Industry Analysis & Industry Trends
Thanks to Americans' increasing move to online retailers, the industry has been growing strongly. It has faced some challenges, though, due to slowed residential construction and lower home improvement spending during the recession. Also, industry participants have had to continually improve their websites in order to compete with external competition, such as from physical retail stores. Despite these challenges, profit has continued to grow because of stronger supply chains and expanding economies of scale. As construction markets improve and shoppers continue to move online, industry growth will strengthen.... purchase to read more
Industry Report - Industry Investment Chapter
The Online Hardware and Tool Sales industry has a medium level of capital intensity, with most investment requirements in the form of warehouse space, computer equipment and warehouse staff. The average operator will pay $0.21 on capital costs for every $1 of labor expenditures in 2012. Companies in the industry spend more on wages than they do on equipment, as the value of fixtures needed to run the business is marginal compared to the man-hours needed to manage websites and sales.
Online shopping operators outlay capital on technology to establish, implement and maintain their websites on which consumers place orders. The establishment and maintenance of databases require computers, printers, software programs for electronic payment system, firewalls and more... purchase to read more