Question

The fixed costs of WeBuy&Sell, an e-commerce website, make up about 90 percent of the total costs incurred by the company. However, since its primary means of communication is web advertising, WeBuy&Sell has variable costs as low as 10 percent of its total costs. This allows WeBuy&Sell to earn high profits at a very low cost. According to the given scenario, WeBuy&Sell has _____.

Answer 1

The correct answer is high scalability.

Step-by-step explanation:

Scalability is related to the potential of a business to continue growing even with the same structure available. In the case of electronic commerce companies, their variable costs are minimal because their main activity is to send the items purchased by people, which is why they do not require hiring many staff, they do not manage storage costs because they are generally located in their own homes.