Internet based and phone based companies have definite strengths and weaknesses. In terms of strengths, there are two:
First, there is little overhead in terms of rent. In other words, you do not have to own or rent a physical store, which can be very costly. All you need is warehouse. Or if you play them middleman, then you do not even need a warehouse. These are great cost savers, especially when you also factor in the fact that you do not need to pay sales people.
Second, to have a internet based store, you are always open, since people can visit your website anytime.
These are great strengths, but there are weaknesses as well. First, customers are not able to see the product. So, they might not take the step to buy it. Or if they do buy it, they might return it, which can be a real hassle. Second, you might not be able to advertise as well. There is something about having flagship stores.