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!
Share this..
Related stories
Household Finances
Recent surveys of over 2000 households have suggested that people are still struggling on stretched budgets. The Bank of England's annual poll has concluded that over 50% of households struggled to meet credit card debts and other unsecured credit payments. Almost a quarter of those surveyed said that they had cut back on spending because it was so hard to borrow or that they had concerns abou...
Read MoreIsle Of Man credit rating under review
Fresh from a surprise 24% reduction in the Isle of Man's budget forwarded by the UK government, it has been revealed that credit rating company Moody's has placed the island's credit rating under review. The current Triple-A status is in line for a possible downgrade purely and simply because of the 24% reduction in the government's budget which Alistair Darling has already confirmed is non-negoti...
Read MoreDo you really need your credit card?
In the midst of the current economic slowdown we should all be taking a closer look at our finances and seeing where we can cut back, where we can make adjustments to give us that little bit more room and save some money. One question we should possibly be asking ourselves is, do we really need a credit card for everyday use?
If as so many of us seem to suggest, we will be paying b...
Has the FSA gone too far regarding bank stress tests?
As we covered in one of our earlier articles, the Financial Services Authority (FSA) has issued a new set of guidelines regarding bank stress tests which will effectively force each and every financial institution in the UK to identify its own potential weaknesses. This is a rather bizarre way in which to protect the UK economy because all the regulators are doing is highlighting weak companies an...
Read MoreFTSE 100 companies request change in pension regulations
Tesco has come forward to ask the UK government to change the laws on pension payments and allow companies to reduce payouts where applicable. The ongoing demise of the UK economy and the UK stock market has placed significant pressure on the UK pension industry and many major companies are suffering. To give you an example of the current situation, Royal Bank of Scotland is currently valued at ju...
Read More