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BizReport : Ecommerce archives : January 27, 2015


In-store pricing versus online: Getting the price right at the right time

The ease, frequency and speed with which pricing and promotions can be updated in online stores means it is hard for physical stores to keep up, and that is affecting consumers' buying behavior, according to new research from Displaydata.

by Helen Leggatt

Today's shoppers want the best value possible for a product and they are prepared to take the time and make the effort necessary to do so. Such demand for value is changing shopping behavior and, as such, we see today such scenarios as webrooming and showrooming.

Almost three-quarters of U.S. shoppers (71%) webroom specifically to compare prices, according to Displaydata and 32% admit to showrooming to compare prices. Such behavior is causing headaches for physical stores that can not roll out changes to prices or promotions with the same speed as online stores.

esl.pngConsider this, while Amazon makes pricing changes 2.5 million times each day, physical stores such as Walmart and Best Buy currently only make about 50,000 price changes per month.

Displaydata's report, 'Rethinking Retail: Getting the In-Store Price Right in a Digital Age', the second in a series, states that "because digital platforms can react quickly and flexibly to variables such as competitor pricing, stock availability, sell-by dates and inclement weather, there is a perception among consumers that stores aren't offering the same value for money".

According to the report, 42% of U.S. shoppers believe retailers offer different prices online than they do in-store and 72% have been deterred from making a purchase in-store because they think the price is too high.

DD Aura Main image 1 330x230px.7bb434fded2f615045a448eacf521eda163.jpgThis is where Electronic Shelf Labels (ESLs) can play a major role in the in-store shopping experience. As well as providing dynamic pricing across all stores, they enable retailers to keep pricing aligned with online and even display real-time competitor pricing to reduce the likelihood of showrooming.

"At the end of the day, whether they are looking for the lowest price, the largest quantity or the latest promotion, today's consumers crave clarity and value in all channels," concludes Displaydata in its report. "Electronic shelf labels are enabling omni-channel retailers to offer transparency and clarity in the store, ensuring the price is right at every touch point."

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Tags: brick-and-mortar, online, price, retail








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