What is the impact of the internet on product pricing?

Answer 1

In my opinion very little because the cost savings is usually overshadowed by shipping charges.

Answer 2

I think it now has a very large impact in dozens of ways, from producers around the globe, competition, a vast array of potential purchasers of products. Obviously it's not the only factor in regard to a products price, but one can't deny that the availability of information to many more parties adds many more factors in determining a final price at purchase.

Answer 3

My theory is the prices are lower for goods sold online for three main reasons: 1. You are paying for the shipping, they don't have to worry about the transfer to their many different stores. 2. Items can be ordered when not yet in stock (they can pre-order things) and they are not having to pay for something to be on a shelf while they are not sure whether it will sell or not. 3. A wharehouse is sufficient, they do not have to decorate and put posters for products and specials everywhere, just website maintenence.

Answer 4

Cheaper to buy on the internet, than in a store. Low overhead makes this possible. As far as I know, I could be buying stuff from a fat naked guy sitting in his living-room, but the products are the same as local stores.

Answer 5

People can easily find the better deal.
Many items are cheaper online than offline. (books, cds ect)

Most studies have found lower price levels online than offline, even when shipping and other costs are included.

You also have to look at ebay and similar sites.
People buying bulk and selling cheaper on ebay.
Or selling more expensive like xbox's ect.

Answer 6

I don't know, but I don't want the internet to get involved in my money, just be fun and informative.

Answer 7

Only for the good.