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Black Friday brings some interesting topics for discussion

“(MarketWatch) - If Internet sales on Black Friday rose 42% from a year ago, why did investors on Monday sell off the stocks of leading online commerce companies such as Amazon.com Inc. and eBay Inc.?” read full story 

As the competition for Holiday budget heats up between online retailers and brick-and-mortar retailers coming up with online promotions to move volume cuts into the bottom line. 

Why would investors want to sell their online retailer stock if the statistics are showing growth?

Brick and Mortar retailers are becoming much more savvy with their online marketing efforts.  Because of this they are making life more difficult for the wholly online retailers like an Amazon.com. 

In addition to the B&M’s grabbing market share they are also running online only promotions with price points that justify the sale based on predicted volume.  This cuts into the margin but the B&Ms are willing to take that risk to drive volume. 

This will also cut into the competition’s margin by forcing them to drop prices and run promotions to compete. 

As the competition continues to heat up with online retailers guess what else becomes more expensive?  That’s right… PPC Advertising