Final answer:
A major logistical challenge for internet retailers is managing the supply chain on a global scale. They need to handle shipping, maintain supply integrity during crises, and adhere to labor rights, while balancing costs and customer demands.
Step-by-step explanation:
In terms of logistics, a far larger problem for internet retailers compared to traditional retailers is managing the supply chain for a global customer base. Unlike traditional brick-and-mortar stores, online retailers must tackle the complex logistics of shipping products across long distances and international borders.
The advent of the internet has expanded market competition and increased customer reach, which in turn pressures internet retailers to optimize their supply chains. Challenges include ensuring effective transportation methods, maintaining supply chain integrity during emergencies, and committing to fair labor practices.
Technology has shifted market structures, enabling small businesses to reach beyond local borders but simultaneously creating potential for larger firms to dominate due to economies of scale and wider consumer bases.
Moreover, with improvements in communications technologies, there's a significant impact on both consumer and business-to-business markets.
Consumers can order products from anywhere, and business supplies can be sourced globally, creating a network of supply demands that internet retailers must efficiently manage, balancing costs, logistics, and customer satisfaction.