Showrooming, Sales and the Internet


News from Panama / Wednesday, September 13th, 2017

“Showrooming is when a consumer does some research before buying a product, physically going to a store, where they can touch, try out and get advise about the object they are interested in, but in the end they buy it on online where the price is more attractive.”

From an article by Ariel Baños, economist and founder of Fijaciondeprecios.com:

“Showrooming is when a consumer does some research before buying a product, physically going to a store, where they can touch, try out and get advise about the object they are interested in, but in the end they buy it on online where the price is more attractive. In this situation physical stores feel “used” as mere exhibition halls or “showrooms”. This is a significant global trend, which will continue to get stronger as long as there are significant price differences between traditional retail outlets and internet sites.

Here I share some points to bear in mind about this trend, which you can read in more detail in the article:

  • In order for showrooming to take place, two conditions must be met: it must be a product able to be bought online and have a medium or high price, which justifies taking the time to research alternatives before deciding where and how to purchase it.
  • There must also be a high level of uncertainty about the characteristics of what is being bought. In this way there will be customers who will need to go to the physical store in advance in order to gather more information. 
  • These are products where the look and feel is important for the buyer, meaning that a visit to the premises serves to clear up doubts, and then yes, encourages them to buy online and take advantage of the savings.
  • The categories of products most sensitive to showrooming are electronics, appliances, furniture, clothing, auto parts and toys, among other items.”

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