Bricks-and-mortar retailers with an online presence offer lower prices online than pure web businesses, according to a study by credit card issuer Goldfish.
Goldfish’s website tracks the prices of various products on the internet in an e-tail price index covering 1300 products and 150 e-tailers.
The report uncovered some disappointing statistics for companies trading solely via the web with no means to offset online losses. “For similar products traditional retailers who have added online distribution, as opposed to those who are pure play dot.coms, were 12.7% cheaper - which is not something we were expecting”, declared a Goldfish spoke.
Competition on the web is also increasing, as dotcoms slash prices to attract consumer interest. On average, online prices fell 2.4% from July to September. However, Goldfish found that traditional retailers were consistently able to undercut any offers made by dotcoms.
News source: BBC Online Business News (UK)