Three Reasons Why Some Online Retailers Don’t Allow Discounts

Even though there are a lot of retailers that offer discounts on their products, some online retailers don’t. There are a lot of different reasons why companies that sell products online don’t allow discounts. Here are three of the most common:

Reason #1 – Their Prices Are Already Exceptionally Low

Because selling online is so competitive, many retailers already price their products as low as possible while still earning a profit. If they offered a discount on top of the already-low prices that they have available, they wouldn’t make any money at all.

One of the main reasons why people shop online, in fact, is because they can usually get lower prices than they can in local stores. Because prices on the Internet tend to be a lot lower, you may even be able to save more money by paying the full price on the Internet versus a discounted price at a local retail outlet.

Reason #2 – People Are Less Likely To Make Impulse Buys When Shopping Online

One of the primary reasons why stores offer discounts is to try to bring customers to the store. The idea behind this concept is that people will come in to by the discounted products and will then wind up buying other products at full price, making up for the discount. Impulse buys are extremely common in a traditional retail outlet. That is why there are often eye-catching product displays set up in the middle of aisles or at the checkout stands. As people walk by, they see something that they want, grab it, and put it in their cart.

These types of purchases are a lot less likely to happen online. Because of that, online retailers have less incentive to offer discounts. Even if the item that they used to draw customers in is deeply discounted, people are not nearly as likely to buy other products on impulse. That means that online retailers have a harder time earning back the discounted amount like.

Reason #3 – They Don’t Want To Devalue Their Products

Offering products or services at a discounted price often devalues them in the minds of customers. After purchasing something at a discount, people are less likely to want to pay full price for it in the future since the value of the item in their mind is the amount that they paid with the discount. This can make it harder to make future sales of the same product, which is one reason why online retailers choose not to discount the products that they sell.

Even though a lot of online retailers do offer discounts, there are quite a few that don’t. While every retailer has their own individual reasons for avoiding discounts, there are some relatively common reasons why discounts are frowned upon in the online selling environment.

For one thing, most online stores already offer excellent pricing. Additionally, impulse buys, which are one of the primary driving forces behind discounts, are much less likely to happen online. Finally, discounting products can devalue them in the minds of customers, making them harder to sell at full price again in the future.

If they own the building, they are responsible for upkeep and maintenance. Not only does that mean performing repairs on the structure itself but also taking care of landscaping, cleaning, and other ongoing maintenance. In cold climates, they have to pay for extra expenses like snowplowing to make it easy for customers to visit.

The store itself needs to be staffed with a number of different employees. It goes without saying that the store needs to have cashiers so that people can check out when they buy products. There are a lot of behind-the-scenes employees, as well. Some perform tasks like unloading trucks and stocking the shelves. Others handle administrative work and take care of coupons like All of these employees need to be paid. Again, the money for their salaries comes from the money that is generated by selling products.

There are even more expenses above and beyond all of the ones listed above. For instance, most retail stores have to pay for security and utilities. All of these expenses can really add up.

In order to ensure that they make enough money each month to cover their expenses while still generating a profit, stores typically have to charge relatively high prices. If they lowered their prices, they wouldn’t be profitable, meaning that they would eventually go out of business.

Online retailers have things a little bit easier. They still have a lot of overhead expenses. However, their expenses are usually far lower than local stores. Many stores that sell goods online operate out of warehouses. Some even use drop shipping, meaning that the shipping and warehousing of the products are handled by another company altogether.

With so few overhead expenses, companies that sell products online can usually offer prices that are a lot lower than you can find at local stores. By shopping through the Internet, you can almost always save quite a bit of money, as long as you don’t have to pay exorbitant shipping fees.

Having said that, there are still a lot of great reasons to shop at local stores. When you buy products from stores in your area, you help support the local economy. You also have a chance to see products in person, making it easier to decide whether or not you really want to purchase them.