B&M sellers will always cost more as they have more overhead. They could be paying $2000 per month alone for rent. Then add in hydro, heat, wages, payroll taxes and so on.
Some online sellers could be operating out if their basements where it's a tax deduction, not an expense.
Choice of location, etc. is all on the Owner and their planning. The basement operators still have expenses. Site expense, processing fees, labor, etc.
You would be surprised at just how similar cost can be.
Started my business in a Basement, out grew it quickly and open leased a better location. Out grew that one and located another 4x larger within 6 months.
Oddly, my pricing did not change..........unless product Cost increased.
Typical sales in a niche business of this type are 2x cost. A rather common practice with lower cost items. As cost increases markup generally suffers. However, $189 for an item costing(wholesale) $100 is not unreasonable in practice.
Customer Demand is also part of the sales formula.
Sorry for rambling, but a B&M charging $99 for a (wholesale) $26 item is a rip off.
