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Locations of online stores

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Nowadays, there are so many online stores. Is location still important? If an online store needs to deliver large quantity of goods (e.g. amazon.com), how would the store chooses the location or distribution center? Can you give an example?

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Locations of online stores are discussed.

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The number of online stores has grown in recent years due to the prevalence of the internet. Location is still important to online stores which need to deliver a large quantity of goods. As an example, store that deliver goods mostly to the United States probably should not have a physical location only in Asia, as that would greatly increase its shipping costs.

Amazon.com's headquarters are located in Seattle, Washington. The company has offices, fulfillment centers, and customer service centers located all over the United States. By having multiple locations, it can fulfill orders more quickly, as well as take advantage of local labor. A single location may not have all the personnel needed to process the orders. Certain job positions may require skilled workers. In such cases, having multiple locations may help the store to find all the necessary workers to fulfill orders. Another aspect to consider is that it may be cheaper to employ workers in certain areas than in others.

A single location may not provide the warehousing space necessary to store the inventory required by a company that delivers such a large quantity of goods. The company may need to have multiple distribution centers to meet the needs of customers who ...

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J Pye, MSc
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  • MSc, California State Polytechnic University, Pomona
  • MBA, University of California, Riverside
  • BSc, California State Polytechnic University, Pomona
  • BSc, California State Polytechnic University, Pomona
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