Online Sales - A Race To The Bottom?

[OnlineSales]

There are some industries - thankfully not mine to a great extent - where to me it seems like a simple race to the bottom when it comes to the price of goods. Some of these companies must surely be using online sales as loss leaders to increase their customer base and then try to sell add-on products?

One area I know this to be the case is eigarettes and eliquids as my friend has a business in this sector. If some of these products are not being sold for a loss then they must be fakes. I would like to hear the views of others as it is becoming harder and harder to sell for a profit online.

 

[Flores Xanthe]

It's a valid observation, and the phenomenon you describe is often referred to as a "race to the bottom" in pricing. This occurs when businesses engage in aggressive price competition, driving prices down to attract customers and gain market share. While this strategy can be effective in the short term for gaining traction and increasing customer base, it can have detrimental effects on profitability and the overall health of the industry in the long run.