E-commerce has grown dramatically in the recent past. The transition from traditional physical marketplaces to technology-enabled marketplaces has important economic and social implications. Let us explore the same.
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Article The social function of trust and implications for E-commerce
Three important aspects I will state
1. Increase in turnover or sales across industries due to easy shopping and home delivery at competitive prices. This has favorable impacts on GDP
2.The local shop keepers no more can fleece consumers as internet provides them existing prices
3.There is huge increase in logistics industry and employment but at the same time wastage of packing material and disposal problem. Specially bubble packs and polyurethane boards are harmful to environment
4.The local shops and their product lines have undergone big change as many shops are closing down while many are flourishing. There are many areas where online shopping does not suit. Hence it is leading to restructuring of small retailers and their business. Any new palace is built on relics of small jhopdi and jhuggis
The implications of E-commerce from economic and social point of view cannot be over emphasised because, the transformation has been quite significant. It has a global impact in many respects. Below are some of the spin-offs.
1) Return on invest (ROI)
2) Optimal use of resources
3) Integration and collaboration with other service providers
4) An enormous opportunity for consumers too step away from their respective comfort zone “Old traditional” shopping attitude. This transformation has brought about people beginning to shop more comfortably online.
5) Improve products and services due to competition within the market and lastly,
6) Improved logistics (e.g. supply chain processes…).
On the other hand, most businesses now require less human capital to support their customers or end users even at the supermarkets, customers at the shopping malls due to automation etc.
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