challenges faced by online retailers in identifying the cost, setting price

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 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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