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How Pricing Works

The Same Shop Charges Differently Online And In Store

One retailer can legitimately show two prices for one product across its own channels, because each channel carries a different cost structure and faces different competitors.

Close-up of a person scanning a wine bottle with a portable scanner in a store.
Photograph by iMin Technology via Pexels
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A price found online and a price found in the same chain's shop need not match. This is not an error and not usually a trick; the two channels are close to separate businesses.

The cost of serving a sale differs

A shop carries rent, staffing and local stockholding for every sale it makes. An online order carries picking, packing and delivery instead.

Neither structure is universally cheaper. Bulky goods are expensive to ship and cheap to hand over; small high-value goods are the reverse.

Where the underlying costs differ, prices that reflect them differ too, and the gap can point in either direction by category.

Each channel faces different competition

Online, a shopper compares against every seller reachable from the same screen. In a shop, the comparison is against whatever else is within travelling distance that day.

Competitive pressure is therefore much sharper online, which pushes those prices down towards a common level across the market.

A shop in a location with few alternatives faces less of that pressure, which is one reason identical chains price differently by site.

Stock is not the same stock

Ranges diverge between channels because shelf space is finite and warehouse space is less so. Slow-moving lines migrate online and volume lines stay in store.

Model numbers can diverge as well, with channel-specific variants that differ in accessories or specification. Two prices then describe two genuinely different products.

Checking that the full model identifier matches is the step that turns a price comparison into a like-for-like one.

Collection sits between the two

Ordering online for collection usually takes the online price while avoiding the delivery cost. The retailer accepts this because the visit often produces additional purchases.

That is the commercial reason collection is frequently free while delivery is not, even though the goods travel almost the whole way in both cases.

It also gives shoppers a straightforward route to the lower of the two prices where the difference matters.

What a retailer owes you across channels

Nothing generally obliges a business to charge the same price everywhere it trades. Price differences between a shop and a website are ordinarily lawful.

What is regulated is accuracy: the price charged must be the price displayed for that channel, and misleading presentation of savings is treated separately. Specifics vary by jurisdiction.

Practically, many chains will match their own online price at the till if asked, because refusing loses a sale they have already almost made.

That willingness varies by category and by how much discretion staff are given. Where the gap is large, ordering online for collection while standing in the shop achieves the same result.

Questions readers ask

Is selling below cost legal?

It depends on the country. Some restrict below-cost selling through competition or unfair trading rules, others permit it broadly. Check your national competition authority for the local position.

Can I just buy the promoted item and leave?

Yes, and it costs the shop money to serve you. Layout is designed to make that harder, not to prevent it.

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Charu Sanghvi
Contributing writer, Deals Ka Baap

Charu writes about pricing structure and how a discount is designed before it is offered.

Also by Charu Sanghvi