Effects of showrooming to brick and mortar shops (Essay Sample)

Effects of showrooming to brick and mortar shops
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Outline
1 Introduction
2 Advancement in technology
3 Cheap prices
4 Competition
5 Convenience gap
6 Online advertisements
7 Conclusion
Effects of showrooming on brick and mortar shops
Introduction
Showrooming is when consumers find their way into a Walmart, take a look of the products in the showroom and then compare the prices with online prices via aid of smart phones and purchase them where they are cheaper (Cammorata, 180). Showrooming is one of the main problems that stationery stores face in the current market. On the other hand, the main beneficiary of it in America is Amazon.com because of not only its tax free, but also low prices. The implementation of “Amazon Prime two-day free shipping” has also enhanced its choice as the retailer of the day. This paper aims at providing detailed information on the effects of showrooming on the success of brick and mortar shops. It will also outline some strategies that opt to be implemented by traditional brick and mortar retailers in order to combat showrooming.
Advancement in technology
Advancement in technology has lessened life stresses. It has led to the introduction of the internet that unites people from diverse areas with different interests. It has made it possible for people to access information from all parts of the globe with much ease and more efficient (Klein, 77). This has made most consumers to enjoy the presence of many online opportunities as a result of increase in number of online suppliers. It has also made consumers to have a bargaining power on the products produced in different parts of the world. Some phones also have the ability of scanning bar codes in shops and comparing the prices of scanned products in different retailers within short periods.
Cheap prices
The products sold via internet are very cheap compared to those sold in brick and mortar shops. This is because, unlike brick and mortar shops, digital shops rarely spend on staff and inventories. Additionally, most consumers take advantage of freedom of choice. They often use shop assistants in brick and mortar shops in seeking necessary information on certain products before purchasing them at a cheapest price on online shops.
Competition
Competition is also one of the factors that contribute to physical retail shops to fail in their daily activities. It leads to most retailers to employ some risky tactics such as lowering the prices on the materials place on outbound and maintaining their prices on the inbound. Unfortunately, this tactic leads not only to accumulation of deficit, but also decline in customer turnover. In order to be successful in their daily activities, physical retailers will be enforced to lower the prices of their goods. They will have to match the prices of their products with that of the products sold online. Unfortunately, this will lead to them making little or no profit at all. This is because they will have to pay their educated and knowledgeable staff enough salary regardless of the profit they make.
Convenience gap
Convenience gap is also one of the key factors that pose great challenge to brick and mortar shops. Currently, most consumers love carrying out activities without straining. Majority of them prefer shopping from their comfortable couches to walking or driving to physical shops. To meet the demands of such consumers, and to enhance their survival, physical retailers are enforced to use the Web in advertising their products. Additionally, retailers are enforced to employ delivery services so as to meet the demands of consumers. Unfortunately, the introduction of Web in physical shops and delivering of goods to consumers leads to retailers investing more money in their businesses.
Online advertisements
Online advertisements are also part of the challenges that physical shops face in their daily activities (Simon, 214). Most online retailers advertise goods at prices lower than what physical retailers spend in buying the same products from...