Do Brick and Mortar Retailers Have Better Pricing Than Amazon?

8/15/2018

It's a common knowledge that online shopping is easy and convenient. But despite the robust mobile applications, eCommerce capabilities, and other technology advancements, consumers still embrace the tactile experience offered by brick-and-mortar shops. According to entrepreneur.com, offline sales are 10 times bigger than online sales in the U.S. but online shopping is growing at a significant rate.

While online shopping is accessible, the million dollar question is "Is the price better?" since online stores don’t have to pay rent for a storefront in a nice part of town.Do Brick and Mortar Retailers Have Better Pricing than Amazon

Take Amazon, the world-renowned online mega store. Most Americans believe Amazon’s prices are lower than any other retailer. A writer from Virginia made a price comparison of random hardware purchases on Ace Hardware vs. Amazon. Let’s take a look at his findings:

It started when he had been tasked with copying a house key. Obviously, that is one task you cannot do online. As he stepped into a local Ace Hardware store named Logan Hardware—assuming that prices would be astronomical because of where it is located—a trendy stretch of 14th Street recently revitalized in northwest Washington, D.C. He exited Logan Hardware with $20 worth of merchandise, thinking that he would have saved a lot of money if he had purchased it from Amazon. He proved himself wrong.... 

In this non-scientific comparison, the Ace Hardware price for fruit chews was $1.59, while on Amazon it was $3.08. Non-slip rug pad at Ace Hardware was $5.99, while Amazon was $9.99. Case in point—this Ace Hardware cooperative known as Logan Hardware undercut Amazon by a big margin. To learn more about the comparison, visit https://medium.com/@goddin/the-unlikely-case-of-the-brick-and-mortar-hardware-store-that-undercut-amazon-cd56cc1224d0.

To read the Logan Hardware/A Few Cool Hardware Stores technology case study, click here.

Sandi Thomas VP of Product Marketing Retail at Epicor Sandi Thomas is the vice president product marketing, retail at Epicor. Connect with her on LinkedIn.


 

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