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How has e-commerce impacted on price?

Updated: 11/11/2022
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βˆ™ 10y ago

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E-commerce keeps prices down and thus can reduce the profit margins of retailers. The idea here is that e-commerce introduces more competition and allows for one to comparison shop and buy things which have a lower price. However, it's not always the case - When you go to a brick and mortar store, you are to some extent buying into the convenience of being able to see and touch the demo models, being able to quickly ask the sales people for advice (which is usually mediocre), and being able to walk out of the store with that thing instead of waiting for it to be mailed to you. However, since competition through any means (other retailers, e-tailers) is a real threat, any retailer must keep that in mind and either provide better service or lower prices as a result.

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