The Positive Impact Of E-Commerce

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E-commerce is good for the economy CHEE JIA LE, GLENDA-ASSIGNMENT 2 Nowadays, electronic commerce (E-commerce) is rapidly progressing and it is considered to be one of the most perspective fields of the development of business economy. It is extremely essential to the prosperity of financial transactions in every business. Despites these benefits, some people believe that e-commerce can have negative effects on both retailers and consumers. This essay will outline that E-commerce has a positive impact on the economic growth at country level, since it promotes sales which in turn improves company performance and ultimately increasing economic growth. Firstly, costs of inventories is reduced. Statistics have shown that the implementation of B2B e-commerce platforms reduced inventory costs by 40% for small and medium-sized enterprises (Dave,…show more content…
The Census Bureau monthly retail sales reports shows that online transactions sales increased by 11.9% while physical stores saw a 6.4% cut in sales (Soergel, 2016). While there is no doubt that digital technology is indeed taking share of overall retail sales, there is still a place for brick and mortar retailers. In fact, e-commerce is actually enhancing the businesses through the combination of online and offline channels. For instance, during the 2016 November Singles Day sales event, online stocks had been sold out in Uniqlo Tmall store. However, customers could still purchase the items in its physical stores with the same discount, thus saving logistics expenses and shortening customer’s waiting time (Deng, 2017). A 2015 TimeTrade survey revealed that 85% of the customers still prefer visiting the store before buying the product. This emphasises that e-commerce is not only an online affair. Both online and offline operations are effective in creating customer awareness and demand (Radial - Omnichannel Technology & Operations,
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