The effect of e-marketing on product prices

yousef29 June 2022Last Update : 2 years ago
The effect of e-marketing on product prices

The price of products offered electronically is affected in different forms and ways, as it decreases or sometimes increases more flexibly than the normal market, and the price of a product varies more smoothly than if it is presented in traditional ways, and determining the price is easily affected by the consumer’s demand for the product or not, and these effects appear directly at the seller Which leads to the buyer’s intervention by setting the price more broadly than the traditional methods of marketing.

E-marketing contributes to the ease of creating a market database that companies use to take future decisions in terms of distributing and pricing products to achieve higher profit and less effort compared to traditional methods.

Pricing policies are drawn accordingly, taking into account the bargaining power of the electronic consumer when determining the price The effect of e-marketing on product prices can be explained as follows:

Marketing cost reduction

The costs of producing a commodity and its marketing costs are calculated in advance before pricing it, in order to set the optimum price that achieves profit, which is at a minimum equal to the cost price, which increases in traditional marketing due to costs such as travel and printing to promote the commodity, and also increases due to things such as packaging and storage.

E-marketing does not require travel and printing, and it also saves in advertising costs through the use of the Internet for advertising, and saves in the number of employees, so the marketing cost decreases, which is reflected in the decrease in the price of the commodity, and it can even disappear completely if the product is digital.

Diversity of suppliers

The possibility of reaching more suppliers for a commodity through electronic media gives more room for the seller to choose, so the best supplier can be chosen at the lowest price and on conditions that suit the merchant and the consumer together, which is reflected on the consumer where the product can then be offered for direct sale at a lower price.

no tax

The non-interference of the state in many cases of e-marketing with the absence of taxes or the imposition of fees on many goods marketed electronically in many countries leads to reducing the cost to the seller and thus offering the goods at a lower price electronically, and this is in the interest of the consumer.


E-marketing provides an opportunity to compare prices between a large segment of competitors through specialized comparison programs, through which the consumer gets the service he wants at the lowest price, while sellers monitor these programs to try to attract somewhat assured consumers to make the purchase or to try to guide them to another product through advertisements. In all cases, prices are affected based on consumers’ demand for purchase or not.

Price variation through many competitors in e-marketing

The prices of electronically marketed products are affected by the abundance of competitors, as the buyer has options at different prices for the same product available at the same time, and there is less variation in prices than that on the ground due to the large number of sellers and the transparency of electronic supply, and the higher the price of the product and the number of competitors, the greater the price discrepancy This variance decreases over time on the product, especially if it is a digital product.

Short Link

Leave a Comment

Your email address will not be published.Required fields are marked *

Comments Rules :

You can edit this text from "LightMag Panel" to match the comments rules on your site