Recession or not, you can always save big with discount shopping. In some cases, you can save as much as 50% off the retail price. How does that happen?

1) Price transparency.

On the Internet, there is price transparency. As a result, many online retailers start to slash prices in an attempt to make more sales. Online visitors tend to be very price sensitive. Why shouldn't they be? After all, with a few simple clicks, they can easily find out the market pricing. They then compare prices, and go to the retailer that offers the cheapest pricing. As a consumer, you stand to benefit because you can always go to someone else if the price is not right.

2) Price wars.

Transparency always leads to price wars. The retailer who can offer the best quality products at the cheapest pricing stands to win big. Usually, these are the bigger retailers who can afford to bring in more volume. When they buy in bulk, they tend to enjoy higher volume discounts. Even if the margin is lower, they still make a profit because of the volume of sales they are making. All thanks to the economies of scale. Usually, due to the lower cost price per unit, larger retailers tend to pass the savings to consumer by offering better discounts.

3) Wholesale pricing.

Besides traditional retail pricing, consumers also get exposed to wholesale products. The term "wholesale" has the connotation of very large orders - i.e. orders that require containers to deliver. But on the Internet, the word "wholesale" seems to have shrunk. For instance, a website selling pearls may promote itself as a pearl wholesaler. But upon closer examination, the minimum quantity required to place an order is just 100 pearls. This is hardly the type of wholesale that we are all familiar with. By buying at wholesale pricing, you get to enjoy never seen before discounts. That is only possible on the Internet.

4) Stiff competition.

In some markets, competition is very stiff. Let's take a look at a real world example - web hosting. Competition pushes the hosting companies to new heights. These companies have to evolve quickly in order to keep themselves in business. The quality of service has to be excellent, and prices are driven to the floor. To acquire new customers, these companies have resorted to giving away discount coupons. Using these coupons, customers get a huge discount when they sign up. This phenomenon is not unique to the web hosting industry. It's common in any market that faces stiff competition - clothing, pets, software, etc.

Don't underestimate the amount of money that you will save with discount shopping. Even if it's a small amount, go for it! Those small amounts soon add up to be something substantial.