Online Shopping

Topics: Retailing, Shopping mall, Online shopping Pages: 1 (344 words) Published: April 24, 2013
Internet shopping is faster, convenient, and generates better deals. The concept of home shopping has been here for a long time in the form of commercial catalogues and television infomercials. But the concept of home shopping never became a widespread phenomenon until internet came due to internet’s vast potential that the pre-internet technologies lacked. Internet shopping has become an integral part of our daily lives and has been adopted by every major brick-and-mortar retailer in the U.S. Internet shopping has even helped certain companies in achieving competitive advantages because it enables them to get rid of intermediaries and sell directly to the customers. There is a higher probability of finding better prices on the internet than in shopping malls. Many internet companies operate as online retailers only which means they don’t have to pay any intermediaries such as distributors and they don’t have to hire sales people. Thus, they can pass some of the savings to the customers by offering reduced prices. Internet also enables the customers to do price comparisons in an instant, thus, they can buy from the online retailer that offers the best prices. Internet companies are aware of this thus, they price their inventory competitively. Moreover, companies get bigger audience of their products online so they often put clearance products on sale and offer other deals to clear out inventory faster. Moreover, most customers are also able to save on taxes because taxes are applicable only if the online retailer operates in the same state as the customer. Shopping mall retailers have higher costs because not only they have to invest in physical property but they also have to hire sales people and managerial staff. Their audience is only limited to the number of visitors in the shopping mall at any time. Thus, they are forced to generate higher sales per customers which mean higher prices on the average. It’s also more expensive for the visitors to compare prices...
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