The consumer behavior shift towards more online shopping is made possible by reducing the risks and inconveniences borne by the shopper. Free returns, free delivery, and different options of these services are in fact, not free at all. On the consumer end, the cost is time spent on browsing online, and queuing to pick up purchases if it is a click-and-collect purchase.
There are running costs behind these services that the retailers bear, not only transportation costs, but even hiring manpower to oversee the smooth delivery of these processes. Retailers even have to rent dedicated centres or outsource the running of returns to logistics companies.
These increasing costs may, according to the commentators, not be sustainable in the long term. It affects the profit margins made by retailers, which could be invested in 0ther more value-adding services or processes that improve the products.
Read the full article on Channel NewsAsia: Commentary: The hidden costs of online shopping
Analysis:
This research project highlights a facet of online shopping that most consumers do not think about. Retailers responded to the most prominent questions about online shopping to change consumption patterns from brick-and-mortar stores to online stores. What they did not expect is probably the increasing cost of continuing such services to maintain the veil of convenience and savings.
As the fashion retail industry matures, alternate channels of renewing one’s wardrobe are becoming more prevalent. There are monthly subscriptions of clothes rental to keep wardrobes fresh without having to own the clothings. Additionally, clothes-swap events, and secondhand thrift shops cater to those who are more environmentally conscious, and want to reduce consumption of new products. These alternatives may be traditional retailers’ much needed competition.
Consumers are also starting to become more aware of the environmental harm and social costs of the fast fashion industry. Coupled with more research-based evidence to convince consumers and retailers of the sustainability issues with the fashion industry, there is hope that changes in mindset towards mass consumption may change for the better.
Questions for further personal evaluation:
- What are the positive and negative trends of the fashion industry?
- If returns were not free for you anymore, would you still continue shopping online?
Useful vocabulary:
- ‘overheads’: cost or expense
- ‘fraudulent: obtained, done by, or involving deception, especially criminal deception
Picture credits:https://pixabay.com/en/ecommerce-selling-online-3021581/