Demand and supply
As an e-commerce entrepreneur, you might have already heard about this term. Demand and supply is the concept that economists use to determine the price of a certain product. This is common in today’s markets. The markets depend on this principle in order to price certain goods. The goods that are most commonly priced this way are commodities such as oil and metals. If there is a large supply of certain products and a low demand for them then the price of the product drops. This is a simple economics concept of supply and demand. It applies in almost every economic sector. This ensures that there is a balance.
Demand and supply in e-commerce
This concept also applies to e-commerce. As a seller of a certain product you should always ensure that the product has a large demand otherwise you will end up selling it at a lower cost. Products that are sold for lower costs are usually products that have already flooded the market. Therefore there is no large demand for the product. In order to rack in high profits, you should ensure that you are selling products at a higher price. Unique products are usually the best when it comes to making record profits. This is due to the fact that no one else will be selling the same product that you are selling.
Demand and supply in labor
Some people have always wondered why the cost to hire someone in first world countries is expensive. The simple concept is demand and supply. For instance, a cardiac surgeon gets paid half a million per year. This is a very large salary. It takes more than 14 years to train such a surgeon, therefore, it’s not easy finding such a surgeon.