Why is a physical store selling a piece of clothing for 500 yuan, while e-commerce only sells for a few dozen yuan? Where is the problem?

Tech 2023-07-05 07:44:43 Source: Network

Summer is coming soon, and many people are preparing to buy a few new clothes for summer wear. So, some netizens always want to shop around and try to save some money

Summer is coming soon, and many people are preparing to buy a few new clothes for summer wear. So, some netizens always want to shop around and try to save some money. They first went to physical stores to check the prices, and then went to clothing e-commerce to do it. They discovered a surprising secret, which is that the same style of clothing is sold for 500 yuan in physical stores, while e-commerce only sells for a few dozen yuan. So what is the problem?

In fact, a piece of clothing of the same style costs 500 yuan in a physical store, while it only costs a few tens of yuan in e-commerce. This question is not difficult to answer, mainly for the following four reasons:

Firstly, physical stores sell clothes, but due to the influence of traffic, they can only sell up to a dozen sets of clothes per day. E-commerce, on the other hand, is different. E-commerce sells clothes to increase sales volume, and can sell hundreds or even thousands of sets of clothes per day. Obviously, e-commerce selling clothes can achieve low profits and high sales, while physical stores cannot achieve this at all.

It is worth mentioning that e-commerce directly obtains goods from manufacturers, and without intermediaries to earn price differences, the price of clothes will be very cheap. If physical stores want to purchase, they need to go through intermediate stages such as wholesalers and distributors to increase prices layer by layer. This leads to relatively high prices for physical store purchases.

Secondly, the same style also differs in the material and workmanship of the clothes. For example, e-commerce often chooses pure brocade materials with lower prices for clothing sold in order to achieve low sales volume. However, physical stores are different, as the same style of clothing often sells clothes with higher prices for fabrics such as silk. As the saying goes, you get what you pay for. Clothes sold in e-commerce with poor materials are cheaper than those sold in physical stores, which is not difficult to understand.

Thirdly, physical stores are not allowed to sell counterfeit goods. If a customer complains, the store is likely to be heavily fined or even shut down. And some e-commerce may secretly sell fake or counterfeit products. Obviously, it is not surprising that there is a huge price difference between the real goods sold in physical stores and the fake goods that may be sold in e-commerce.

At the same time, physical stores must pay taxes for every piece of clothing they sell, and some e-commerce businesses that sell goods online will evade taxes, so the cost of tax expenses for e-commerce is much smaller than that of physical stores.

Fourthly, doing clothing e-commerce online only requires 2-3 people and renting an empty house as a warehouse to sell clothing online, resulting in lower operating costs for e-commerce. Physical stores, on the other hand, need to pay high rent, store decoration, and employee compensation. Obviously, the operating costs of physical stores cannot be reduced, and these operating expenses must be allocated to the price of each piece of clothing. So, the prices of various types of clothing sold in physical stores are slightly higher than those in e-commerce.

Why is a physical store selling a piece of clothing for 500 yuan, while e-commerce only sells for a few dozen yuan? In fact, there are various reasons for this: 1. E-commerce sales of goods are based on volume expansion, with a "small profit but quick sales" approach, which is difficult for physical stores to achieve; 2. The styles, materials, and workmanship of the same clothes are completely different. 3. Physical stores sell genuine goods, while some e-commerce stores often sell fake goods; 4. The operating costs of e-commerce are relatively low, while the rental, labor, and storefront decoration costs of physical stores are relatively high. Ultimately, this cost must be shared over the price of each piece of clothing.

Source: Non persistent finance

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