3.1 E-tailer

Online retail shops come in different sizes, from the giants Amazon and Alibaba, to small and specialised online shops selling specific products such as parts for furniture, rare music discs, or handcrafted clothes.

The source of revenues is the sale of goods. Strong entry barriers make success very difficult: establishing a successful e-tailer requires building a strong brand and targeting a precise customer that may enable the e-tailer to target the offer to specific needs. Other elements that need careful management are expenses and inventory: they should be kept low to reduce the need for capital.