Major retailers in the United States have been closing their doors to their brick and mortar stores. A grand majority of these decisions have come in after a surge in online shopping which has put up fierce competition against brick and mortar retail stores. Online retailing offers convenience and consumer choice in ways never seen before the advent of technology. Some major retailers have closed their doors after filing for bankruptcy and not being able to turn a profit, while others have closed to become more competitive by entering the online shopping market (Close, 2016). Online shopping offers both advantages and disadvantages, like the loss of the in-store shopping experience, for example. However, it seems that consumers are willing to take risks involved with online shopping to get the convenience they crave. According to a PWC poll in 2015, 35% of shoppers say they intended to do most of their shopping on Black Friday in-store, down from 59% compared to 2014 (Jones, 2017). Some of the contributions to a sales downfall on Black Friday has been affected by Cyber Monday, a day dedicated to online and “cyber” shopping that eliminates the need and pressure of visiting the crowded and rowdy store right after a hearty meal. The decline of Black Friday, the rise of Cyber Monday and the declining store locations for major retailers, who have closed their doors to the public, is a sign of the changing needs, wants, and preferences of the general consumer population after the rapid changes of technology and development of e-commerce. Therefore, there is a strong need to find out, how has e-commerce affected the way people do shopping.
Traditions have changed and enabled people to shop at the click of a button or tap of a screen. For most purchases, consumers can get it as soon as they want it. Thanks to this “spoiling” of consumers and contributing to the new economy, e-commerce remains on the rise. As a result, there are several major trends that shape online shopping nowadays. First of all, it is necessary to define e-commerce. Electronic commerce refers to one’s opportunity to sell and buy services and products, using the systems of online payments and internet banking (Dey, D’Souza, & D’Souza, 2015, p. 189). On the basis of such a phenomenon, the concept of mobile commerce emerged, becoming one of the most important trends. M-commerce uses handheld devices as an instrument, which makes this branch especially beneficial. As long as m-commerce does not require fixed location, people get the possibility to shop anywhere and anytime. The nature of e-commerce is innovative, meaning that all the participants of the process are forced to adapt to new trends every day. Another critical tendency is the development of visual communication with the customers. The contemporary studies reveal that there is a direct correlation between the online store image and consumers’ readiness to shop (En-Chi Chang & Ya-Fen Tseng, 2013). Since e-commerce does not imply face-to-face communication, the strategies used by advertisers and marketers become more and more sophisticated.
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Although some retail stores are closing because of the development of online shopping, these branches can co-exist. There is no doubt that the most obvious impacts of e-commerce and m-commerce on the brick and mortar stores are negative since competition is mounting. Technical progress has stimulated the development of innovative instruments that seem to be attractive and convenient for ordinary consumers, as well as useful for the businesses based on the online purchasing. However, the long-term perspective is still promising. For example, the study conducted by Dey, D’Souza, and D’Souza (2015) suggests that offline stores can “be turned into dealers and delivery drop off points” for e-commerce websites. According to the scholars, many areas all around the world face problems with delivery and online payment, since they are not ready for the latest trends (Dey, D’Souza, & D’Souza, 2015, p. 190). Here, the model that allows cooperation between online purchasing and offline service appears to be beneficial for both types of retailers. The representatives of e-commerce will become more reliable in the eyes of consumers, whereas offline stores will be able to ensure their income.
People are turning to online shopping because it is convenient, cheap, and engaging. According to Jones (2017), consumers become more skillful at online shopping, being attracted by price (63% of consumers), free shipping, and promotions (39% and 37% respectively). In the same way, the whole branch of retail industry turns to online business because it is cost-effective, innovative, and prestigious. The modern-day diversity of goods and offers requires active participation in the development of new business strategies. In order to compete and stay afloat, companies use all the available instruments. For example, they organize corporate parties, trying to get members’ loyalty and support, attract new customers by focusing on younger shoppers and their interests, promote their own websites, and implement new ways of communication with consumers. All these activities are crucial, as long as they help to “grab shoppers who can now get much of what they need from online giant Amazon and other e-commerce sites” (Jones, 2017). From the point of ordinary people, such processes are advantageous because retail industry becomes more customer-focused, whereas global businesses consider this competition to be an impetus for change and progress.
The strongest features of online shopping are its convenience and rapidity. However, online shopping has certain drawbacks as well, including online purchase scams, stealing personal information, false advertising, and puffery of products. Traditional shopping is replaced by online commerce because of the extensive growth in internet accessibility and the emergence of such devices as laptops and smartphones. According to En-Chi Chang and Ya-Fen Tseng (2013), the visual representation of the products on the company’s webpage “influences purchase intention through perceived value” (p. 864). The scholars suggest that online retailers should work hard to create a positive online image of their companies to make profits because this image influences consumers’ desire to make purchases to a large extent (En-Chi Chang & Ya-Fen Tseng, 2013, p. 864). While lacking the contact with the product, people will rely on images and impressions they create. Therefore, the whole process of purchasing gets faster. However, it also becomes riskier. McEachern (2018) mentions that March 2018 is claimed to be Fraud Prevention Month in Canada, devoted to the identification of most frequently reported scams. According to the author, those people who use credit cards tend to suffer from online purchase scams, being conned out of millions of dollars every year (McEachern, 2018). This statement is also supported by Barlas (2004), who claims that identity theft scams appear to be one of the biggest problems of the contemporary world of e-commerce. The author discusses the issue of phishing, which refers to fake e-mails that direct consumers to phony websites (Barlas, 2004). Fortunately, all the biggest e-commerce platforms are aware of these threats. Amazon, eBay, PayPal and other online companies take care of their customers, trying to make the process of purchasing safe and pleasant.
Most assumptions related to online shopping are optimistic rather than incriminating. There is no doubt that the emergence of e-commerce has affected the way people do shopping, as well as the way companies sell their products. Due to constant innovations and inventions, online shopping becomes safer every year. People all over the world enjoy lower prices, convenient delivery, and excellent service. While consumers spend more money on goods and services available online, businesses develop useful software that can help to identify possible scammers and neutralize them.
- Barlas, P. (2004, May 28). “Phisher” Con Artists stepping up attacks. Investor’s Business Daily, Inc.
- Close, K. (2016, June 30). 12 major retailers closing stores like crazy. Money. Retrieved from http://time.com/money/4386499/retail-stores-closing-locations/
- Dey, R., D’Souza, R., & D’Souza, J. (2015). Relationship between Brick and Mortar stores and m-commerce facilitates customers towards shopping online. Educational Quest: An International Journal of Education and Applied Social Sciences, 6(3), 189-196.
- En-Chi Chang & Ya-Fen Tseng. (2013). Research note: E-store image, perceived value and perceived risk. Journal of Business Research, 66, 864–870.
- Jones, C. (2017, Nov 08). Black Friday is losing some of its gold to online. USA Today. Retrieved from https://nuls.idm.oclc.org/login?url=https://search-proquest-com.nuls.idm.oclc.org/docview/1961509835?accountid=25320
