Pricing error in an online shop – what is it and do you have to sell a product with an incorrect price?

Sometimes, when selling products via an online shop, we inadvertently make a variety of mistakes that will confuse consumers and expose the business to potential losses. One of the common mistakes, however, is the pricing error. In this article you will learn:

• What is a pricing error?
• How can you deal with a pricing error?
• What consequences does a pricing error have for sellers and buyers?
• How to avoid pricing errors?

Pricing error – definition

A pricing error in an online shop is a situation in which the price of an item displayed on the online shop’s website does not correspond to the actual price. A pricing error can include both under- or over-pricing of an item. From a retailer’s perspective, a too low price is obviously more disadvantageous, which (especially if not noticed in time) can lead to potential losses.

Possible solutions to the pricing error problem

In connection with pricing errors, one fundamental question arises in the minds of traders: can an order containing a pricing error legally be refused? At the order acceptance stage, the answer is simple – an order containing products with an incorrect price can be refused. Indeed, the conclusion of the sales contract does not occur when the consumer decides to purchase the product by clicking on the buy now button. Furthermore, the conclusion of the sales contract does not occur when the consumer pays for the order. The contract is concluded when the seller confirms the order. He or she can then verify the contents of the order and the prices of the products and, in the event of errors, cancel the order.

The situation becomes somewhat more complicated when the price error is only noticed after the order has been accepted (this is often the case when orders are confirmed automatically as soon as they are placed by consumers). If the seller discovers the pricing error within a period of up to one year, he may invoke a defect in his declaration of intent – and thus be able to evade the legal effects of the concluded sales contract. In order for this to happen, in addition to the declaration, sent within a reasonable period of time, the price error must be material, obvious and easily noticeable. Furthermore, the product offer must not suggest that the goods are on promotion or sale.

If your online shop has received an order that includes a product with an erroneous price, be sure to contact the consumer and warn him or her of the situation before sending the relevant statement. By doing so, you will somewhat reduce the level of dissatisfaction, which in this case is understandable.

Consequences for sellers and buyers due to pricing errors

Mistakes in the price of goods are detrimental to both sellers and buyers. From the sellers’ perspective, pricing errors primarily represent a risk of direct financial loss. Indeed, an unnoticed pricing error in an online shop will lead to a situation in which the product is sold at a much lower, unfavourable price for the seller. On the other hand, a timely noticed pricing error and the cancellation of an order (either at the time of order acceptance or by sending an appropriate statement), may cause fully justified dissatisfaction of the consumer and deteriorate his/her relationship with the brand. Moreover, if pricing errors occur frequently, customers will not want to use the offer of the chosen online shop.

From the consumer’s perspective, a price error is first and foremost a threat of order refusal or cancellation. Although a product with a much lower price will seem like a great bargain, in reality the customer will most likely not be able to purchase it at the price shown on the shop’s website, leading to frustration and dissatisfaction. Misguided, overpriced products will also be detrimental. Although the product will be interesting, the price will be inadequate, making the consumer unlikely to take up the offer and annoyed by the situation.

Ways to avoid pricing mistakes

Although mistakes happen to everyone, there are several ways to avoid pricing errors in online shops. First of all, you should regularly and carefully check the prices of the products on the shop’s website – especially if the prices have recently been changed (increased or decreased). In addition, you should carefully check the price of the goods included in your order – as most errors can be detected well in advance.

In addition to systematically checking the prices of products (both during the receipt of an order and during routine operations on the website), it is advisable to include appropriate provisions in the shop rules regarding the ordering process. It should be noted that the products and their prices displayed on the website are only an invitation to make an offer to purchase the goods. This means that placing an order does not constitute purchasing the product. Such a provision may reduce consumer dissatisfaction in case of possible discrepancies in the price of the goods.