When we go shopping, we do the picking function, shipping function, and outbound transportation for the retailer. Think about online order fulfillment costs. Considering the scale of Amazon, market distribution channel trends, the cost of picking and shipping individual small items, the echo, drones, robots, etc., will online fulfillment centers continue to expand? Will they replace all or most stores in the future?

It just doesn't seem efficient to have small items delivered to our doorstep. The "last mile" of delivery is generally considered to be expensive. Consider the costs of retail store supply chains and online fulfillment centers. What are the key costs for each, and how do the two channels stack up in the long term? Of course, Walmart, Target, and Macy's have online fulfillment channels too, so this discussion should not be limited just to Amazon.