The Online Retailer Trap
The model for selling products on the Internet has pretty much been about offering the lowest price for a given product. Online retailers have sold for prices far below retail stores and have been able to avoid charging sales tax as well. While you may have to pay for shipping, the cost of shipping was offset by the lack of sales tax and with the lower prices.
Retail stores are now offering online price matching and are able to compete with online retailers. This is making online product sales far more challenging. A consumer may see a great online price and then run straight to the nearest retailer and demand a price match. It is very difficult for an online retailer to make a profit in this model.
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