Why online shopping is cheaper than retail

This is one of the most widely asked question by an online shopper or someone who is new to online shopping that why (generally) online shopping is cheaper? Some say products are not genuine, they sell used products and few great minds say that these are custom seized products (really)! There are lots of reasons which are responsible for low pricing of the products.

There is nothing like that. All products are genuine on e-commerce sites (I’m talking about reputed e-commerce websites). The sellers on e-commerce are mostly those who have their shop and also join online portals to boost their sales. Any shopkeeper can join any e-commerce site to sell their products or even you can just set up a small warehouse to store your goods at home and run your business without setting up a physical store!

So now the question is why online products are cheaper (not every time)? The answer is very simple and logical. The sellers on e-commerce websites don’t need shop, employee, salesman to sell their product and all these saves their money and keep investment to lowest.They can sell their product from home too. Also there is no mid man who hikes up the prices. They have little profit margin as they have larger geographical coverage and they receive order 24×7.

And startups are profited the most as they don’t have to spend on setting up a physical store even the marketing and promotion is handled by these leading e commerce sites at very affordable price.

One of my friend joined as a seller on an e-commerce then you know how they are able to keep price below retail prices. All he has to do is get a computer, an internet connection and a printer. On receiving order you just have to pack the product nicely with invoice and keep it ready. The courier company will pick up the product from your doorstep. That is all! He would receive order 24×7 from anywhere in the world. It was responsibility of the company to dispatch the product to the customer.

Amazon, Flipkart, Snapdeal and other major e-commerce platform fund their sellers for discounted offers and these giants give some part of their own profit to customers to attract more new customers. Also there are sponsor offers like cashback from bank if transaction is made from debit/credit card or any digital wallet. All these factors contribute to low pricing of the products.

Have any question? let us know below in the comment section. Enjoy!