Today, it has become clear that few of the initial assumptions about the future of
online retail were correct. Also, the structure of the retail marketplace in the United
States has not been revolutionized. The reality is that:
• Online consumers are not primarily cost-driven—instead, they are as branddriven
and influenced by perceived value as their offline counterparts.
• Online market entry costs were underestimated, as was the cost of acquiring
new customers.
• Older traditional firms, such as the general merchandising giants and the established
catalog-based retailers, are taking over as the top online retail sites.
• Disintermediation did not occur. On the contrary, online retailing has become
an example of the powerful role that intermediaries play in retail trade.