E commers
Name: Nikunj Patel Course(sect.): COMM 1133(05)
Teacher: Keith Hobbs Date: 26th Nov 2014
Impact of e-commerce on traditional bricks and mortar retailers
21’st century has brought tremendous development of information technology ,and brought innovative and unique ideas to the whole world. Adoption of information technology ,internet and computer network have transformed the mode of operation of many business. E-Commerce has become the market trend of the century, it has came up with a unique way of business strategy, particularly in terms of pricing, convenience and product availability that draws consumer attention to buy products/goods online rather than through traditional bricks and mortar retailers.
Taking about the most important factor that attracts consumer towards e-commerce is low pricing. Online stores only need to manage inventory in a warehouse, one store can serve all consumers. This allows them to focus on price , as their fundamental operating costs are typically lower. Hence online sites puts daily deals and offer cheaper pricing on products. “Most admit ,offline discounts can hardly eve match what’s on offer online”(Anonymus,2014,Retailers stumble as traffic heads to e-commerce sites, paragraph 3).Apart from that ,online sites have now started their own brands. ”So instead of taking clothes from, say Calvin Klein and selling them over the web, companies are now making their own clothes. This allows them to match traditional competitors on quality while undercutting them on price”( Colao,J. 2014,Top brands now start online). Thus low pricing forms the core benefit of online shopping.
Online shopping is similar to any other online activity such as banking, that is convenient for the individual. People place a premium on their time, and online shopping allows them to run errands while at work or during the evening when stores are not typically open. Items are delivered right to the door ,in a day or two if desired. “ Its using
Teacher: Keith Hobbs Date: 26th Nov 2014
Impact of e-commerce on traditional bricks and mortar retailers
21’st century has brought tremendous development of information technology ,and brought innovative and unique ideas to the whole world. Adoption of information technology ,internet and computer network have transformed the mode of operation of many business. E-Commerce has become the market trend of the century, it has came up with a unique way of business strategy, particularly in terms of pricing, convenience and product availability that draws consumer attention to buy products/goods online rather than through traditional bricks and mortar retailers.
Taking about the most important factor that attracts consumer towards e-commerce is low pricing. Online stores only need to manage inventory in a warehouse, one store can serve all consumers. This allows them to focus on price , as their fundamental operating costs are typically lower. Hence online sites puts daily deals and offer cheaper pricing on products. “Most admit ,offline discounts can hardly eve match what’s on offer online”(Anonymus,2014,Retailers stumble as traffic heads to e-commerce sites, paragraph 3).Apart from that ,online sites have now started their own brands. ”So instead of taking clothes from, say Calvin Klein and selling them over the web, companies are now making their own clothes. This allows them to match traditional competitors on quality while undercutting them on price”( Colao,J. 2014,Top brands now start online). Thus low pricing forms the core benefit of online shopping.
Online shopping is similar to any other online activity such as banking, that is convenient for the individual. People place a premium on their time, and online shopping allows them to run errands while at work or during the evening when stores are not typically open. Items are delivered right to the door ,in a day or two if desired. “ Its using
References: 1) Anonymous. (2014). Retailers look to merge offline and online shopping experiences in 2014.E-marketer 2) Anonymous. (2014). Retailers stumble as traffic heads to e-commerce sites. Business Standard. 3) Colao , J. (2014). The future of shopping in three trends. Forbes