E-tailers are simply retailers who use the internet to sell their goods/services to their customers, rather than actual stores. There are two types of e-tailer, one category whereby e-commerce is the only operation undertaken by the company; examples of such organisations include E-Bay, Amazon, and Dell. The other type includes e-commerce as part of their overall marketing strategy, whilst still having a physical, bricks and mortar tore, whereby customers can still go in and purchase the good/service. Examples of this type of e-tailer are Dixons, Tesco and WH Smith.
Those companies who operate purely as ecommerce stores are able to achieve greater profit margins, due to their set up and operational costs being much lower than that of a traditional store. They do not have to pay any rent on a building whilst they still often have to pay for their Web Hosting, the cost is much less, there are no added rates for such overheads as water, electricity, gas, etc. Labour costs are significantly less, where one person could realistically run a website, package goods and answer enquiries via email; this is unlikely to be the case where a full time store is involved. On top of...
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