E-commerce impact on retailers and markets
There is no denying that e-commerce has had some impact on retailers and markets. In the modern-era, people view e-commerce as the new thing on the global market. The online market is expected to grow at a rate of 56% between the second half of the second decade. This makes the e-commerce sector an industry disrupter. Brick and mortar retailers depend a lot on location. This is not the case with e-commerce real estate. Before the advent of the internet, Walmart was the major retail player. This dominance is being challenged by players in the e-commerce sector. Amazon already has a market capitalization which is two times that of Walmart. A lot of Amazon sceptics have warned that Amazon is part of the second tech bubble. This tech bubble is soon going to burst.
E-commerce impact on small businesses
E-commerce has had both a negative and positive impact on small businesses. Small businesses now have a chance to compete. This is due to the fact that large companies such as Walmart are well established and they have a capital advantage over smaller retailers. However, with the rise of e-commerce, smaller companies now have been given a chance against large retailers. As a small business owner, you do not have the capital needed to buy an awesome location. E-commerce impact on small businesses also has changed the way business is done. Subscription-based business has also been on the rise. The reason being due to the many subscription digital e-commerce businesses.
E-commerce impact on brick and mortar retailers
E-commerce impact on brick and mortar retailers is also profound. This means that retail companies no longer have the added advantage of location. Location is the main factor that has driven brick and mortar retail business for ages.