The online service environment is similar to the traditional brick and mortar service framework. Above all, the customer must trust the retailer. But, because of its extensive reach and high level of interaction, a Web retailer can help provide better service, better information, better support and help develop a closer relationship with the customer. In the present retail environment, branded-goods manufacturers employ restricted distribution in a territory, relying on location to reduce price competition among retailers and ensure retailer cooperation. Online, customers may reap the rewards of the price war that national brands may wage.
Retailers using private labels have less ground to lose online.
If a Web retailer cannot provide these features, they are on the way to losing a customer.