A decade ago, many people were doing almost all of their shopping in-store. However, the tide shifted and more and more people are realizing they can get almost everything they need online—and at a steeper discount (in fact, roughly 13% of all retail sales were conducted online in the 3rd quarter of 2021). Read on to learn why you can find better deals online.
Lower Operational Costs
Think of everything that goes into a brick-and-mortar location. Rent, water, electricity, employee salaries, and shrinkage loss all add up quickly, costing retailers thousands of dollars a month per location. Furthermore, stores need to bring in a limited amount of product to ensure their stock sales. It’s a delicate balance to keep a brick-and-mortar location profitable. With an online store, retailers need to pay for their wares, warehouse employees, and shipping—resulting in a steep reduction in operational costs. Most online retailers find they’re spending pennies on the dollar compared to what they’d spend with a physical location, and they pass those savings onto you. Finally, more and more online retailers are finding they don’t need to pay for as many customer support agents, relying instead upon the best chatbot platform, marking a further reduction in costs.
Stores can only hold so much product, and they need to push that product quickly and at full price in order to make a profit. This causes stores to focus almost exclusively on established best-sellers rather than bringing in local or startup companies’ goods. With an online store, businesses aren’t competing for shelf space. Businesses can then keep a wider variety of products for longer, giving you a better selection for less.
No Middle Man
Brick-and-mortar stores are the middleman between you and the product you love. When you purchase something in-store, the majority of the sales price is actually going directly back to the store. With online shopping, you can connect directly with the manufacturer, getting the product at a greatly reduced price.
Due to the reduced costs of online shopping, stores are able to offer steeper sales discounts. While in-store coupons are becoming rarer, most online retailers have a sale at least once a month in an effort to make room for new inventory. These online discounts have become so popular that third-party websites devoted to getting buyers the best deals are now commonplace, allowing buyers to comparison shop and clip a coupon code with just a few clicks.
Online shopping is quickly becoming a mainstay in most American homes, partially because of the deep discount’s buyers can receive when making purchases online. Due to low operational costs, more products, no middle man, and more sales, online shopping commonly gives consumers the best prices on their favorite products.