Why is it cheaper to buy in online stores than in physical stores?

 

By now we all know that online sales are changing the way we buy products. Many opportunities are being created due to the great demand from consumers, since in internet stores they find a greater variety at better prices.

 By now we all know that online sales are changing the way we buy products. Many opportunities are being created due to the great demand from consumers, since in internet stores they find a greater variety at better prices.

 But, why is it cheaper to buy in an online store than in a physical store? The reasons are several:

 The cost structure is much lower in an online store than in a traditional physical store. An online store can be managed from your office or directly from your home, so you save the store at street level, electricity, real estate tax, insurance, water, rent, etc.

• Personnel costs are lower. For having a physical store you must pay the payroll of the employees and cleaning services.
• We reduce to the maximum the cost of financing if you postpone the payments of your clients. Remember that in online commerce the collection is usually made before serving the order, so the number of unpaid is lower and your financing cost as well.
• Storage cost. Physical stores must have more stock than online stores because they need to have the product in the store to display it, however in the online store it is not necessary to have products on display, showcase or shelves.

 These cost savings allow you to serve your products at a more competitive price while maintaining your margin or even reducing it, because you will be able to reach many more customers than with your physical store.

 If you have a physical store and you are thinking of creating a cheap online stores in Ghana, I encourage you to start because both channels, online and traditional, complement each other perfectly, generating a more pleasant shopping experience for your customers. Setting up an online store now can bring you great joys in the future.

Read also: What motivates us to buy a product?