Reduction in Consumers’ Purchasing Cost by Online Shopping

The development of online shopping services is stimulated by both retailers and consumers. Compared to the brick-and-mortar type of stores, the online shopping retailers can save selling cost, such as rent and labor cost, and consumers who purchase items via online shopping site also can save time for shopping trips. In this study, we confirm how the online shopping affects retailer's selling cost and consumer's purchasing cost compared with the case of shopping at brick-and-mortar stores. Furthermore, we examine how delivery manners affects retailer's and consumer's cost, concluding that the online shopping retailers should clearly introduce the delivery charge independent from the price of the items.