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It seems like a quick and easy way to boost your profits, no? And it is — as long as you follow these simple rules first. Seim: I think so. In particular, it suggests the big other competitor they have in online is Walmart. One reason why Walmart has been relatively successful is because they have a similar, already established distribution center network that allows them to get to consumers quickly. They could try to also integrate stores and online better. I think a lot of what we find would apply to other large chains that try to enter the online market. I think it’s maybe less applicable, but what was interesting to us was to think about what that might mean for smaller online retailers. A lot of the original Walmart debate was about what it does to localities and mom-and-pop stores. In many ways, these recent developments mirror some of those patterns in online markets now. I wouldn’t say necessarily that there are many lessons to be drawn for the smaller retailer, but I think it’s just one explanation for why the smaller retailers are struggling to compete against a company like Amazon.
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