The traditional retailers and business owners is facing threat from online shopping websites. The increasing online shopping trend in the country especially among the youths has affected the busines of book stores, camera and mobile phone retailers. The e-commmerce business is on the path of prosperity and more and more people irrespective of age is visiting online websites to get their much wanted books and electronic gadgets like mobiles, digital cameras etc. The online retailers are offering more discount than the traditional retailers.
The traditional retailers are wondering how the shopping websites are offering this much discount especially for the books. The publishers are giving books to retailers with a price reduction from 30% to 50%. This difference in price offered by the publishers is actually the profit generated by the book retailers. The traditional retailers who have got a shop in the city which has been taken on rent will not be able to offer much price discount for the customers but the online retailers who dont have a rented shop can offer that discount in their price. More than that the established online retailers used to purchase books from the publishers in bulk so they are getting the books at a reduced price. As the online retailers has’t got retail physcical presence, they dont have to spend money as rent and this amount can be transfered to the customers as discount.
One of the executive of the a established online retailer said that the fact is different and discounts are offered by the new entrants into the industry who wants to secure their position in online market. Even if it is books or electronic goods the shipping / courier charges are associated with online shopping. Even though the online businesses doesn’t need to have a showroom other things like corporate office and godowns are needed. The rent associated with that and salary for staffs has to be paid for running the business.
The major online shopping website in india is shipping about 16000 books in a day and 250 laptops & 500 mobile phones in a week. As the company is shipping this much products in a week discount will be offered by courier companies. As the trend of online shopping is one the rise, not all the people have turned to online shopping. Those who buy books regulary used to got to a traidtinal book retailer and spend some time by looking through the books which are available and reading the preface of the books before buying the required book. Those who dont want got to drive to the book store and looking to get a discount of about 50 or 100 rupees for a particular book will order their books online.
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