Why do Internet retailers have lower operating costs than brick-and-mortar stores?

Question

Multiple choice question.

Government funding

Fewer salesclerks

Large storefronts

Better accounting practices

Answer 1

The correct answer is Fewer salesclerks.

Internet retailers often have lower operating costs because they typically require fewer employees, such as sales clerks, compared to brick-and-mortar stores. This reduces labor costs significantly. Additionally, they do not have the same overhead expenses related to maintaining a physical storefront, such as rent and utilities, contributing to their lower operating costs.