Has the Internet actually reduced prices for consumers?
The High Court ruling in favour of eBay and against L'Oreal has instigated a number of discussions around the world regarding the Internet and the impact it has had on the consumer market. There is no doubt that prices have softened since the internet, and predominantly companies such as eBay, hit the ground running and attracted significant interest from consumers. However, will the Internet be able to make a long-term difference to consumer prices?
The truth is that the Internet has opened up so many markets for so many people that the softening of premium priced products, and everyday goods, was inevitable. The Internet is now part of everyday life and online sales are still increasing even though we are in the midst of a serious economic downturn. The truth is that at some stage you may see high street prices and online prices decouple with potentially a small premium paid for goods and services bought on the high Street when compared to the online arena.
This is only a true reflection of the difference in running costs and base costs between online companies and more traditional high street operators. The Internet is here to stay and its impact has only just begun!
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