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Online retail companies have lower costs because they don't have to pay for a costly "main street" location, or expensive, high-traffic real estate with a store front.

They can also save costs in personnel by not needing floor and window displays continually updated and replaced, not needing to stock a sales floor or put things back in order after customers rummage through the shop.

Additionally, online companies benefit from worldwide access to buy from their shop through the internet, vs. a local retail store who just has local customers, or those visiting their community.

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