E-Commerce Is a Boon for Rural America, But It Comes With a Price
by: Laura Stevens
Sep 12, 2016
Click here to view the full article on WSJ.com
Click here to view the video on WSJ.com
by: Laura Stevens
Sep 12, 2016
Click here to view the full article on WSJ.com
Click here to view the video on WSJ.com
TOPICS: E-Commerce
SUMMARY: E-commerce is transforming rural America by providing small-town residents with big-city conveniences and the latest products. But serving these consumers is expensive for retailers and delivery companies.
CLASSROOM APPLICATION: The article informs students the effect of the shift in shopping by rural Americans from brick-and-mortar stores to online retailers.
QUESTIONS:
1. (Advanced) The article states that online retailers sometimes lose money on products sold to rural customers. Why would online retailers set their pricing and shipping rates that result in losses on products sold to these customers?
2. (Introductory) Which results in lower shipping costs: sales at traditional brick-and-mortar stores or sales by online retailers?
3. (Advanced) Is Wal-Mart's strategic move into groceries a response to the growth of online retailing? Are households who shop at Wal-Mart for perishable groceries more likely to purchases consumer products at the retailer?
1. (Advanced) The article states that online retailers sometimes lose money on products sold to rural customers. Why would online retailers set their pricing and shipping rates that result in losses on products sold to these customers?
2. (Introductory) Which results in lower shipping costs: sales at traditional brick-and-mortar stores or sales by online retailers?
3. (Advanced) Is Wal-Mart's strategic move into groceries a response to the growth of online retailing? Are households who shop at Wal-Mart for perishable groceries more likely to purchases consumer products at the retailer?
Reviewed By: James Dearden, Lehigh University
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