Internet as a threat to the high street

Index

Internet as a threat to the high street
Introduction
Ever since its creation, the internet has developed drastically. One of its focal areas is internet shopping, which is vastly becoming more popular during the last few years, which led to the factor of increasing consumerism to a point almost beyond recognition. For those who have access to the internet, they are granted the privilege of a vast choice of not only physical but also digital products which have always been subject to availability in the high street.
Types of shops
Nowadays retail establishments can be fragmented into three classifications. Those constructed solely in physical retail shops, those assembled around the concept of both physical shops and online shopping, and also Ecommerce which is exclusively online shopping.
History
Before anyone was able to obtaining goods online there were only limited ways where people were able to purchase products. One of the methods was to go to the high street and inside the stores. Alternatively products were acquired by teleshopping, where you would call a number, usually advertised on TV, and give your credit card details. Nonetheless giving credit card details over the phone is very unsecure as other individuals could perhaps be listening to your conversation over the phone and be granted with all your credit card and personal details. Although when online shopping initiated security was also one of the primary concerns. Due to the result of inexperienced online shopping developers, hackers would continuously be lurking on every corner to infiltrate the system and steal your details, which made its way into the mainstream media very rapidly being known as identity theft contributing to its foremost drawback. People began to distrust Ecommerce, so as it appeared it was predestined to fail as suspicion continuously arose. While we may possibly still be at risk today, thanks to innovative technology and security software makes it a lot easier to look past Ecommerce’s preceding events.
Example of Ecommerce
The two titans of Ecommerce are currently Amazon and EBay. Amazon spectacularly accomplished to generate an area where they would have infinitesimal amount of shelf space by hosting it over the internet. While EBay competently created a sort of garage sale where auctions for possessions and merchandises would be proficiently held online for millions of people to bid. So by means of interesting ways to use old paradigms they were able to magnificently erect the idea of business strictly administered online.

Processes
The consumer will surf through the website finding products they like and will click to add it to an electronic basket. After all the shopping is done, the customer will be redirected to the check out where they will have to enter their billing and delivery address along with their credit card details. If the payment transaction is successful the item will then be downloaded (if the website offers the capability for digital content) or shipped to you.
Advantages
Due to the innovative cutting-edge technology, customers can customize their purchases and see the finished product on screen. It is extremely convenient to shop online, as you could do it whatever time it suits you best, as you will always get a twenty four hours a day, seven days a week to make your orders, without even having to leave the comfort of your home and going to the congested shops. Consumers who live in remote locations are benefitted as they have access to products with further ease. The stock availability is also amplified as you can now order form further distant stores without having to travel for extensive periods of time.
Due to the interactive shopping experience, people can now simulate orders to have a notion of the amount they will be spending. Consumers will also have a further choice in the products they want as shops are able to store a large amount of products online as in the website they will have infinite shelf space. Products are often described with text, images or multimedia files and are usually followed by product reviews and ratings from the customers that have previously obtained the same product.
The establishment of price comparison websites made it much easier for clients to find preeminent deals. Shop bots would search for the same product in various different websites then locate and display the list of the results for the user to select the best deal.
Disadvantages
As mentioned earlier, internet security has increased, but there will always contain the risk of a hacker infiltrating the system and gathering your credit card details. While surfing the web you may also encounter fraudulent websites, which appears to be similar or at least comparable to several other ordinary websites, but with the intention of getting the consumer to input the credit card details to attain and steal their information. Privacy is also one of the main concerns, many stores tend to send out the customers personal information (usually email address) to other companies so that they can send spam or by using telemarketing to advertise their offers. Although stores can still do this by checking the credit card details at the checkout and adding customers to the mailing list without them knowing, this can be avoided by paying in cash. If online shopping continues to increase directly proportional to that which it is increasing now most of the orders will be done online, hence a severe reduction on the number of staff available will be needed, generating more unemployment. If the demand from stores decrease their funds will also decrease, consequently the business will have to shut down. Internet shoppers cannot expect after sales support or before sales assistance from the retailer. Business who do possess internet shopping capabilities are heavily dependent on courier services to deliver the products, hence immediate access to the products will be impossible, and due to that profound reliance they cannot do anything if the product is undelivered except send another one out and expect that it will reach the consumer after a certain period of time.
Although consumers may customize the product online to their taste and some website might give you the dimensions, customers with no awareness of space will find themselves in trouble when they are delivered a product excessively small for their use or even disproportionately big for further conveyance. Customers who are not very perceptive might miss an important detail which may not come to their fondness, or the item itself might be missing a vital essential which the customer initially thought it possessed to suit their necessities. When going in store products are usually available for the customer’s direct inspection. There is also a cost disclosure, you might think that it is easy to compare the base price of a product, but some websites tend to omit the price of the delivery or even VAT until you are about to pay at the checkout screen.
Effects
I see the effects of internet shopping as similar to the effects of when the big supermarket chains started making their ways into small towns. They were rapidly taking all of the clientele and the small shops were being forced to close down. This is what’s happening to the shops in the high street that do not adapt or cannot compete with internet sales, their sales will face a maybe drastic but continuous decrease until they are no longer making profits and have to be shut down.
Legal and ethical implications
With internet consumers could order content that is not obtainable in their countries, which may consist of prohibited good or illegal drugs, even though there is a very decent chance that they will be confiscated at customs, there is always the possibility they might fail to spot it. Internet law is a grey area, but the general rule states that the website must abide by the laws from the country that it is being hosted.
Music can now be downloaded from the shop’s website or from websites dedicated to selling music such as iTunes in the form of digital download. One of the main legal issues is the illegal downloading of music. The music industry has been slow to react and has done very little to prevent this. People will use what they call peer-to-peer file sharing or torrents to leach off of other people who have purchased the content.
As far as ethical implications go it could be done by the internet in inestimable ways. For example the downloading of music and software cutting back in the sales and revenues for their producers. Also an additional ethical issue I came across is the problem travel agencies are suffering. Customers will walk into the agency, request for their expert recommendation and read the brochures. Subsequently, after gathering all the information they would go home and book a holiday online, which means that it will be more economical, but the travel agent who did all the researching effort or influenced the client will get on no account any commission.
Social implications
Lower class will mostly be affected by it as retailers and clerks will lose their jobs when the shops that cannot compete have to close down, while website developers and programmers will be required.
People who are not computer literate like the older generation will be disadvantage as most do not know how to navigate online or even how to use a computer efficiently.
Economic considerations
Internet websites always seem to give web exclusive offers, therefore to be able to get the cheapest offers, customer will have to go online and no longer obtain their products at the shops.
Solutions
To resolve these problems businesses need to take immediate actions and set up on store sales instead of web exclusive sales. For the travel agencies example, they could charge a small fee for consultations so the customers will be willing to book holidays all in one go rather than to go home and book online.
Companies should try to not display all their content online, teasing the customers to go in store to find out what further products they are being offered. Also companies should business no business commerce exchanging products for a cheaper rate and maximising profit.
Conclusion
It is of no uncertainty that the internet has been immeasurably increasing and executing actions that were unimaginable previously. Online shopping is one of the core commercial developments and that does place the high street in under a great deal of pressure to sustain with the sales. However, people ought to realise that like the supermarket example, which when constructed in remote locations they were taking small shops out of business, it is a good thing as it offers a wider variety of products and prices. Online websites are now very robust and secure, which greatly eliminates the possibility of hackers infiltrating and stealing personal details. Business will suffer from it, but they also can benefit from the business to business commerce which could permit them to run their businesses more lucratively. So all in all I do think that Ecommerce and the internet are both positive, business who are affected should learn to endure and adapt as there is a lot to be done to survive commercially.

Bibliography

Wikipedia: Online shopping
Collection of material on the process, advantages and disadvantages of online shopping
(notes adapted from http://en.wikipedia.org/wiki/Online_shopping)

BBC News: Internet steals march on High Street
Collection of material on solutions, advantages and disadvantages
(notes adapted from http://cdnedge.bbc.co.uk/1/hi/business/2787307.stm)

Article base: The history of online shopping
Collection of material on the history of internet shopping
(notes adapted from http://www.articlesbase.com/business-articles/the-history-of-online-shopping-782679.html)

Enzine articles: The increase of internet shopping
Collection of material on advantages and disadvantages of online shopping
(notes adapted from http://ezinearticles.com/?The-Increase-of-Internet-Shopping&id=347365)

The fit map: Online shopping
Collection of material on convenience and advantages
(notes adopted from http://www.thefitmap.co.uk/articles/shopping/online-vs-high-street.htm)

NG Retail: Internet vs. High Street
Collection of material on advantages and benefits
(notes adapted from http://www.ngretaileurope.com/article/internet-vs-high-street/)

Price Runner: Online Shopping vs. High Street Shopping
Collection of material on convenience, security issues, advantages and costs
(notes adapted from http://newsroom.pricerunner.co.uk/1738/news/online-shopping-vs-high-street-shopping-part-one/)

Minesh Patel’s report: Internet bookshops Vs. High Street Bookshops
Collection of material on the comparison of both ways of shopping
(notes adapted from http://dagda.shef.ac.uk/dissertations/2002-03/External/Patel_Minesh_MScIS.pdf)

Bibliography: Collection of material on advantages and disadvantages of online shopping (notes adapted from http://ezinearticles.com/?The-Increase-of-Internet-Shopping&id=347365)