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Direct-to-home has a supply chain cost three times higher than a store-based model... It's because it's really expensive ... It’s a very expensive model and it’
by Johnny555 10y ago
Direct-to-home has a supply chain cost three times higher than a store-based model... It's because it's really expensive ... It’s a very expensive model and it’s not less expensive than the store-based model
I don't doubt that's true, but you're not going to get me into the store, so if you want my business you're going to have to ship my purchase to me, so figure out how to make it sustainable. Regardless of how much more expensive mail-order is, it's going to become a larger part of retail business.
I suspect that it's much worse for merchants that have a brick and mortar presence - they are paying a lot of money for those stores, and the incremental cost of serving one more customer is virtually zero, while there's a material cost to pack and ship a package.