Pricing transparency provides both eCommerce and retail consumers with a detailed view of the factors affecting the price of a product. This is very important for sustainability as provides consumers with the information on the environmental impact of the product and the associated price.
eCommerce is currently heavily influenced by price. In the competitive world of online retail, the price of a product is often the most influencing factor for consumers purchasing decision. If you then factor in that many online retailers are reliant on discounting and promotions to drive online revenue, the manufacturing price of a product needs to kept low to allow retailers margin to discount.
The big issue with this is that products which are cheap to produce will more often than not follow manufacturing processes with an environmental impact and weak sustainability. It is often impossible for consumers to know whether this is the case with any given product, and hence pricing transparency offers a vital tool in the fight for sustainability.
By showing consumers the factors which control price through pricing transparency, many will make a completely different purchasing decision. Once people understand that the cheapest product is often going to cause significant damage to the environment, they may be more open to spending more for a more sustainable option.
Pricing transparency plays a vital role in the education of consumers, and a more comprehensive understanding will significantly improve sustainability within eCommerce. As consumer become accustomed to a world where the sustainability of a product is evident through pricing transparency, this will begin to counteract the effectiveness of price-led purchased.
Be sure to keep up to date with The Ecobahn for all the latest pricing transparency news and developments.