AMR Solve These Four Problems and Make Your Website Profitable
In most cases, a retailer’s e-commerce business should be more profitable than its traditional brick-and-mortar business. If a company has been operating a functional e-commerce site for more than three years, it should be realizing proficiency, efficiency, and economies of scale. Brick-and-mortar channel expansion and operations involve costly investment in real estate, site improvements, staff, training, and inventory. Most retailers have suspended capital investments for store expansions for 2009 anyway.
So how come some retailers’ web businesses aren’t more profitable? In this online retail report, four reasons are examined: an expansive and expensive menu of applications, distended organizations, inefficient fulfillment networks, and the balance between shipping charges and costs.
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