As big online stores like Tesco, WHSmith, and MVC move their fulfilment services to the Island to take advantage of the fact that it is VAT-free, Jersey's role as an ecommerce hub is becoming more and more controversial.
But now, local retailers are fighting back and working hard to get things to change. Marcus Quinn of www.foxy.co.uk is an example of a local business that is doing well in spite of the competition, but he has a very negative view of how Tesco and other big companies do business.
"They don't have any reason to be here. They don't help the local economy in any way. They don't pay taxes and don't hire anyone from the area. They live off of other things."
Quinn, whose company has about 15 employees in Jersey, thinks that the UK operations that are run from Jersey are just trying to avoid paying taxes.
"In Jersey, it's expensive to hire locals and even more expensive to rent space. We live on a beautiful island with a high standard of living, which is reflected in how much wages and rent cost. But the UK stores only have a small presence on the Island as a way to avoid paying tax. None of these extra costs apply to them."
Even so, some local businesses do well despite the problems. Play.com is the biggest online store in Europe and is run by a local company. In a similar way, www.foxy.co.uk has grown a lot and is still growing quickly.
"We think that customer service is what makes a business stand out," said Quinn. "We know that Jersey people are the friendliest and most helpful people in the world, so we only hire the best staff. This gives us an edge over the grocery stores. We offer something that they can't or won't, which gives us an edge over them."
