Question

In: Psychology

any statas or research on impacts of traditional retailing vs e commerce and the future?

any statas or research on impacts of traditional retailing vs e commerce and the future?

Solutions

Expert Solution

According to research data, i am going to clarify you the things.
As we know, Amazon is one of the largest companies in the world in terms of capitalization. It has sparked a revolution in e-commerce emulated by startups the world over. It is the benchmark for US e-commerce companies. However, there are some business analysts who consider its continuing growth as a reason for the decline of traditional retailers.
Notably, Amazon is the largest e-commerce site in the US. For 2018, an estimated 230 million Americans will buy online, resulting in $474 billion in sales. This figure includes retailers like motor vehicle and parts dealers, gas stations, supermarkets, and grocery stores. These segments do not have a large impact on e-commerce because online sales comprise only a small percentage equivalent to roughly 9% of total retail sales. Excluding market segments with limited online sales, e-commerce percentage would increase to 20%.
E-commerce is still growing. However, there are some segments of sales where it might not be able to totally replace. One advantage of e-commerce companies is their capability to diversify their product and service offerings, and to do it quickly. This is either through concessionaires or partnerships with established brands.

Traditional Retailers
Contrary to trends, brick-and-mortar shops are not going to disappear anytime soon. This is especially true for groceries, including fresh produce and canned goods. People still buy from traditional retailers. About 78% of American adults regularly purchase from traditional stores. In comparison, only 5% make more than six online purchases annually. In addition, only about 10% to 15% of US adults buy online at least once a week. This results in online stores achieving less than 2% share of the market for groceries and produce.
Statistics show that from 2001 to 2016, department stores lost 25% of their jobs, equivalent to 448,000 workers. Warehouse clubs and similar stores increased employment by 80%, equivalent to 841,000 workers. The retail industry had a flat growth but still managed to hire a net 645,000 new jobs. E-commerce, in contrast, had an increase of 334% over the 15-year period, which is equivalent to 178,000 workers. It is noteworthy that 75% of all e-commerce companies only had three to four workers each.
E-commerce is the future of retailing. However, most startups will be small and would continue to comprise the bulk of e-commerce sites. E-commerce is still in its infancy, and its growth will continue to outpace the rest of retail.


Related Solutions

How is e-commerce different from traditional retailing? Explain your perspective on the idea: “Seamlessly merging the...
How is e-commerce different from traditional retailing? Explain your perspective on the idea: “Seamlessly merging the online and offline worlds is the ultimate aim – how retailers and shopping center owners do that is what makes the retail sector one of most thrilling and pioneering around.”
3 paragraphs on Traditional Business versus e-Commerce
3 paragraphs on Traditional Business versus e-Commerce
Future of Artificial Intelligence(AI) in E-Commerce Businesses and the benefits of using AI?, Research paper.
Future of Artificial Intelligence(AI) in E-Commerce Businesses and the benefits of using AI?, Research paper.
How E - commerce is different from traditional commerce? Describe four differences with example.
How E - commerce is different from traditional commerce? Describe four differences with example.
Will e-commerce exports change the trade paradigm in the future?
Will e-commerce exports change the trade paradigm in the future?
Amazon Vs Walmart which giant will dominate E-Commerce?
Amazon Vs Walmart which giant will dominate E-Commerce?
What digital marketing age challenges that e-commerce presents for the future
What digital marketing age challenges that e-commerce presents for the future
What is the future of online retailing
What is the future of online retailing
What is e-commerce? Electronic commerce draws on technologies such as ? The main stages that e-commerce...
What is e-commerce? Electronic commerce draws on technologies such as ? The main stages that e-commerce passes through three stages ? Types of e-commerce ? Challenges in the e-commerce ? Traditional Commerce vs E-commerce? "with reference "
1. Describe the key factors that will define the future of e-commerce. Support your answer with...
1. Describe the key factors that will define the future of e-commerce. Support your answer with an example for each factor.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT