...My local model shop in Leeds now offers a good internet service this may be the way forward for model shops to help bring in new business....
It is IMHO the best way forward. There are some model shops with an online presence, these are easy to trade with online, and easy to find the address when I want to visit the bricks and mortar shop (on my rare trips to UK).
Sadly, many small traders don't understand the importance of internet sales and ignore the management of their own websites, ignore emails etc. and then complain that business is bad. I have even turned up at one traders, after trying to contact by email for a week, to find he was closed for the morning. I had to be somewhere and left with my money. There are other model shops that don't do online.
The internet is a boon to small businesses. It means that a store in Cornwall (not the most populous of places) can have customers from all over the UK/World. I do a lot of online shopping now. Perhaps at 50 years old I am one of the newer people to the hobby, but I find some of the older practices are a barrier to me spending my money.
Examples of good etraders.
ACTion - Dave really knows how to handle eCommerce, websites, and customer enquiries from novices. I think he is a good example of what can be done.
Sailsetc.com - The same
Not just models. - One of our local butchers started selling sausages and pies online. His business became well known and he now supplies big high street names with his fare.
BTW I do buy most of my modelling stuff online, but not from Ebay, I support the dedicated traders where I can.