Increasing importance of e-commerce and m-commerce (online shopping)
The Internet
The internet has had a significant impact on distribution channels, and a number of goods are now distributed digitally, eg music and books. Traditionally, most consumer goods have been sold through A store (or person) that sells products directly to customers., but this is changing, as more people are now shopping Connected to and using the internet..
E-commerce and m-commerce
E-commerce refers to the buying and selling of goods and services online. It includes any transactions between businesses carried out online.
M-commerce is any business transaction that takes place through a mobile device such as a phone or tablet. refers to the buying and selling of goods and services online through a mobile device. It includes any transactions between businesses carried out online, often through a mobile app or a website accessible on a table or mobile telephone. Many businesses now offer an m-commerce option for customers to purchase goods and services.
There are a number of benefits to using both m-commerce and e-commerce, such as:
- they are open 24/7
- purchases can be made from any location
- products and services can be delivered in a range of locations
- they make it easier to purchase products from overseas or far away
- they provide a much larger target market for businesses
The impact on physical retail outlets
Physical retail outlets have been hugely impacted by the increase in e-commerce and m-commerce. Far fewer people are now going out to shop in physical retail outlets, which has meant that businesses have had to adapt in order to survive. Some impacts on physical retail outlets include:
- Several businesses have closed down completely, or moved online.
- Some businesses have When two or more businesses join together to operate as one business., meaning there are now several similar businesses operating from one premises.
- Businesses are closing shops and opening click and collect points within supermarkets.
- Many smaller shops on high streets have closed down as they are unable to compete.
- Some types of retail outlets, such as clothes shops are still relatively popular and have stayed open. Many of these businesses now offer multi-channel distribution.
- Retailers specialising in CDs and DVDs have been almost completely replaced by an online alternatives such as music and video downloading and streaming.
- Supermarkets are also now offering online shopping and delivery options and the number of people visiting physical supermarkets has declined.
