Why e-commerce will not win the war against traditional retailers
Both e-commerce and traditional retailing have got advantages and disadvantages. The advantage of e-commerce is based on the electronic system and the advantages of traditional retailing are based on physical contact. To begin the reason why e-commerce will not win the war against traditional retailing let us first define what e-commerce and traditional retailing is.
E-commerce as the word implies is the buying and selling of goods and services on the internet. The “e” in e-commerce stands for electronic. This means that all transactions occur electronically. The idea of e-commerce was to offer customers a broad range of products in one place. On the other hand traditional retailing is sometimes called brick and mortar retailing. This is the everyday shopping method that most people use. It is simply the buying and selling of products physically. If you think of traditional retailers you should think of supermarkets and Marts. Most companies now possess the ability to sell products online. Even if Adidas has a great location to sell the products they still rely on online sales for some of their revenue. Walmart generated 17 billion dollars last year of online revenue.
Why e-commerce will not win
The main factor why e-commerce will not win and will continue being a niche market is due to the fact that traditional retailers have the location. Traditional retailers have the added advantage of being located in an awesome location that people like visiting every time.
Why e-commerce will not win according to statistics
The statistics are against the e-commerce sector. The e-commerce sector only accounts for 3% of all global sales. This puts the e-commerce sector at a great disadvantage against the larger and better established traditional retailers. E-commerce only accounts for less than 500 billion of all sales.