If the arguments above do not make you think of online shopping compared to physical shopping, then I would be surprised. And probably the greatest source of humour for me is the fact that some of those once bemoaning the demise of the high street store are now bemoaning the demise of the large physical chain as online store prices compete away their business. But again I do not think that they have morality on their side as an argument. It is, I am told, a fact of life that the cheapest place to order a pizza from one of the dominant pizza delivery firms is Hull, and the most expensive is London – but I am not aggrieved by this fact, consoling myself with the knowledge that both property and labour is more expensive in London, and so I would not expect Hull prices when ordering pizza in London. And while I, like anyone, like a bargain, I am not going to get on a train to Hull just to pick up a bargain pizza. Similarly the convenience factor has the potential to save many physical businesses – provided they do actually offer this convenience (stock is paramount here). But I also would strongly argue that understanding the local market and offering the right products, with the right level of service, in the right shopping environment, can create a successful local business.
While Amazon can offer me almost everything, sometimes I do not want to be confronted with the paradox of choice, and perhaps at times I want to be guided by a helpful expert in their field. On other occasions I just want to browse and enjoy the experience of serendipity and buy something I did not know I wanted. And when all of these criteria are met it is not morality that makes me pay the price they might charge me, it is the fact that I will not even bother to look to see if it is cheaper elsewhere as I am having a good shopping experience.
James Bateman is head of multi-manager and multi-asset portfolio management for Fidelity Worldwide Investment
