It appears that the traditional businesses are looking for new and creative ways to decrease overheads and increase profit margins. What better way is there to increase profit margins than decreasing overhead cost? It ensures that you make more money and can charge less for your product or service. This makes your online business more competitive than someone who has a traditional store.
Lets take a look at Online Pet Stores as an example. Pet stores that you more than likely currently frequent like Pet Smart has tremendous overheads such as employees, storefronts, utilities, insurance and much more.
All of a sudden someone like you or I starts up an Online Pet Store that has all of their products online. They have the potential to offer products at a much lower cost. This is a win-win for the consumer because they get their product online at a fair price with out the cost and time of driving somewhere to pick it up. How nice is that. They can save money and do something else with their free time.
The same thing it true of ikids place, which in an Online Kids Store, Online Dollar Stores or even the very popular Online Jewelry Stores. I could go on and on. What is especially nice about owning an online retail store is that you can own all of the above, because you simply act as a middleman.
Once you website is setup and running all you need to do is maintain it on a regular basis. Your customers go to your site, order from your site, the warehouse collects all monies owed online and they ship the product and you earn a nice income for the sale. You get to keep the difference between you wholesale cost and your retail cost. So you see once you have the websites setup you could easily own one of each.
The other nice thing about these types of Online Retail Stores is they charge a very minimal fee and you are setup within minutes with your own website. Why would they do that for such a small fee? If they can get people like you and I bringing them customers they do not have to worry about advertising, face-to-face confrontations with customers, employees, insurance or many of the other costs associated with owning a retail store front. In other words there overhead costs are greatly decreased as well.
It's a win-win situation for everyone.
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