Nikki Baird

Retailers Hiding Prices Online

February 10, 2010

FROM RETAILWIRE:
Much like some fine jewelry shops, some e-commerce sites are making prices for items difficult to spot. Only by adding the merchandise to their shopping carts are consumers able to see the cost. Do you think being evasive with pricing is a good policy for e-retailers?      [more...]

RSR's research has found that multi-channel shoppers are more profitable than single channel shoppers. The idea behind it is that the more engaged a shopper is, the more opportunity you have to make a profitable customer. But more and more eCommerce people tell me that they don't buy it--that the eCommerce channel specifically is not as profitable as the store channel, in part because price transparency drives down margin, and in part because online has become the preferred closeout channel for getting rid of overstocks. "How do you resolve the conflict?" I have been challenged. My response is, we're talking about two different things--channels vs. customers.

That's the challenge here with prices. Price transparency squeezes margins, but hiding prices removes you from a traffic driver--these shopping sites. I know that a lot of these comparison sites, worried about retailers hiding prices and removing themselves from searches, are happy to come up with ways that allow retailers to put more forward to the customer than just price. Sounds like retailers and these meta-sites need to get creative.