Costs Of Adding E-Commerce To Brick-And-Mortar Retailing
Source: American Express
Great scalability and customer reach at a relatively low cost (compared to traditional, brick-and-mortar stores) are the promises of ecommerce retailing. Day-to-day expenses are generally lower as a percentage of the opportunity for customer reach. If you're running a traditional retail store, you may be able to avoid certain expenses and use existing infrastructure in the ecommerce start-up phase. As your business grows, though, you'll find that expanding via the web will be less expensive for certain P&L line items but require extra spending in other categories.