Oct
Why is it so much cheaper to buy online?
Filed Under (Uncategorized) by on 27-10-2009
You’ll probably have noticed that high streets are getting a lot quieter these days. Most corner shops have closed down except the ones which just sell the essentials and even massive chains like Woolies have disappeared off the high street. Why? It’s because it’s so much cheaper to buy online.
If you think about all the costs associated with running a shop: payroll, tax, national insurance, rent, business rates, insurance, gas, water, electricity…it all keeps adding up, and all those costs get added onto the cost of what you’re buying. Now thinking about an online shop: you have the cost of the website, Search Engine Optimization, postage…and that’s about it! Prices are on average about 20% lower but savings can be even higher.
The sheer competition within the market is also helping to drive costs and therefore prices down. Any inefficiency is being removed until we’re left with high quality, cheap products and services.
You then have to wonder why anything is still sold in shops?
