Online Shopping Defining the Fate of Retail Stores

Document Type:Thesis

Subject Area:Business

Document 1

Products and services these days are just a phone call away from the consumers. This trend is global just like the advancements in technology, which no doubt is the accelerating factors in popularizing online shopping. Consumers seem to be overwhelmed by the services of online shopping. The century of caging the performance of the economy by looking at the number of people carrying shopping baskets has long gone. Thanks to the rise of the internet. Looking at the statistics comparing the performance of online shopping to in retail stores, one gets shocked at the way online shopping has overtaken the physical retail business. The rate of growth has been a doubling speed with about 2. percent share of the total retail sales in the 1990s and more than 10 percent in 2017. Entrepreneurs who want to see their businesses survive in the next five years or decade in some parts of the world bearing in mind that this development is directly dependent on technological advancements, which varies from one country to another. Entrepreneurs should, therefore, be more creative and think beyond today, next month, next year and even next decade when setting up business ventures. Introduction A good number of the retail store have closed down in the recent years. Some of which were among the leading well-established supermarkets and shopping malls. Even the service industry has changed and become flexible such that consumers no longer move to premises for services. People just not to login into webs and check through the available service and product with their prices and then make phone calls and the service or product is rendered at your doorstep.

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Retail store owners have found themselves in a situation where they must reduce their prices to compete with the relatively low prices by the online shops. Even bookings and ticket are bought online; even airplane tickets leave alone movie and cinema ticket. This trend report is looking at the possible reasons that have led to the rise of online shopping, comparison with the traditional retail store that stock goods and evaluating the fate of the two business in the coming years. Despite the numerous advantages of online shopping to both the owners and customers still, they will be reasons why retail stores will still find people to serve. This trend report will analyze data on the two business types to avail information that would help entrepreneurs to make an informed decision about their business ventures.

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Buyers, on the other hand, will have a clear picture of these two business types and also be able to go for the best. Source: Census Bureau data of U. S Impact of Online Shopping on Employment A shift to online retailing come with a lot of challenges in the employment sector. Companies cannot afford to pay employees to work in a store if it doesn't generate returns. Therefore companies will hire more workers during festive seasons and less during the ordinary days. Employment in the levels may not change much concerning numbers but only improved in the sectors. The companies that engage in online business either delivers the goods to the buyers for free or in some cases a minimal delivery fee charged. Even when the delivery fee included, the overall spending does not exceed what one would have spent in the retail store.

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Most online shopping websites give special discounts and redeemable points. There is no pressure shopping online. Long queues in the cash counters, especially during the festive seasons is never a problem in purchasing products online. This is worse when misleading images, especially of electronics, are posted. Lately, fraud has become common in the online shopping websites. Buyers have to take extra care not to fall victim of cyber-crimes. Just like retail stores experiencing massive sales during the festive season, online shops have their boom during the Black Friday and Cyber Monday. Last year, sales amounting to $3. The overhead cost for these storefront owners still accrues. Selling online helps save expenses of marketing. No fees are incurred in printing posters instead posted on social media where the number of customers likely to see it is high.

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Rating by the customers who once by from an online retailer creates confidence and build an excellent reputation for the company unlike in physical retail store. This rating by customers in itself justifies your prices thus customers would not bother much with slight price differences that may exist when compared to the competitors' hence resulting in continued profits. The trend is on the rise with urban Centre leading and a few rural areas following. The improvements in the technology levels that has led to nearly three-quarters of the world's population accessing the internet either through mobile phones, computers, and other electronic gadgets thus making the online selling success. In the United States of America, about 50 percent of the population buys goods online. Online retail started majorly with products, especially electronics and bulky machines that require importation.

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Today, even fast is ordered online and delivered at the customer's doorstep within minutes though it depends on how far one is from the stores. List of Resources 2018, https://www. quora. com/What-is-the-positive-and-negative-impact-of-online-shopping. Accessed 27 Feb 2018. Advantages Of Online Shopping And Its Disadvantages | Ebay". newyorkfed. org/2017/10/how-is-online-shopping-affecting-retail-employment. html. Accessed 27 Feb 2018. The Advantages Of An Online Store For A Business Owner". Accessed 27 Feb 2018. The Rise Of Online Shopping And The Effect On Retail Stores | Find Useful Data On Commerical Real Estate Properties | Reonomy".  Reonomy. Com, 2018, https://www. reonomy. Dotts, Kylie, and Derek Dewitt. Advantages And Disadvantages Of Online Shopping".  Money Matters | All Management Articles, 2018, https://accountlearning. com/advantages-disadvantages-online-shopping/. Accessed 27 Feb 2018. Starr; Sushil K. Gupta.  Routledge Companions In Business. Taylor And Francis, 2017. Pycraft, Mike. iol. co. za/business-report/economy/online-shopping-puts-traditional-jobs-at-risk-1625721. Accessed 27 Feb 2018. Tompkins, James A, and Jerry D Smith.

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