What is the impact of e-commerce on retail business models and consumer behavior?
Searched over 200M research papers
Research Analysis by Consensus
Consensus Meter
Introduction
The rise of e-commerce has significantly transformed the retail landscape, impacting both business models and consumer behavior. This shift, driven by advancements in internet technology and digitalization, has led to new patterns in shopping and retail operations, challenging traditional brick-and-mortar stores.
Key Insights
-
Impact on Consumer Spending and Satisfaction:
- Higher customer satisfaction in e-commerce leads to increased consumer spending. E-service quality, e-satisfaction, and e-loyalty are directly related to online spending.
- Factors such as sales promotions, retailer reputation, and user experience positively influence consumer behavior on e-commerce platforms.
-
Transformation of Retail Business Models:
- E-commerce has prompted a reassessment of retail operations and cost structures, with large retailers leveraging internet-enabled advantages to enhance their competitive position.
- The integration of digital and physical retailing is becoming more common, with online retailers establishing physical stores and traditional stores adopting digital technologies.
-
Consumer Behavior and E-commerce:
- E-commerce enhances retail competition and increases consumer surplus, although it may not always improve total social welfare due to inefficiencies in market division.
- Emerging technologies like AI, augmented reality, and big data analytics are shaping consumer behavior and enabling retailers to better predict and target consumer needs .
-
Challenges for Traditional Retail:
- Traditional retailers face challenges such as the need to enhance in-store experiences and reevaluate supply chain and inventory management to compete with e-commerce.
- Physical stores must improve quality and presentation to remain relevant amidst the digital transformation.
-
Economic and Social Implications:
- E-commerce impacts employment patterns, urban development, and environmental sustainability, necessitating adjustments in business strategies and policies .
- Government policies play a crucial role in shaping the e-commerce and traditional retail sectors, addressing issues like taxation, regulatory frameworks, and competition policies.
Conclusion
E-commerce has revolutionized the retail industry, driving changes in consumer behavior and necessitating adaptations in business models. While it offers significant advantages in terms of consumer satisfaction and operational efficiency, it also presents challenges for traditional retail and broader socio-economic implications. The integration of digital and physical retailing, along with the adoption of emerging technologies, will continue to shape the future of the retail landscape.
Sources and full results
Most relevant research papers on this topic
What factors determine e-satisfaction and consumer spending in e-commerce retailing?
E-commerce and the retail process: a review
The impact of e-commerce: It always benefits consumers, but may reduce social welfare
Retail digitalization: Implications for physical stores
E-commerce Revolution: Exploring the Impact of Online Shopping on Traditional Retail
Assessing the Factors Influencing Consumer Behaviour in E-Commerce Platforms
Constituents and Consequences of Online-Shopping in Sustainable E-Business: An Experimental Study of Online-Shopping Malls
LEARNING E-COMMERCE
A Study on Impact of E-Commerce on Consumer Buying Behaviour (With Special Reference to Grocery Products, Consumer of Coimbatore District)
THE IMPACT OF E-COMMERCE ON TRADITIONAL RETAIL: A COMPREHENSIVE ANALYSIS OF ECONOMIC, SOCIAL, AND POLICY DIMENSIONS
Try another search
How much Vitamin D Analogues should I take daily?
How do bees make sure the hive stays warm in winter?
What are the implications of antibiotic use and resistance for individual and public health?
Why do we have to wear helmets when skateboarding?
Why do we have to eat food that is not contaminated with bacteria?
do all babies start out as female