Your store scenario isn't true at all! It does not cost about twice as much to get two boxes of cereal into a store as one box. The same shipping economies ar

Your store scenario isn't true at all! It does not cost about twice as much to get two boxes of cereal into a store as one box. The same shipping economies are in play here. It actually costs less per box to get it into a store because they will bring in a pallet at a time. The real cost is the fact that you have a building and all of its costs with employees and all of their costs, etc. Shipping anything to Alaska is more expensive that to New York whether it is one box of cereal or a pallet. The difference is that the price for a box of cereal in Alaska will have that priced in vs the box in New York. The same can be done for online retail...except people won't understand it and get pissed and try to change their location reporting to try and get a lower price based on where they are located. You see, people don't view online shopping the same way as they view physical shopping. People will need to be reconditioned about online shopping now that we have the technology to do location based pricing thanks to geolocation reporting and other factors (like getting a zip code up front) that were not available when online shopping first came about.