The problem with selling online, whether on Amazon, eBay, or your own website, is finding merchandise you are able to resell for a fair profit guide to reselling on amazon. You also have to be aware that competitors will see your selling prices when you list merchandise for sale. They may then lower your prices. You only choice is to reprice and undercut them. This is possible with re-pricing technology. This software is almost guaranteed to be the same as your competitors. Software vendors play both ends against each other. So the merchants start a nearly suicidal race at the bottom.
Online shoppers often search the Internet for the lowest prices on the goods they need. Most online shoppers are smart enough to calculate the shipping costs and the actual item cost before placing an order. There have been many ads that advertise low prices for items with outrageously high shipping and handling costs. Apart from the shipping costs, the company’s reputation/feedback as well as the speed of delivery are important considerations. I assume most online shoppers do the exact same. I, too, look at the return policy of any company I buy goods from online.
My view is that online competition requires you to ship faster than your rivals, offer a better and more flexible return policy, and sell cheaper. You can also compete by offering the same price or even slightly more for your products. You don’t have much control over the shipping location. Sometimes buyers will purchase merchandise from places closer to them, believing that they’ll receive it quicker.