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#31 |
Chowder Head
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Sort of, but it is not a 1:1 relationship. The cost to ship a single item (online purchase) vs. the cost to ship a pallet of materials amortized over multiple items (brick and mortar).
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#32 |
I Floop the Pig
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Of course. But then there are all of the other costs that come along with a physical store location (property costs, utilities, staffing, etc. etc.).
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#33 | |
Chowder Head
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Quote:
And this isn't meant as a disagreement, just as a discussion of minutiae.
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#34 | |
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Quote:
Basically, an online retailer has a warehouse (and all the costs associated with the physicality of that) + a warehouse staff + a staff to handle shipping + cost of shipping individual items. A retail company (and in this thread the focus has been on the big guys, Target et. al) has a warehouse (and all the costs associated with the physicality of that) + retail stores (and all the costs associated with the physicality of that) + a warehouse staff + a (admittedly smaller) staff to handle shipping + cost of of moving stuff from warehouse to retail store + retail store staff. So all the stuff an online retailer has to pay for (minus a small fudge factor due to increased efficiency of not shipping to individual addresses) and THEN all the stuff that comes with brick and mortar.
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