There Is Less Risk Involved in Starting an E-Commerce Only

question 161

True/False

There is less risk involved in starting an e-commerce only business than there is in trying to add e-commerce to a traditional (bricks-and-mortar) store.

---

Definitions:

Storage Costs

Expenses associated with storing a company's products or materials until they are needed or sold.

Insurance and Taxes

Mandatory expenses that include payments for risk coverage policies and contributions to state and federal governmental bodies.

Restocking Costs

Expenses associated with replenishing inventory, including purchase, delivery, and storage costs.

Opportunity Cost

The cost of foregoing the next best alternative when a decision is made to choose one option over others.