Is shopping online cheaper?

The popularity of online commerce has grown dramatically in recent years, and there is no shortage of qualities that explain the preference of countless consumers, from the convenience of being able to shop from home to the immense variety of options that can be found.

There is also the perception that it is often possible to find lower prices. This article is about that perception: to what extent it is true, the reasons behind it, and how InPost can help you save money and get the full benefit of this way of shopping.

Saving on the internet and in traditional retail

As relevant as the issue of prices themselves is the issue of the different ways to find attractive opportunities in both channels.

We should note that comparing prices is easier on the internet, where it not only does not involve physically moving from place to place, but we can also rely on the help of apps and websites dedicated to finding and comparing the best prices.

Likewise in favor of digital commerce is the fact that the great diversity of options makes it more likely to find what one wants, at the price one wants. (We should warn, however, about the danger of deals that seem too good to be true; on that subject, read our article on safety in online shopping.) This includes the huge market for second-hand items.

On the other hand, it is important to note that there may be unique items or exclusive promotions in a physical store that are not available online. However, the main advantage of traditional retail is that it eliminates the cost of shipping the order. At the end of this article, however, we will see how it is possible to save on shipping costs.

Differences in product types

Generalizations about forms of commerce should not lose sight of the fact that product type is an important variable. It is common to find, for example, electronics at good prices, but food—whether in the case of takeaway or other purchases—can be more expensive than eating on site or going to the grocery store.

What is showrooming?

In recent years, in some countries, there has been growth in the practice of using a physical store to examine an item up close before acquiring it through the internet, to take advantage of a favorable price. This practice, which came to be called showrooming, has been a source of frustration for some stores.

Of course, the reverse approach is also common: using the internet to obtain supplementary information about an item before buying it in a physical store.

Factors that contribute to making e-commerce cheaper

It is true that, in general, e-commerce prices tend to be lower. These are the main factors that explain this fact.

Indirect costs

An online store does not need to have its products displayed in a storefront, so it can save a lot on rent and store maintenance. Typically, it also requires fewer staff.

Promotional strategies

Although strategies such as coupons, discount codes, and loyalty programs are equally applicable to traditional retail, they may be more common and more prominent online. Included here are the apps and websites that search for and notify users about coupons, ensuring that the buyer takes advantage of the best prices available to them.

Inventory

Selling from the warehouse means greater flexibility in inventory management and being able to keep items available for longer before removing them from the “shelves.” This means it is often possible to find an out-of-season item at good prices. Greater ease in clearing inventory can also allow companies to operate with lower profit margins.

Effective marketing

Digital marketing methods, such as SEO or advertising on social media, tend to be cheaper and more effective than traditional marketing.

Direct selling

On the internet, it is easier for the producer to sell directly to the end consumer, without the need for intermediaries.

Competition

Competition in the online world is intense and free of geographical barriers, prompting stores to offer attractive prices.

Saving on shipping costs

We have seen how most variables contribute to making e-commerce attractive in terms of prices. On the other hand, the added cost of online shopping, compared with traditional retail, is the shipping of the order.

InPost focuses precisely on providing an economical, reliable parcel transport service perfectly designed for e-commerce. Our approach is based on out-of-home delivery through a hybrid network of pickup points.

This strategy favors an unbeatable price-quality ratio: click here to see our rates, which you can take advantage of the next time you shop with a store like Vinted or Shein, or when you need to send a parcel.