There are a lot of things that baffle us when we want to shop online. One of such things is the fact that we want to shop for an item online, only to find out that the price is cheaper than when we shop at local stores. We are also putting into consideration that the company will spend some extra money to ship the product to our location. Thus, you might be wondering why it is cheaper to buy products online than in local stores. This article will give the reasons why it is cheaper to buy jewelry from an online store than to buy from physical stores.
A major reason why buying jewelry from an online store is cheaper than buying from a local store competition. When you have to buy a product from a local store, there might be just less than 10 stores that have that product in stock or provides that service in your locality. In worse cases, you might be able to find up to 100 jewelry stores. However, when it comes to online stores providing that sell jewelry, you would be able to find thousands to millions of them that are willing to ship to your doorstep. Thus, the competition is higher for online stores than for local stores and they are all trying to use a reduction of prices as a strategy to gain customers.
Cost of running a business
The cost of running a business for online jewelry stores is generally lesser than the cost of running a business for local stores. For instance, local stores have to pay rent so that they can have business premises and were to sell from. However, several online stores do not have a physical presence. For those that have a physical presence, a single office or few regional offices will be okay for them to run their business and deliver to over 100 countries across the world. This is often not the case for local businesses as they would need over 1,000 branches before they can claim to be covering 50 countries.
Buying directly from manufacturers
The fact that most online jewelry stores buy directly from manufacturers makes it possible for them to buy at cheaper prices compared to when you want to buy from a local store. A local store is mostly a retailer who has had to buy from other wholesalers or manufacturers. Thus, the cost you would be paying to get the product online would be the same cost that they would have paid to have it delivered to them. Coupled with their expenses and the need to make a profit, the prices for local stores will be more. Some manufacturers create jewelry and sell at affordable prices online such as QP jewelry. You can read QP jewelry reviews to know more about them.
Some online stores do not bother to stock up on products. Dropshipping is becoming popular where you order from an online store that does not have a single of that product in-store. They subsequently pass the order to the manufacturer who sends the product to you and takes all responsibility including for shipping. For local stores, all products must be physically present in their stores in different varieties to attract customers and make sales.