How does online retailing typically differ from traditional retailing?

Online retailing typically differs from traditional retailing in terms of operating costs. Generally, online retailers can achieve lower operating costs because they do not require physical storefronts, which entails expenses such as rent, utility bills, and maintenance associated with brick-and-mortar locations. Instead, online businesses can operate from warehouses or distribution centers, streamlining inventory management and reducing overhead costs. This advantage often enables online retailers to offer competitive pricing, broader selections, and improved convenience for consumers.

In contrast to traditional retailing, higher customer interaction is often more prominent in physical stores where sales associates are available to engage with customers directly. Limited product availability and increased physical space requirements are characteristics associated with traditional retail, where inventory must be physically present in-store, and space constraints can limit the variety of products offered.