Question

What factors have led to the growth of online retailing in the last fifteen years?

Answer 1

Online retailing has grown at break neck speed in the last fifteen years. The reasons behind it are:

1. Higher internet penetration – Internet penetration across different parts of the world has increased due to launch of cheap and affordable mobile devices as well as due to launch of new age technologies of 3G and 4G at reasonable rates. These factors, along with higher broadband penetration as well, have led to higher smart phone usage, and greater level of digital literacy. This contributed to exponential growth of online retailing.

2. Higher degree of convenience – Online buying offers a much higher degree of convenience to consumers when compared to buying through brick and mortar stores. Consumers and buyers are becoming busier and busier and thus have less time to commute to a brick and mortar store and then shop. Online retailing offers them the convenience to buy from the comforts of the home without the need to commute or travel.

3. Easy payment options – Online retailers offers different payment options like internet banking, credit and debit cards, digital wallets. Most of the online retailers also offer options like converting high amount transactions to equated monthly installments (EMIs). All these options make it easier for a buyer to consider buying through an online retailer.

4. Choice – Consumers have the option to choose from a greater selection and variety in case of online retailing than in case of shopping through brick and mortar retailers. This has led more and more number of buyers to shop through online retailers, thus contributing to their growth.