"On the other hand, by going online, a small shop might be able to expand their inventory, acquire parts at a greater bulk discount, lower overall sales prices, keep employees busier, dump dead stock, and overall improve service. "
Gotta have the mula or credit to buy the extra inventory to get deeper discounts. Not many small shops have those options. I do know several owners that have amped up their online game. One is very successful, however he does it completely different from the others. If the vendors caught on to what he does, they might yank their brands, well except for Fuji. They already know. The other two are struggling to make it worth the effort, but they have moved almost all the dead inventory that was written off years ago. Outside of that it is not profitable for them.