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E-Commerce Versus Traditional Retail

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E-Commerce Versus Traditional Retail
E-commerce Versus Brick and Mortar Stores.
Carlos
Com170
8/30/2011
GWENDOLYN SZAFRANSKI

The American Shopping experience is constantly evolving, with shoppers demanding the most bang for their buck. Today Americans prefer brick and mortar, however, E-commerce is on the horizon. Both businesses have to adapt themselves to the ever-changing demands of American consumers. E-commerce has gained popularity with consumers due to its lower taxes, overhead, and few or no physical stores. With high overhead, employee gaps, and retail storefronts, more brick and mortar companies are facing greater difficulties conducting business in their current state of form.

E-commerce is growing today, due to its large price advantage E-commerce in favor of larger brick and mortar companies. Back in the early 90s, the federal government in effort to jump-start online sales later known as E-commerce to be tax-free. Amazon.com and EBay are two companies that have been in E-commerce since the beginning. Amazon.com achieves lower prices by having little overhead, less employees and physical stores, and as a result, Amazon.com can offer goods between 40 to 60% off retail on average. EBay offers lower prices by allowing anyone to post products online, which has allowed several small distributers to offer a variety of different goods. According to CNet.com, a leading Internet price comparison and electronics review website states that a Samsung TV model number LED8500 is $6,500 at BestBuy, and $1,350 with shipping on EBay. Like everything else, there are a few downsides to this E-commerce business model. E-commerce companies have little to no community involvement, and do not have a now factor. Certain smaller less reputable companies have charged; hidden shipping costs, and send customers used goods, but have no fear, not every small company in E-commerce is bad.

American made goods are on the rise hand in hand with E-commerce



References: www.cnet.com www.wallstreetjournal.com www.youtube.com

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