An information and analytics digest for everyone going abroad or staying home
Shopping

Why is it profitable to shop online?

More choice – why?

Regular stores try to locate in crowded places closer to the city center, where the cost of renting each square meter of retail space is very high. These economic reasons force them to seek a compromise between storage cost and the quantity of goods. Therefore, only a few can afford to compete in assortment with online shops.

Online stores, on the other hand, can use warehouse facilities even outside the city, where costs are naturally tens of times lower. Consequently, for the same price you can have tens of times more storage space, and part of the goods can be stored at suppliers' warehouses, which requires no cost at all.

Cheaper – not worse

Pricing is influenced by the cost of rent and maintenance of premises, salaries of service staff, and advertising expenses. So it turns out that for virtual shops, rent costs are much lower than for real ones, they don't require as much staff, and consequently, their production costs are several times lower. Setting up retail space of a conventional store is not cheap. At the same time, creating an online store can even be free. And finally, advertising on the Internet is much more affordable than traditional means of attracting customers.

All this allows online stores to reduce prices, and this reduction can range from 10–15% to 50–60%!

No need to go anywhere – they'll bring everything

Of course, there will be people for whom going shopping is a kind of entertainment, but most would prefer to spend their time and money (on travel) on something more exciting.

You can order goods on the Internet at any time of day – say, during your lunch break at work, or late in the evening, and the delivery service will ensure you receive the goods at a convenient time for you. You can also receive the order by cash on delivery via mail, through various courier delivery services, including from another country.

Online stores are informative

Just as a regular store is built of brick and cement, a virtual shop is built of information. And therefore there is a lot of it here – starting with detailed product descriptions and ending with customer reviews. And this is another significant advantage of online stores. In addition, as already mentioned, on the Internet itself you can easily find the necessary information about the store itself, more detailed information about products on manufacturers' websites, and user reviews.

You can also use special services for comparing prices and various conditions (for example, regarding delivery or warranty) of many online shops, because stores that are tens of thousands of kilometers apart are located a few mouse clicks away on the Internet.

So do your shopping online, ladies and gentlemen – save your time and money!

_