A virtual retailer must find companies which will supply the necessary commodities that it sells online. Though inventories are significantly lower than that of traditional retailer, internet retailers also need to have its warehouse. Virtual retailers also need to forge partnerships with logistics companies in the delivery of their products. Online operation must also backed by support staffs which are committed in delivering a excellent customer service.
In terms of physical resources, online retailers less resources than a brick and mortar which operates on an international level. One virtual store is needed for an international internet retailer to serve all its global customers. A dot-com retailer also requires fewer inventories but it should be noted that companies must heavily invest in computer hardware and software to support processes. Financially, an online operation requires smaller cash outlay to finance physical resources and overhead. It should also be noted that e-commerce necessitates lower levels of working capital and telecommunication costs. In terms of human resource, an international internet retailer needs to deploy more employees who will man order taking and after-sales support. However, the total number of an international internet retailer is significantly lower than its brick and mortar counterpart.
According to AC Nielsen, Google, Inc. ...Show more