Why Online are Prices Lower Than Prices in Retail Stores?

There are many reasons why online prices are lower than prices in retail stores. It is necessary to keep it low too, as online shop price is dearer, customers would flock to the retail stores. Find below are the reasons why online shop prices are cheaper

  1. Eliminating Middlemen:

A middleman makes a profit for himself in retail trade or wholesale as he serves as a bridge between the manufacturer and the retail shop. This extra cost is not added on to the product by online shopping sites of toys, baby products and many other goods, as they interact directly without any intermediary and this leads to low price online shopping. 

  1. Spoilt for Choices: 

Online businesses are many and they get the best prices from the manufacturer. Such price is bound to differ marginally, and the customer can surf various shopping sites to get the lowest online shop price. Customers who are aware of this do extensive price comparison to gain low price online shopping. 

  1. Infrastructure Requirements:

Online businesses need not spend on infrastructure costs like retailers who have to build in with lime and mortar. Neither are there maintenance costs. This contributes to reduced prices online when you compare retail store prices. In fact, the best price retail store cannot match the best price online shopping sites. 

  1. Advertising: 

Advertising and marketing by a retailer are bound to cost more than an online shopping site. Online businesses do it digitally and therefore, it is cheap too. The way retailers market themselves is expensive due to which they try to adjust the expenses by including additional costs for the products. Hence one can get the best price online shopping

  1. Discounts/Offers: 

Online businesses purchase more than retail shops from the manufacturers. In other words, they sell more too. This allows the online sites to get extra discounts and offers which they pass on to the customers. Retail shops do also get such discounts, but far fewer than the online sites and that’s why retail store prices are higher. 

  1. Direct Imports:

Many online businesses import from the manufacturers directly and thus avoid paying any middlemen commissions which results in low price online shopping. 

There are many other costs involved in shopping with the retail stores like petrol, parking fee, air conditioner cost, etc. which are indirect costs which are added to the retail store price practically. 

Best Price Online Shopping:

Apart from low prices of products when shopping online, one can use Apps over websites to get the best bargains which is known as best price online shopping. For example, you can choose your budget and use the app to find a variety of products for the same price. It is not a sale but one basket with many products in it at the same price.

The products which are available in this could be clothes for men and women, footwear, computer accessories, mobile chargers, kitchen utilities, watches etc.

The best price online shopping would have three price ranges at least which may be Rs.249, Rs.349, Rs.449 etc. The app is efficient and does not consume much of your computer resources.

Best Price Online Shopping Sites 

When one says Best price online shopping sites, there is an additional meaning to it. Any website can advertise a price and sell products at lowest of prices and become the Best price online shopping sites. Reliability and features provided play a vital role –

  • Website popularity which practically endorses the reliability factor.
  • Strong security should be available as we tend to display out personal information including credit card details and thus be protected from fraudsters.
  • Payment Options should be multiple and almost all modes should be acceptable.
  • Inventory holding should be large, so that we do not receive a ‘Out of stock’ message frequently.
  • Return/ refund policy should include shipping charges and the process should be kept simple and speedy.

Here are the Best price online shopping sites and these are ranked with the cheapest prices:

  1. who specialize in kitchen accessories, watches and other jewellery.
  2. who are specialists in mobile services including bill payment as well as retail selling.
  3. who are giants in selling fashion products including footwear
  4. where you can find electronic gadgets at the lowest price.

  Here is the list of online stores which are popular:

  1. Amazon which has almost everything you desire and something extra.
  2. Flipkart which is a number one competitor to Amazon
  3. Naaptol
  4. Homeshop18
  5. eBay
  6. Jabong
  7. Myntra
  8. Desertcart

Price of online Shopping

What is the online price? How does it compare to the retail price? 

When you decide to go online and purchase a product that is quoted on it , that price is known as the price of online shopping.

A few retailers do indulge in both retail business and online shopping where their products would be displayed, but the retail store price would be the same price of online shopping.

Some retailers do offer the online price if they know the customer well, in their retail shops. 

When retailers are engaged in both online and retail prices, and we are aware of it, you can compare retail store prices with their price of online shopping product to product. This would help you fetch the best price retail store which is best for you. 

Reasons why retail prices can never be lower than online prices and other service issues: 

  • Overhead Costs:

Online retailers save money on staff salaries, rent, etc. which helps them lower the price and one cannot compare retail store prices with it. 

  • Sales Tax:

Sales tax is always not payable, and it depends where you conduct your business from. 

  • Shipping Costs:

Shipping costs may be borne by the customer or the online retailer as the case maybe. In retail shops, a person collects it in person generally. 

  1. Mode of Payment:

Online shopping businesses would accept all payment modes but retail shop owners may or may not allow to have all of the payment modes.


The above passage clearly illustrates that online business is here to stay and retail businesses will stay as long as they enjoy the patronage of their faithful customers. But then, price differences should be marginal for staying loyal forever.

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