Reversed Fixed Price Concept of Reselling in the Internet

Reversed Fixed Price Concept of Reselling in the Internet

Explain why and how the internet is partially reversing the fixed price concept of retailing?
The world economy is based off the law of supply and demand. This is when producers will set the prices for various goods and services, based upon the price that consumers are willing to pay for a particular product / service. In the marketplace, this will determine how much is being charged for various good and services, as competitors will set their prices based upon the overall demand. This is significant, because when you have large amounts of demand, it will influence the price as producers can charge more for a particular product / service. Competition serves as a way of providing a range of prices for the general public. Where, different businesses are setting their prices based upon what their competitors are charging. However, over the last several decades this concept has been evolving thanks in part to globalization. What is happening is a variety of businesses have opened, that offer fixed price retailing. This is when a business will offer a large assortment of products for a sale at a discount prices such as: dollar stores. (“My Dollar Store,” 2006) The internet is reversing this concept by offering a larger assortment of products that are cheaper and more of a variety. This is forcing many fixed priced retailing locations, to begin using the internet as a way that they can offer larger discounts to the public. At which point, they will offer special discounts at various traditional retail locations. The way that that the internet is changing the concept of fixed price retailing is: by forcing those businesses to offer more products to consumers through the internet. Then, provide larger discounts at select retail locations to increase the overall profitability of the store. This is changing the concept of retailing, by forcing these businesses to offer larger discounts and more products to consumers. As a result, the overall availability of low priced...

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