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How the Web Drags on Some Retailers
Keywords:
Kohls online retail sales show margins of 4% compared to 10% for in-store sales. Wal-Mart is losing money on online sales as it invests in technology and infrastructure for Web operations. Best Buy's margins are thin on online sales. Shipping and handling, higher returns, and lower prices lead to lower margins on online retail sales. The lower costs from not having to maintain an actual store network with real estate and labor costs is offset by these costs which can run as high as 25%, according to industry analysts.
Lower margins of retailers for online sales compared to brick and mortar stores
12/02/2014
Kohls margins for online sales are 4% compared to 10% for in store sales. Wal-Mart is losing money on online sales as it builds a online retailing presence. Generally the cost of shipping, higher returns and lower prices, lead to lower margins for retailers.
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