How interest rates affect online shopping?

To answer this question well, we must first explain to you what is meant by interest rates, as they are defined as the fees that the borrower bears in return for using the money that he took from the lender, regardless of whether it is a person, a financial institution or a central bank, and the borrowed assets include cash and goods Consumer, vehicles and property, where these fees are paid either as a lump sum on a predetermined date or periodic installments on a monthly or annual basis.

It can be said that interest rates apply with all cases of borrowing, where people borrow money to buy homes, or finance businesses and private projects and buy various products and so on, while companies get loans to expand their business and finance their projects by buying fixed assets such as land and buildings and equipment, where the interest rate is determined on the basis of the loan amount, including taxes and fees incurred by the borrower and the return on borrowed money, as the amount required to be repaid is usually higher than the amount borrowed, because lenders want compensation for not being able to use their money during the period The loan, the greater the risk of the borrower, the higher the interest rate.

As for the impact of interest rates on online shopping, this has another talk. Many studies indicate that low interest rates will encourage borrowing to enhance e-commerce businesses, because they simply increase the volume of money circulating among people as a result of lending and borrowing activities. Where online shoppers can buy more products through online shopping sites when there is more money in their hands, however, high interest rates lead to opposite results, as it reduces demand for electronic store products, and increases costs for employers, especially if they are They have several loans with variable interest rates.