Online sales increase outbound transportation costs when compared to the performance of traditional brick and mortar retail stores.
Step-by-step explanation:
The cost that is associated with all the activities of making the transport of goods and services from the point where it is manufactured to the point where it is consumed. There are two types of cost associated with the transportation of goods and services such as Inbound and outbound transportation costs.
Inbound transportation cost refers to the cost associated with the transport of goods and services into the location where the production takes place. It may be raw materials or any thing. The outbound transportation cost is associated with the cost that is incurred for transportation of goods and services outside the business location. It may be delivery of any finished goods. Thus, online sales increases the outbound transportation costs when compared to the performance of traditional brick and mortar retail stores.