S&Hcharges to customers (Tedeschi, 1999).While ideally an
Internet retailer aspires to obtain high margins on both
components, competitive pressures inevitably limit this
option. Some products face severe price pressure from
competitors, and the Internet retailer may be forced to seek
profit through the less readily comparable S&H fee. In other
cases, product characteristicsmake an itemrelativelymore
expensive to ship, so the retailer mayseek to compensate by
increasing product margins.