Or, will there be something even more efficient and beneficial for the consumers? All content and views published on here are solely those of the author of the piece and do not represent the views of Pewaukee High School nor the Pewaukee School District. Eventually, I feel like everything will just be done online and people won't be able to make those strong connections as well. Some large e-commerce companies employ many more though. In 2013, shopping center-inclined sales were estimated at $2.5 trillion, an increase of 2.6% from the previous year. Online retail sales are set to rise 17% this year to 204 billion dollars (Watershed Publishing, 2010, Paragraph 1). I also found this blog post quite interesting because it talks about something that the majority of people do monthly, sometimes even weekly. Personally, I would prefer going to the store because the item/s are easily accessible already and I don't don't have to wait for shipping. Also, while you mention that online stores will have a positive economic impact, you do not explain why that is. Also, in a world that's slowly becoming more environmentally concious, will online retailers lose business because of their lack of sustainable packaging? In order to verify the e-Commerce’s impact on China's economic growth, we collect data set as in table 1. The same goes for online retail employment--will that continue to increase, as well? It can give rise to frauds such as phishing, credit card scams, identity theft, hacking, bogus websites, and counterfeit products. Online shopping can also be very deceiving with how up to date the website is, a lot of the time before I go to the store I check online to see if that store has what I'm looking for but when I go to the store they end up not having it. 80,000 jobs eliminated is a huge deal and can also greatly effect the economy with unemployment rates. The Effects of Immigration on the American Economy. I was shocked to hear how many jobs online retail provided. We use the demand parameter estimates and the marginal costs (obtained from our system of first-order conditions) to assess the impact of the introduction of the online distribution channel on equilibrium prices and sales. For New Yorkers, shopping online means less travel time and, on occasion, lower costs. Now, instead of rushing Thanksgiving dinners and camping outside for the newest TV's. I also enjoy shopping at the physical store rather than online because of those same reasons. I always figured that online shopping was on the rise. Many people are shopping online, “National experts say that this year’s Cyber Monday, up to 106 million people are expected to log on and shop…” (Vespa, 2010, paragraph 7). However, it is true that the selection on online shopping platforms are vast and show more items that aren't in the store. Economic Impact Comparison sites like Google Shopping show a wide range of products and prices before you make a final decision so you can make the most of your budget. However, I feel like there is still a major environmental impact that these companies have. In a store you cannot look at thousands of customer reviews. Although, I never would have thought about it from an economic standpoint. Could they find more sustainable, safe packaging? Table 1. I never think about the people who run online servers, package products, produce products, and how they are employed BECAUSE of the boost in online sales. Black Friday is one of the most important shopping events around the world and this year, it is going to be bigger and better than ever. I just click a button on my cellular device and watch as the prizes decrease as more people are buying. It sounds almost fantasy, but it makes sense that companies as lucrative as Walmart and Target could be bought out by online companies. Would these stores be more resistant to a buy-out, or would they act like another pawn to grow Amazon and others even more? In my experience, I think online shopping is far more efficient than going to an actual store because your goods get delivered right to your door without having to leave the comfort of your home. The jobs that are less available from department stores, I believe are just from them becoming bankrupt. I agree with this post. In the first two months of 2017, China’s online sales dramatically reached US… Almost three-quarters of e-commerce companies have only three or four employees. Whilst growing rapidly, it should come as no surprise that the online shopping industry will also have to cope with side-effects such as damaged goods, delivery time and costs, and online fraud. This post is interesting as it shows the relationship between the separate parties of physical and online. Online shopping can curb impulse shopping, and browser plug-ins like Rakuten help you get cash back when you shop. Online … I am a huge online shopper and I didn’t realize how much I did it, until after reading this and realizing I don’t know the last time I went to an actual store. I personally prefer to shop at a physical location just because of sizing can be different with different brands. This was very interesting to read and learn about. The main reason that I find online shopping so great is because it is so convenient, which you mentioned in your article. With this in mind, online shopping will probably become used more often by the majority of people. But on the other hand online is very convenient when you don’t have much time to go to a physical location. They don't have to take time out of their day to go to the store and rush to what they need/want. Online shopping will continue be more and more convenient and popular but until that transformation, online shopping now is effecting some negatively more then positively. But online shopping comes with its own drawbacks and it is time that we took a closer look at some of them. While the advancements in technology will most likely continue to eliminate some of the jobs currently available in our society, my hope would be that people will also continue to realize the advantages of services and products provided by physical, attainable people and places. They are often considered as secondary but will be key in the growing competition to differentiate the partners: Lastly, considering European Commission figures, Individuals Having Received Wrong or Damaged Goods or Services when making Online Purchases in the EU28 increased from 5% to 6%. As the biggest consuming market in the world, it has acquired the leading position in the e-commerce market. Though online shopping is boosting the US economy, I think that this increase in online shopping and decrease in shopping in-store has more of a negative affect than a positive affect because of the loss of thousands of job positions and the lack of interaction that continues to increase with people today. This study find out nine factors which ecommerce affects economic growth as a result of the Consumers no longer hold the same mentality as before. Not to mention how retailers had fired over 200,000 people in person and then online employment started to rise. Those two already have quite the online presence with their websites, even allowing certain orders to be placed for delivery. In 2014, 33.5% of total retail growth in China was contributed from online saleswith the amount of US$458 billion according to Kantar Retail. It is something I like to do when I am bored and it is a fun way to find clothes without doing anything really. I would be interested to know if the decrease in department stores affected the other branches that you mentioned were NOT affected, in a sort of chain of events manner. The COVID-19 global pandemic is having a profound impact on consumers’ lives. Diversion ratios. However, I would be interested to see how the increase of online shopping effects online customer service reps that you may talk to when you are having trouble purchasing something. Here is why online shopping is cheaper than shopping at physical stores: Very often the prices of products sold on the web are discounted. However, the most interesting part of this article is the number of jobs being created. Online shopping only applies to the newest generations so the firing of so many employees could still hurt companies right now. A recent U.S. Department of Transportation study found that online shopping will be a major contributor to the 45 percent increase in freight traffic on U.S. roads every year by 2040. However, I think this makes it much easier to spend more money than you plan to. The main cause of this chasm is the emissions produced from the customer driving to the store. Retail stores use a sort or stock market method while online banking and shopping use more of a trade and go method. Online, we can find many different sites that offer digital coupons and allow the consumer to complete the purchasing process easily. The blog really highlights how something so convenient can impact our community which I thought was intriguing. While the online shopping industry has caused some people to lose their jobs, it also has created jobs because when the websites crash, there needs to be people to help bring the website back up. I do agree that economic befits will follow as the flow continues whether it is online or in real life retail. Ecommerce offers shoppers lower prices and a social shopping experience, which can be leverage to accelerate growth, even during difficult economic times. Online retail sales are set to rise 17% this year to 204 billion dollars (Watershed Publishing, 2010, Paragraph 1). In 2012, state sales tax revenue from shopping center-inclined sales totaled $137.6 billion, up from the $131.6 billion collected in 2011. Apart from snatching away a giant portion of the market from the retailers because of the comfort they provide, they have highly influenced their buyers persona as well. Choosing the right product: Since you are planning to shop online, it would not be possible for you to try on the new blazer or the brand new jeans that you have set your heart on purchasing. Online shopping is becoming more convenient. The aspects of the affect on job market were interesting to learn about and made me more aware to its impact on the economy. Its like in eras past with industrialization, producing more markets because of the boost in manufacturing productiveness. Purchasing products or services over the Internet, online shopping has attained immense popularity in recent mainly because people find it convenient and easy to shop from the comfort of their home or office and also eased from the trouble of moving from shop to shop in search of the good of choice. I think when you online shop it takes the purpose away of actually getting out of the house and go to the store. That being said, I wonder if this is eventually going to work like some massive merger. Will department stores and other in-store retail locations be completed phased out or stabilize? Face to face interaction is a very important part of life and is can bring us joy and relationships. This study finds a positive relation between the online shopping stimulators and shopping behaviors of respondents. Loom more into retail store and online banking. “Online shopping is definitely more eco-friendly than brick-and-mortar shopping,” argues Navodit Babel, GreenStory’s co-founder. To maintain online shopping websites, it needs a lot of programmers, such as, analysis programmer, database administrator, security programmer, web designer and etc. If people are online shopping at these certain stores such as Sears they would still be in business. There are many shopping sites where they connect to customers only through online shopping which is unfortunate because sometimes it's nice to actually go into a physical store and many times the store can go unnoticed because there isn't a physical store that people can go into. The Impact of e-Business on Society. I was always aware of the fact that online shopping is going to take over one day, but never did I look at it from an economic standpoint. However, I think the online shopping industry has helped the economy more than it has hurt it. Personally, I think that the reason physical stores are starting to fail is because of the cost and different discounts. Being the most bustling day in the US and now in the UK as well, Black Friday is not a federal holiday but is a public holiday in some states. I am definitely not surprised that having online shopping boosts the economy, because as I said, it is much more convenient for many people. In addition, do you think it's possible for department stores to be able to regain their popularity through new marketing strategies? While the online shopping industry has caused some people to lose their jobs, it also has created jobs because when the websites crash, there needs to be people to help bring the website back up. Many well-known stores aren't going to make it. Are you wondering why? This shopping event is used to describe a “Pre-Christmas” day of high commercial sales. Moreover, these types of jobs would likely be distributed a bit more evenly across the country. I guess that's just the opportunity cost though, there has to be a give and take in every decision, and people would rather have online shopping than more jobs. This blog is very interesting in that it shows both the pros and the cons to online shopping, or rather, who it affects and who it does not. Its definitely something interesting to think about but time can only tell. Online shopping could reach 20% of all retail sales by 2025, so there is further disruption ahead for the sector. This process will be helped by increased online sales in categories with low penetrations thus far, like grocery shopping. This post is a very interesting and different one. I also feel that the growth and involvement of technology in growing generations has also been a key factor in the growth of online shopping. Something I haven't really noticed though is less people working in retail or department stores. Occupations in maintenance, factory, and even health-related fields are becoming more and more commonly replaced by advanced technology. Thus it has a large economic impact. Online sales have surged in recent years, but employment by online sellers has not equalled the displacement of workers from physical stores. I personally enjoy shopping by going to the store and finding clothes that way. I agree with what this post is saying. [Show full abstract] impact of motivational factors on online shopping. Yes, department stores have failed to make their business successful but that is not from online shopping. Online shopping is something people do constantly but never really think of the effects that it may have on others. Customers also have t… It has improved operations through greater use of electronic book-keeping and records management. One-third of men, compared to 25% of women, reported the pandemic affecting how much they spend on products. As a result, their economic well being is lower. Something really sad that I found in your article, is how many physical and in-store jobs have been taken away in only the past few years. Online storefronts require fewer employers to operate them. A business with a successful model and a loyal customer base brings in employment, and tax revenues for the local government.Elsewhere, the retail industry has seen its shares of downs lately, and probably entirely attributed to online shopping. The first thing I thought of when reading your post is Black Friday Shopping and the popularity of that has even moved to online access. Currently the "last mile" of freight movement is highly inefficient, creating noise and air pollution in neighborhoods. Innovation is a key driver for economic growth. It means that online shopping website is giving more opportunity for … I personally will miss my late night Meijer runs with my mom one day. It is too much work to order something and not having it fit so you have you have to send it back then again wait for the right size to be delivered to you when you can just walk out of a store with the item in hand. (KEVN) - The pandemic continues to impact small businesses, and with online shopping, some may wonder what this could mean for the local economy. The price which the online shopping sites fix are very low. When I go to shop at places in the mall, I can definitely see a decrease in employees and I didn't really think much of it but after reading this post I understand the probable reasoning behind that. The plus with online shopping is that it is at least boosting the overall US economy! It's a bit sad to think that most stores are going out of business since everyone is buying online instead. Especially with websites like amazon, you can be looking at 10 times more the number of retailers than you would in a physical store. It would be interesting to find out how the ripples of this event are impacting all the other types of sellers. As society begins to develop more efficient ways to buy stuff the market it tends to shift over to that. Create your own unique website with customizable templates. Well, Therefore, it doesn't surprise me that the department stores are low in staff due to the excessive online shopping. The COVID-19 pandemic has made those challenges even harsher. Undoubtedly, online shopping has severely influenced retail stores. Not only does online shopping takes away the point but it also creates less jobs like you said. How technology transforms wants into needs has significant impact on developing new habits such as online shopping, online dating, or online anything. These companies are not including the cost of manufacturing pollution, trash left over from packaging, and constant air pollution that is harming our public and environmental health. The fact that 200,000 people have been unemployed and 80,000 jobs have been eliminated all together was a consequence of online shopping that I never even thought might result. This comment has been removed by the author. I agree with what you have written. Internet shopping has become an effective way of boosting an economy by increasing demand, expanding consumption and promoting employment. Additionally, I agree that online shopping will continue to increase based on the positive outcome for costumers. Amazon buying out common grocery stores and absorbing some of their employees to work for them and maintain relationships. Opportunity Cost of Fraud: Is it Worth it? I learned a lot from reading this, like how unemployment rates are growing because of the online shopping. However, while I am convinced that convenience plays a large role in the growth of online shopping, I believe that price and features are huge factors as well. 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