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They have a larger number of potential customers because people anywhere can buy from them.

1. They can reach larger numbers of customers without geographic restraints.

2. They may not have to pay sales tax.

3. They aren't limited to store size in the number of products they can sell

4. They may not even have to hold inventory, if their supplyers will drop-ship to customers directly

5. They can change prices in seconds. Or evin on a customer-specific basis.

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Q: What best explains why online retail companies have an advantage over regular stores?
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