Cost reduction analysis in the online retail as compared to the classic retail

Abstract

The industry of retail has been segmented by new technologies, but the financial performance of every segment is far from explaining the market share. An exploratory study is necessary in order to explain the appeal for entrepreneurs. A comparison between two new forms of retail is used to understand the business models in this industry. Due to the fact that the maturity of the new segment of retail is different in various countries, the study cases focused on some leading firms from USA, China and Romania ) are important to design a probable trend for the online commerce. General theoretical benchmarks, validated by current practice are used in case studies, as well as innovative approaches and wellknown examples of successful retail companies.