Topic 1.5.1 Digital Commerce

THE E-COMMERCE REVOLUTION – ONLINE OR OFFLINE, THAT IS THE QUESTION

A.CHINA ONLINE

In many countries, online shopping has become just as popular as regular, in-person, everyday shopping. Take China for instance, at present nearly 50% of retail transactions, in the world’s second-biggest economy, take place online. With this figure only likely to increase, what does the future hold for retail on the Internet, is the sky the limit? And on the other side of the fence, what about the so-called ‘’traditional” shops, is it all sadness and fear, is failure now a real possibility for the once packed high street?

B. HUGE PLACES TO SHOP FROM HOME

Over the last decade e-commerce giants like Amazon, eBay, ASOS, and Alibaba have become both widely known and widely used by consumers around the world. The way in which people can now effortlessly shop from the comfort of their own homes is making it all the simpler for people to part with their cash.

C. THE BIGGEST AND THE BEST?

The chances are that if you are reading this, you have probably at some point purchased something from Amazon. The size and wealth of Amazon is simply unbelievable. Each month their website has roughly 3.7 billion visitors, and to cope with this huge demand they employ over 1.6 million employees globally. While receiving bad press, especially in relation to the working conditions of their employees, is not uncommon for Amazon, it doesn’t seem to be something that deters their loyal customers. They come flocking back in their droves, attracted not only by Amazon’s huge range of products but also added bonuses the company provides, like Black Friday discount events or “free two-day delivery” offers for special members.

D. SHOPPING FROM THE PAST

The main victim of the growing dominance of online retailers like Amazon has been the high street, and the clearest evidence of that has been in the slow death of the previously loved department store. In the UK, departments stores used to be central to a weekend shopping trip. However, over the last five years 83% of department stores have gone bust.

E. SAVE OUR SHOPS

E-commerce became a viable threat to in-person shopping more than twenty years ago, but the traditional outlets remained slow to adapt or evolve, and investors seemed lost in coming up with creative ways in which these businesses could remain in the black. It is only now that ideas are being put forward in relation to UK high streets varying their offer. It is felt that changing the focus away from goods and moving towards services could be one solution. Providing entertainment studios, wellbeing and health facilities or concert venues and cultural and sports events might be a unique enough offer to bring people back, but only time will tell.

F. SHOPPING IN THE PALM OF YOUR HAND

So, where do we go from here? The next stage of the e-commerce revolution seems to be “m commerce”, which relates to mobile shopping and the fact that people are now more likely to use their mobile phones or tablet to fulfil their retail needs. The companies themselves have evolved to cater for this market and the majority of online retailers now offer easy-to-use apps with “click to pay” features. To further attract the digital generation, the e-commerce brands market heavily on social media, an approach which provides a flexible shop front which can make it easier to attract many more potential customers.

Sources: theguardian.com; reuters.com; independent.com; statista.com; www.ft.com