Challenges faced by online retailers in identifying the cost, setting price Custom Essay

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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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