Sales cannibalisation occurs when sales of one of a company's products or channels displace sales of another. The new revenue is therefore not entirely additional revenue for the business.[1] This differs from keyword cannibalisation, which concerns overlapping pages in search results.
A cheaper version may attract existing buyers rather than new ones. Assess the result for the whole product group, including contribution lost on the original version. Cannibalisation is not necessarily undesirable: a merchant may deliberately replace its older model before a competitor does so.[1]
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Compiled with AI assistance using public sources. General explanation, not individual legal or tax advice. Describing a concept does not mean Zoloo offers it as a feature.