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The advantage of direct sales and build-to-order production is the low level of inventory, which does not build up in the channel and lose value before it can be sold, and new products can be introduced without having to clear out old inventory in the channel. Customers pay for the final product before Dell pays suppliers for the parts that go into the PC.
Dell's launched its website www.dell.com in 1994 that lead the commercial migration to the internet. But its e-commerce capability came two years later in 1996. The following year, Dell became the first company to record $1 million in online sales...
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