Wednesday, May 30, 2018

Online Retailers Need Lots of Products but Can Charge Higher Prices

Online companies are growing every year and some companies have met a threshold that allows them to function on a higher level. If you are starting a business you will want to ensure you have enough products to actually attract customers and keep them around. As a bonus you can actually charge a little more for these products than many ground based businesses.

Online retailers often offer higher prices than traditional brick-n-mortar stores and have advantages when offering an assortment of products (Koncar, et. al., 2016).

Assortment of Products: It is important to offer enough products to keep people interested. If you don't have enough on your site there is no reason for people to visit or to stick around. Many times people may be looking for one product and buy another. Likewise, you may find that more products create more interest for potential visitors.

Online Prices Typical Higher: This is interesting because I never thought it would be the case because brick-n-mortar has more overhead. However, you may find that there are fees to selling online and there are associated costs. The good news is you can command a little higher price. Remember that people can also compare your product price online.

Koncar, J. et. al. (2016). The assortment structure and the price levels as a factor of marketing channels. Ekonomski Vjesnik, 29 (3).



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