Despite Booming E-Commerce, Shoppers Spend More on In-Store Purchases

retail sales

A lot of traditional retailers have suffered from the growing use of e-commerce in the U.S., but a report showed that Americans typically spend at least $50 more when buying at a physical store than online shopping.

Even if people spend more on in-store purchases, it does not mean that the likes of Amazon and eBay lose significant business when people spend more money on brick-and-mortar chains. On the contrary, the report may only apply to brands that have adjusted well to consumer habits. For instance, pricing strategies affect a retailer’s actual sales and implementing a minimum advertising pricing (MAP) policy will be crucial to encourage repeat business from your clients.

Why Customers Spend More In-Store


Some people just love the idea of walking into a store and enjoy themselves by looking at different items, especially when there is a bargain offer. A survey discovered that at least 40% of consumers indulge in retail therapy, and not just using their phones and clicking through listed products. Instead, these people want to uplift their spirits as soon as they step inside to buy a new dress or pair of shoes.

For some, a trip to the grocery store may be a convenient escape rather than a boring chore. It may seem melodramatic and romanticized, but retailers should know that many shoppers subconsciously rely on their physiological state when making purchase decisions. As an example, a person who only needs bread will likely buy milk as well from a supermarket if there is a promotional offer or discount. Male and female shoppers will do this 75% of the time.

As most people now only buy items when they need something, you should try to influence buyers into buying what they want from the store at the same time. This might be the reason some people end up spending more in-store. However, it requires careful research, particularly on competitive pricing information.

How Retail Pricing Strategies Help

The U.S. Department of Commerce said that Amazon accounts for 40% of all online retail sales, so it is highly possible that your products are listed on the e-commerce platform. Retailers must know how their products are priced on the website, as it creates a distinct impression among your customers.

By impression, imagine if a person walks into your store and decides to cross-check the price of an item on Amazon. The online seller is not part of your authorized resellers and if it is cheaper than the in-store price, your client is almost sure to make an online purchase. It becomes more problematic for luxury brands since clients would assume that your items are either overpriced, or they are not as valuable when compared with your competitors’ own products.

If you still do not have access to resources for tracking online retail prices, you should consider looking for one as soon as possible. Competitive pricing intelligence is no longer just as an ancillary expense today, especially for brands that are struggling to secure customers, it is a must.

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