You don’t need to buy new clothes in the mall.
Or the supermarket.
You can just walk out the door and buy new ones.
Or in your garage.
Or your closet.
And that’s the magic of online shopping.
With the advent of online retailers, people can walk into stores like Home Depot and buy anything they want.
They can pick out a new pair of shoes for $50.
Or a new sweater for $20.
Or two new underwear for $100.
All for just $50 to $100 a pop.
“Online retailers like Amazon and eBay are bringing in a lot of dollars,” says Mark O’Connell, who co-founded online retailer eGadgets.com in 2008 and is now a venture capitalist at Founders Fund.
“And they’re able to make their profits by being very efficient about the way they’re doing it.”
With Amazon’s online grocery business growing faster than the company itself, it is becoming increasingly important to think of eGadasts as a viable business model.
While Amazon may not be able to compete with online retail, it can make a huge impact by making online shopping less expensive for everyone.
That’s because Amazon doesn’t have to pay shipping fees.
And with online shopping, the retailer can use online coupons to sell items at cheaper prices.
And if a customer pays for a pair of socks, they can buy a new set of socks for $10.
In essence, Amazon is selling a cheaper version of the same product online.
“There’s an upside to this,” O’Connor says.
“If you’re a business and you’re in a market that you think might be very vulnerable, you can take advantage of it.
You might get a great deal and then you get your customers back.”
The potential upside to Amazon is that customers are more likely to return items.
If a customer buys a new shirt, the customer will likely return it and buy another one.
And they might also buy a replacement shirt for a different price.
And Amazon will save on the shipping fees, too.
“We can make sure that if a person returns an item, we get a credit for it and we don’t have any costs,” O.C.O.O., the company’s chief operating officer, says.
Amazon is a great example of a business model that makes online shopping more affordable.
But what about Amazon’s competitors?
One of the biggest advantages that online retailers have over traditional retailers is that they can take orders online.
If you are looking for a new dress, you may go to Amazon and find the right dress for you.
If someone is looking for an old pair of pants, you might go to eGads.com and find them the right pair for you, too, in the comfort of your own home.
“It’s a way to bring products to market that are very cheap, but at the same time provide an incredible value to our customers,” says O.J. O’Donnell, CEO of eBays, a website that helps people shop for furniture, electronics, and other home goods.
The company is owned by eBay founder Pierre Omidyar, who made $1.2 billion by selling the company in 2006.
“The internet allows us to do this,” he says.
But Omidys approach is complicated by Amazon.
Amazon has been able to do online shopping much better than eBay and other online retailers because its products are generally more expensive.
“Amazon has had a much better price-to-volume ratio for its products,” says Daniel Cappuccio, director of research at online retailer NewEgg.com.
“That’s one of the things we’re looking at to try and replicate.”
Amazon has also created an array of products that are more expensive than other online sellers.
In many cases, Amazon offers more items than other retailers, and those extra items cost more.
It’s cheaper to buy online.
That means that shoppers are spending less on shopping.
“With the internet, people have the ability to shop for things that aren’t necessarily the same as what they’re buying at a traditional store,” Omidya says.
There are also advantages for eGades.
They have an online presence, so they can get products shipped from stores nearby.
Amazon also charges customers a lower shipping fee.
“In a sense, the more Amazon gets into online commerce, the less expensive it is to ship products online,” Ondonna says.
This is important, because many of the products that Amazon offers online are typically not available at traditional stores.
And because Amazon has built its online presence into the site, the company has to ship the items online as well.
The savings are great for Amazon, because it can charge more for the items it sells online.
But it’s not a good thing for Amazon because the cost of shipping can make it difficult to compete on price.