In the last few years, the world witnessed a boom in e-commerce (electronic commerce), as companies like Amazon and eBay made tremendous inroads into the retail sector. While some saw it as a threat to brick-and-mortar stores, others saw it as an opportunity to expand their businesses. Many consumers now shop online and are happy with their choices. In fact, brick-and-mortar retailers now have to compete with online sellers and must try harder to retain their customers.
To understand how Amazon’s rise affected the retail industry, it’s important to know how the company’s entry into the market created a new avenue for competitors to emerge. When Jeff Bezos founded Amazon.com in 1997, he took on all the risks himself. Initially, his intention was to sell books online through a catalog system. However, when people started ordering books through his website, he decided to expand his business by selling other products online as well. This allowed him to compete directly with other e-commerce sites such as eBay and Overstock. In addition, it also gave him a foothold in both the retail and e-commerce sectors.
Along with expanding into other areas, consumers have also become increasingly comfortable making purchases online. The rise of online shopping has made it easier for them to save money. For example, if you want to buy something specific, you no longer have to go to a physical store and get lost in the aisles looking for what you want. Instead, you can find what you need and purchase it immediately at the comfort of your home computer. One of the best examples of this trend is Amazon’s success; its growth has been exponential since founder Jeff Bezos introduced his website 15 years ago. According to Forbes magazine, Amazon brought in $177 billion (nearly 1 trillion yuan) in revenue worldwide during 2017 alone- more than any other retail or e-commerce enterprise that year.
While there are still lots of challenges that brick-and-mortar retailers face, consumers have started accepting these changes as they shop online at sites like Amazon. For example, some consumers have started accusing online sellers of undermining traditional retailers by selling products at lower prices and offering free shipping. Some have even started calling this ‘the Amazon effect.’ Even though most sellers on Amazon operate within legal guidelines (according to some reports), there have been instances where sellers on other websites have engaged in unethical behavior that threatens consumer trust. Although e-commerce is booming, consumers must still be vigilant when they shop online at any site.
Clearly, creating a new avenue for competition has had an effect on both consumers and retailers alike. The rise of e-commerce has changed how people shop every day- but it hasn’t hurt brick-and-mortar retailers either. Instead of competing directly with each other, traditional retailers and e-commerce sites now work together to promote brand awareness and increase sales figures. Furthermore, consumers no longer need to sacrifice quality for competitive prices; they can now have both at bargain basement prices via online shopping sites like Amazon!
Author: Brawnywriter
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