December 3, 2012
Barnes & Noble has functioned well as a brick and mortar store since its inception. The company has developed over the years by adopting new products and keeping up with e-commerce as it has started develop. The company has been able to keep up with changes in the economy due to the development of the internet and e-commerce. We will examine how e-commerce has affected how the world around has changed.
E-commerce has taken affect on how supply and demand functions in markets. Price is a bigger point on an online purchase than it is in brick and mortar stores. It is much easier for customers to search for a product and the cost of them doing their research is greatly decreased. A customer is able to see all or most of the products that are available and are easily able to compare them side-by-side. Many retailers do not have brand recognition. This is due to the somewhat high turn around in the internet business along with newer existence of e-commerce. Online stores may not be able to exist in markets that have high demand products where the consumers want the product now. For this reason, there are not many online markets for perishable products. This is due to the delay because of shipping needs to occur and the high cost of immediate shipping. There is a lower cost for e-commerce because you have less overhead and you do not need to go through a middle man to get your product. Many internet stores will sell to customers that live nowhere near their physical location. This allows a company to break into a whole new audience that they would not have been able to develop with just one physical store.
A deterrent for using an online store is the time it takes to get a product after it has been ordered. Most physical items that can be delivered through an online store are also available at a brick and mortar store. Consumers will weigh the opportunity cost of...