How often has this happened to you? You log into your favourite e-commerce website and discover that a certain product you searched for a month ago has suddenly upped its price. You check a similar online store and its almost the same price there as well. So what exactly is the cause of this sudden upsurge in prices? Did the sellers hold a community meeting before agreeing to fix the new prices or perhaps, they just want to have a little fun by tormenting our pockets (certainly hope that’s not the case). This post will examine the most obvious factors that cause prices of goods to go up in Nigerian online stores:
Arguably the most important element that influences price of a commodity, the rate of a particular product obtained from the maker will definitely affect its selling price. The manufacturer considers a number of factors; including cost of materials and process of manufacturing before determining a cost price for the product.
After purchasing the product from the manufacturer, sellers need to ship or transport it to their warehouse for storage till it is ready to be delivered to customers. Distance from the manufacturer to the seller is usually quite long and thus, the seller has to cover the transit expenses (not to talk of import duties and other taxes). There is also the problem of rising energy costs which also affect the cost of transportation. All of these will affect the price of the products when it is ready to be featured on the website in the long run.
Products that a large section of people ask for at a period of time can have an influence on its price, especially when the item is low in supply or there is little or no competition.
Authentic products are usually more expensive than sub-standard ones since the process of making it is more intricate and requires a lot of detailing.
When other sellers are making sales at a certain price, there's always a tendency for fellow competitors to maximise their sales too by fixing prices that will be close to or much similar to what the initial seller is calling.
The value of a nation’s currency when paralleled against the country where goods are to be purchased from will ultimately affect the items’ selling price. For instance, if country A is purchasing goods from country B and the currency value in country A is higher than that of country B, then it will cost much lesser to buy products from country B. However, if the reverse is the case, then be prepared to spend more to buy products from country A. All of this factors will impact on the price of products put up by online stores in Nigeria.