Why are online companies sometimes able to offer their products for lower base prices than retail stores?

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The reason for this is that online companies generally have lower costs than brick and mortar retail stores do.  One example of this is that online companies have lower fixed costs.  They do not need to rent expensive space in which to display their goods.  Instead, they can simply have...

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The reason for this is that online companies generally have lower costs than brick and mortar retail stores do.  One example of this is that online companies have lower fixed costs.  They do not need to rent expensive space in which to display their goods.  Instead, they can simply have warehouses and use the internet to display their goods.  As another example, they do not have to pay staff to be present at their store at all times.  They do not need salespeople available to help customers.  Instead, they just have customers look through their websites to decide what they want.  In these ways, online stores have lower costs and can therefore offer lower prices.

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