The first of the four is Virtual Merchants. A virtual merchant generates all or almost all of its profits using websites. However, what a virtual merchant saves by not having a physical location, they could easily lose if they don't grow fast enough. Any company that wants to operate entirely on the web needs, among other things, a lot of advertising to get going. Most shoppers already have sites that they are familiar with and will primarily use, and only 5-20% of shoppers will switch to a new site (Morrison, 2014). Any virtual merchant must be a solid business from the start, with easy and smooth accessibility and usability, as well as sufficient and consistent customers