Tackling the Risk Discount to increase online profits
Smaller online retailers with less well-known brands are suffering from a devastating phenomenon known as the “Risk Discount.” Online consumers are much more cautious when dealing with an unkown supplier’s web site and will pay less as a result. More often than not, they are willing to pay up to almost 20% more for the same item from a well-known online retailer with an established brand who they trust more.The Risk Discount not only has the potential to devastate sales turnover, but clearly also has a dpressing effect on profits.
US web sit Ecommerce Times has published this excellent guide to tackling the so-called Risk Discount and increasing its inverse - the “Trust Premium” - which is a must-read for all online retailers.
June 25th, 2007
