the challenges faced by online retailers in identifying the cost of their products and setting appropriate prices

Online retailing is becoming an increasingly competitive marketplace both in respect of sales prices and in terms
of cost control. You are required to produce a brief report (no more than 1,000 words in length) that discusses
the challenges faced by online retailers in identifying the cost of their products and setting appropriate prices.
Your report should address the following three issues as a minimum;
? What costs should be included in the consideration of the viability of a product – and which, if any, should be
ignored?
? What cost drivers would be appropriate for use by an online retailer ? and what practical difficulties might
arise from their use?
? Should an online retailer use cost as the basis for pricing decisions ? and what are the reasons for your
answer?
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