person buying experience, and in-store personnel armed with tech to merge the convenience of online shopping with the personal connection of in-store buying, will all contribute to the rise of the "smart store."

Already embraced by companies like Verizon and Nike who have opened concept stores that thrive on smart technology, these connected stores will get consumers excited about shopping in physical locations again as they marry tech and tradition in one place. The companies that create this experience with customer convenience in mind will be the ones that stick around in an economy that’s soon to be cannibalized by online purchasing.

Whether it's with technology or policy, no matter what side of the fence you sit on, all we can hope for is that 2017 will be a year of growth and success for businesses across America.