The E-commerce industry is one of the most popular business industries in the modern world. Its popularity and importance are getting higher day-by-day due to the increase in technological advancements. The E-commerce industry provides a virtual facility where the goods and services will be displayed for the customers to purchase and complete a transaction through an internet-based platform. Customers won’t have to visit the stores physically, instead, they can simply browse the merchant’s website, select the product they want, complete the transaction through the merchant’s payment gateway and get the product delivered to the doorstep.
With the increase in computers, smartphones, and internet connections, it has been identified that there is a significant increase in e-commerce use in the world. Apart from that, the increasing new generations such as Generation Y, Generation Z, and Generation Alpha who are tech-savvy and prefer to use the internet for purchases, the use of e-commerce platforms for day-to-day purchases have increased tremendously.
The increasing use and availability of e-commerce platforms will create a huge impact on society as well as on the economy.
Since there are e-commerce sites available for almost every product and service, the customers can access whatever product they want quickly and easily. Purchases are no longer required long and time-consuming journeys to the shops. The product prices are mentioned in the e-commerce industry platform itself and the customers are allowed to make choices based on their budget.
Apart from that, the e-commerce industry platforms are allowing customers to access several sites at once and compare the features of the products as well as the prices of the products. The comparison process is easier than walking from one shop to another to check the products physically. This allows the customers to make an informed decision about their purchase and usually creates more customer satisfaction than visiting the shop for purchase.
Customers are given the facility of getting the product delivered to their doorstep or send the product to someone without physically taking the product to that person. Apart from that, the payments are happening through the payment gateway of the merchant. This reduces the risk of carrying physical cash with the customers. They simply can make the payment through their account and transfer funds to the merchant’s account through the designated payment gateway.
As an adverse impact on society, it is identified that the increase of e-commerce transactions can create unsatisfied customers as the product they order can be different from their expectations. Since there is no physical checking of the product prior to purchasing, there can be disappointments about the actual products.
Apart from that, the increasing number of online transactions between customers and merchants are encouraged internet fraudsters to engage in cybercrime activities. Incidents such as fraud, identity theft, and scams are getting increased due to the insecure nature of the internet. This has created the need of being more vigilant when using e-commerce platforms for transactions.
The increasing trends in the e-commerce industry and its impact has created beneficial impacts on the economy as well. The increasing number of small and medium businesses have created more money circulation in the economy. Apart from that, it has provided a solution to the increasing rate of unemployment by generating more entrepreneurial opportunities. This has given the option for many governments to encourage e-commerce business platforms and provide motivation by tax reliefs and by providing necessary capital arrangements.
It is also identified that the increasing number of e-commerce industry businesses can lead to creating downward pressure on the inflation of the economy due to the increasing number of competitors, fewer barriers to entry to the industry, cost-saving methods, and the sales price changing behaviors.