After discussing the advantage of product variety, it is clear that online shop has a great ability to display huge volume products at same time, but the limitation also shows up, shop need to find a proper way to display there products, no misleading information but make their product shine. What attract both consumer and businessman so deeply in this industry? The price plays a key role.The cost of business runner and also the cost for consumer’s buying behavior all affect the price.

Online shopping behavior is smart on cost for both business and consumers. For a new online shop to enter, the preparation is much easier then a retail. The most important thing is to find a great location, the shop’s revenue depends on location heavily. A shop that near the community, CBD or large factory that with stable, large volume crowd will get more profit, but also, with higher cost no matter the business holder choose to rent or buy. It is hard to find a shop location, for alliance business, to start a new Tim Hortons shop, the franchises usually have to wait for one year to find a real good place for business. The cost for searching, having the location and the daily expense is a heavy burden, while for a online shop, the cost for location was to register a domain and find a web host. The decoration fee becomes the web design fee if the designer is asked. A good shop requires change decoration to follow the trend, and also, during the festival, to have some special setting is pivotal. But for online shop, the designer just have to new virtual material.The payment methods, is different between online shop and retail, for online shop, most payment are done through Paypal , Google checkout or other system, that means extra service fee generate. Also, the tax for online shop and retail is different. All those factor makes the cost different.

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Information from:http://onlinebusiness.about.com/od/onlinebusiness101/a/startinganonlinebusiness.htm