I've always wondered if companies like Webvan and Kozmo that bypassed the whole 'shipping' thing by driving the shit you've bought straight to your door would have worked. That is if they actually priced their product intelligently (minimum order, a reasonable delivery fee, not selling below cost, etc.)

I remember when Prodigy first launched (1990) that they had a deal with the local grocery stores where you could shop for groceries online and they would deliver to your door in a matter of hours. It didn't last long, though I don't remember if it was just because the whole "online" thing was too new for Joe Blow or if costs were too high.