Second order effects in retailing

As I shop for the holidays, I have encountered more than just by random chance items where the website claims “Hurry, Only 1 Left in Stock!”

I’m sure a randomized control trial somewhere showed that this message creates a sense of urgency and increases the conversion rate for those viewing the item.

However, I also find myself thinking that I don’t really care to frequent retailers that have such thin inventory where every purchase feels like a bidding war to get that last item, especially when we’re talking about relatively mundane, everyday items.

I prefer retailers that carry deep inventory in such items so that I can feel confident that the effort I put into visiting their website or store will give be rewarded with actually being able to obtain the item.

I predict that a second order consequence of this inventory messaging may decrease returning shoppers.

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