Business process barriers
Many e-tailers lose money on every transaction
Some product categories (toys) are at a disadvantage: difficult to pick, pack, and ship and attract small orders
Inexperience and lack of scale inflate fulfillment costs as much as $12-$16/order
Inexperience with merchandising and sourcing, intense price competition, and inventory management and product return problems lead to poor gross margins
Hecker (2001)
III. WhatÅfs happening now?
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