Is Competition Healthy? ---032
When you think of competition, the first thing that comes to you is price. We are always looking for more ways to save an extra buck or two. As a seller, it is important to pay attention to the state of the market by analyzing other competitors.. By analyzing the competition, we can better understand what the customer needs. According to basic economic principles, when the price falls, the quantity of demand increases; vice versa.
However, e-commerce is becoming a huge market, so it is not easy to be on top of the competition just by reducing the price. There are a number of other factors that may influence a customer to make a purchase. Strong service as well as quality shipping can help a seller attract more customers.
For example, if you compare two of the same items sold by different sellers: Item A priced at $10 with a 5-star review, fast shipping, and guaranteed delivery, or item B priced at $6, no reviews, 1-week shipping with no expected delivery date. Which item would you choose to purchase? For some of us, we might choose item B because we are in no rush and we don’t really care when we receive it, as long as we get what we paid for. However, the majority of us would probably choose to purchase item A because we want assurance that we will receive the item and that the transaction will go smoothly.
For most customers that did not grow up during the Internet Age, they may be more hesitant on purchasing online, due to fear of getting their information stolen or other security issues. A guaranteed delivery gives many of us the peace of mind we need after making a payment.
Competition is not just about price, it is about finding more ways to provide strong service for our customers. Competition can be good for both the customer and the seller. When there is competition, we can analyze what other sellers are doing right so that we can improve our service for our customers. The same can be said for every seller on any marketplace platform. So what do you think? Is competition healthy?