E-commerce has increased price competition in many markets.Group of answer choicesTrueFalse

The statement is true.

E-commerce has significantly changed the landscape of many markets by increasing price competition for several reasons:

1. Access to Information: Consumers can easily compare prices and products from different retailers online. This transparency often forces businesses to offer more competitive pricing to attract customers.

2. Global Reach: E-commerce allows businesses to reach a global audience, increasing competition not only among local competitors but also international ones, which can drive prices lower.

3. Reduced Overheads: Online businesses often have lower operational costs compared to brick-and-mortar stores. This reduced overhead can enable them to sell products at lower prices.

4. Dynamic Pricing: Many e-commerce platforms utilize algorithms for dynamic pricing, where prices can change in real-time based on demand, inventory levels, and competitor prices.

5. Consumer Expectations: The ease of shopping online has led consumers to expect lower prices and quicker delivery, pushing companies to adjust their prices accordingly to stay relevant in the market.

In conclusion, the rise of e-commerce has indeed increased price competition in many markets.