Clearly, Amazon.com and eBay are major — and aggressive — price-oriented online retailers. And yes, they have clobbered some store retailers’ profit margins and driven many store retailers out of business. And yes, they are competing with each other as well as other retailers.
But, despite the prowess of such successful online retailers, is store-based retailing really headed to the graveyard or dinosaur status? As Mark Twain once said: “The reports of my death have been greatly exaggerated.”
The most underwritten-about statistic in all the stories about online retailers clobbering their store-based counterparts is SIX PERCENT. This is the value of total U.S. retail purchases completed online. Guess who generates 90+ percent?
Consider these observations by Jeff Himmelman, writing for the New York Times:
“For some time now, physical retailers have lived in fear of the various ways in which Amazon can undercut them. If you’re looking for a product that…
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