Challenges faced by online retailers in identifying the cost, setting price

Your report should address the following three issues as a minimum;
? What costs should be included in the consideration of the viability of a product – and which, if any, should be ignored?
? What cost drivers would be appropriate for use by an online retailer ? and what practical difficulties might arise from their use?
? Should an online retailer use cost as the basis for pricing decisions ? and what are the reasons for your answer?

Online retailing is becoming an increasingly competitive marketplace both in respect of sales prices and in terms of cost control. You are required to produce a brief report that discusses the challenges faced by online retailers in identifying the cost of their products and setting appropriate prices.
Your report should address the following three issues as a minimum;
• What costs should be included in the consideration of the viability of a product – and which, if any, should be ignored?
• What cost drivers would be appropriate for use by an online retailer – and what practical difficulties might arise from their use?
• Should an online retailer use cost as the basis for pricing decisions – and what are the reasons for your answer?
Your report should include;
• Evidence of a literature review about pricing and cost control from the management accounting literature. You should reference your citations using an appropriate system, such as the Harvard method.
• Evidence of research from public sources about the online retail industry and the pricing and cost control challenges that it faces. These sources may be from newspapers, electronic databases or from the companies within the industry themselves. You should ensure that you attribute the sources of your information fully and that you identify any concerns you have with the quality or completeness of the information that you have obtained.