. There are numerous reasons for this occurrence. One reason is that the over head for businesses is much lower. They do not have the cost of show rooms, retails stores and employee costs.
They are able to keep the costs down by operating from a warehouse location and only hiring a few people to do the packing and shipping of items. The lower over head keeps prices down for consumers as well. Consumers are no longer paying for all the added expenses in the price of the items.
There is also the fact that online shopping offers the manufacturer or retail location the opportunity to reach a much wider audience with their products. They are no longer confined to their city or state, but can reach consumers worldwide. This helps to the sell the products faster, generating more money for the company and allowing them to keep their prices lower.
Furthermore, there is the fact that taxes are not calculated the same way with online shopping. Many retail sites online do not charge tax, the same way that taxes are charged when purchasing in town. This can result in more money for a consumer to spend and lower prices as well. Receiving tax free items has become a huge advantage to online retailers where they may only have to charge tax in certain states, depending on what the tax rules are.
Lastly, online shopping is extremely competitive. There are more and more online retailers than ever before. This means that retailers are fighting for the business of consumers. Offering free shipping, buy one get one free deals and other offers and advantages are something that online retailers have to do on a regular basis.