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E-commerce as a Stockpiling Technology - Implications for Consumer Savings

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  • Andrea Pozzi

    (EIEF)

Abstract

Shopping on the Internet spares customers the discomfort of carrying around heavy and bulky baskets of goods, since the service usually includes home de- livery. This makes e-commerce a technology well suited to helping consumers to buy in bulk or to stockpile items on discount. I use grocery scanner data provided by a supermarket chain selling both online and through traditional stores to show that the introduction of e-commerce leads to an increase in bulk purchase and stockpiling behavior by customers. Since bulk and discounted items are sold at a lower price per unit, my findings highlight a new dimension in which online shopping can be beneficial to consumers. According to my calculations, the reduction in the cost of stockpiling triggered by the introduction of electronic commerce generates significant savings.

Suggested Citation

  • Andrea Pozzi, 2013. "E-commerce as a Stockpiling Technology - Implications for Consumer Savings," EIEF Working Papers Series 1308, Einaudi Institute for Economics and Finance (EIEF), revised Mar 2013.
  • Handle: RePEc:eie:wpaper:1308
    as

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    References listed on IDEAS

    as
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    More about this item

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm
    • L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce

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