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Ecommerce Effect on Retail Stores

by Bank Ifsccode Search Bank IFSC Code

Online stores are emerging in the world like never before. Online shopping sites provide products photos, videos and reviews which promote convenience among the buyers. Also you don’t need to visit the local stores for information regarding the product you like.

From its start in the year 2000, the e-commerce industry is projected to reach Rs.13,97,800 crore by 2027. Flipkart, Amazon and Paytm Mall are the top contenders in the online market. The Big Billion sale of Flipkart and Great Indian Festival sale of Amazon have given edge to these online shopping platforms over local retailers.

With the huge number of profits through sales, how it will impact the offline retailers?


  • Customer loyalty


When people used to go to shops they find it difficult to choose the product they want. Retailers assist them in that, but now the buyers are highly controlled by the reviews they see on internet.

It snatches the opportunity of interaction with the customers from retailers. This affects in the long term relationship between retailer and buyer.


  • Comparison

People visit to local stores and malls for the product they wish to buy and compare the deals with online e-stores. This impacts the retailer’s revenue heavily.

Most of the time online deals are more eye-catching than the offline ones. So buyer opts for the online store as obvious.



  • Reviews


Customers ask for help to their peers to find and gain information on a specific product. They also visit to a retail store and sometimes end up buying the product if they like it from local market. But with the entry of e-commerce, they do it by themselves with online stores side by side comparison.

They also do in-depth research on product quality and rely hugely on reviews.

This leads to decrease in offline stores sales.



  • Trust factor


Online stores provide statements and stats which builds a strong connection between buyer and seller. An online validation builds trust factor among the buyers which make them comfortable to purchase from the e-store without thinking twice.

A happy customer will recommend the product to its peers which will work automatically in the favor of online e-store.



  • Final words


It is not completely true that e-commerce has affected the retail industry. While it definitely affected the small retailers, but it also gives boost to major brands businesses.

The philosophy of touching and seeing the product in person before buying ensured consistent business for clothes, jewels, vegetables etc businesses.

Most of the buyers still prefer to confirm the product physically before they proceed to purchase it.  It has been said that although more than 200 million people use the internet in India, only about 32 million buy online.

Options such as placing order over the phone and home-delivery are expected from small time retail stores. The ones which have been able to provide these grow relatively, while others got impacted negatively. 


Source of Article - Search Bank IFSC Code

 


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Joined APSense since, August 6th, 2015, From Delhi, India.

Created on Dec 2nd 2019 07:08. Viewed 364 times.

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