Preferences for online shopping: What are the potential drawbacks?

Preferences for online shopping: What are the potential drawbacks?

Online shopping is a wider market; there are so many pros and cons there. From the economic point of view of preference for online shopping, what are the potential drawbacks? The first one is bargaining power—the bargaining power of the buyer is zero; there is no chance for that in online shopping. The term bargaining means the buyer compares the product and prices it at what it's worth for that product. If not, the buyer suggests some price to the seller, and then both are involved in bargaining for that product. In economics, it's one of the most important behaviors and characteristics of a buyer or consumer. But in online shopping, it's completely avoiding bargaining because the buyer and seller can't meet face-to-face. Sellers also don't have a chance to bargain the price, and at the time, as buyers also, they are both, and chances are avoided by online selling platforms. The second problem is satisfaction level—the satisfaction level of online shopping compared to direct marketing is less. In the term of economics, satisfaction is measured by utility. Direct markets give more utility to the buyer because direct markets give price satisfaction, product availability satisfaction, bargaining satisfaction, and touch-and-feel-the-product satisfaction. All of these are omitted by online shopping. So the satisfaction compared to direct market and online shopping, the utility or satisfaction, is less. And the next one is impulse buying—online shopping makes up impulse buying. The aim of buying a product online is one thing, but that platform recommends other related or sometimes unrelated products as well, and we unnecessarily purchase more products online. It's more likely to happen in online shopping than in direct marketing because online shopping platforms collect the information on our phones and suggest that product in the shopping platform, so buying chances are higher. It causes non-budgeting. And the next one is discouraging local businesses—the common point all know is online shopping is discouraging the local businesses. Because nowadays all are finding the products online, and they may be foreign products also, we don't purchase the domestic manufacturing product. Online markets give more similar products. Sometimes the price is also less compared to the direct market. But the main point is the local economy is affected because of discouraging the local businesses.

Features of online shopping- The feature of online shopping is to stop direct market purchasing and to shut down all retail shops. All consumers are converted into online shoppers, and the price of products is fixed by the online shopping platform, not by market forces (demand and supply of that product). And it's unfavourable to both buyers and sellers. Because the middleman of that online shopping platform only fixes the price of that product. The prices are higher for the consumer or buyer at the same time that online shopping platforms get that product to the seller at a low price and sell it at a higher price on their platform.