Al Farid Wood and Metal Trading Company
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Why do online product shops offer lower prices and extra discounts?

Why do online shop product stores offer lower prices and extra discounts? Dubai, UAE

Have you ever noticed products in  online shop are cheaper than those off-line vendors trade? This is true for any goods, with air conditioner copper pipes and aluminium foil as no exception.

Have you ever wondered why you can buy online, for example, AC Copper Pipe size ¾ at the price twenty or even forty percent lower than in the shop near you? The answer is as simple as a day. An online discounter can afford to dump the price while still offering good quality.

Online shop expenses

One of the most obvious reasons is lower expenses, including overheads. Let’s list common expenses an off-line shop that trades copper pipe or cooking foil in Dubai has to deal with:

  • Premise rent and housing fees,
  • Utility bills,
  • Trading equipment costs,
  • Staff salary.

Obviously, a company includes these expenses in their final prices. Therefore, the lower the expenses, the lower price could be offered.

First, online stores don’t need to rent premises for the physical shops and pay relevant utility bills and government housing fees. Second, they do not need to buy trading equipment to display their goods for the customers. At last, they do not need to hire staff to work on the spot.

As a result, such stores can set lower prices on their goods.

Margins on goods

 

For example, at Al Farid Wood and Metal Trading Company, we practice the turnover approach, according to which we target to sell higher volume. As a rule, online companies follow this approach. They set a minor margin on their products. Yes, the profit per item is low. However, a low price attracts more buyers and sales growth. In its turn, this results in higher profit when considering the turnover as a whole.

To sum up, online shop business always sticks to feasibility studies and strives to find a win-win strategy that benefits both parties – a company and its consumers.

Please check our online shop for available products –https://tradingwm.ae/shop

More info about online shopping https://en.wikipedia.org/wiki/Online_shopping

 

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