For E-Tailers, the Shipping News Isn't Good

Just when you thought things couldn't get any worse for e-tailing stocks ... things might get worse for e-tailing stocks.

Next week a key policymaking group is expected to adopt an accounting change that will make gross margins at many e-tailers look even more pathetic than they are now. While the change won't cut into bottom-line earnings or cash flow, shriveling margins can only punish these hard-hit stocks, some of which have already taken a beating on concerns about slowing revenue growth.

Big Week for Accounting

Here's the fine print. The Financial Accounting Standards Board's Emerging Issues Task Force, whose recommendations have the force of the Securities and Exchange Commission behind them, will meet next Wednesday and Thursday to mull over 13 separate and thorny issues of accounting (sounds like a fun few days, no?). One of those deals with how companies should handle shipping and handling costs. That sounds like a simple thing, but it isn't. ...