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Low Cost of Entry

The barrier to launching a Web store is extremely low when compared to opening up a significant traditional retail store or mail-order operation. Although major Web stores with significant site infrastructure, staffing, and content can cost millions to launch, such a cost is not always necessary for, or a guarantee of, success.

Successful sites like Tronix can be built and run for less money than almost any other type of store. Larger sites can also be interesting. Disney has poured millions into its Web site, which quickly began to generate sales equal to that of four traditional Disney Stores. Disney executives expect the Web store to grow significantly. At the low end, opening a store on the Web can cost as little as $10,000 to $20,000. But keep in mind that not only does this make the Web an enticing place to open a store, it also means that new competition may arrive at any time.


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