The Effect Of Online Shopping On The Retail Industry
Shopping is an enduring and popular activity among people from all walks of life. The concept of shopping may have seemed alien to you at one point or another, but it has a deeply profound effect on the way we live our lives. If one needs a particular item, does not hesitate to go to the market and search for it, or if he finds a particular product online that he just can’t resist, he will definitely return to the same shop or website in the future. To a great extent, shopping serves as a major social lubricant, preventing tensions and conflicts that might otherwise result from individual disagreements. If we were to stop shopping for a few moments, we would immediately feel the effects of a new business or status symbol, such as a new cell phone or fashionable watch. In other words, shopping is a great social lubricant.
For the retailer, the popularity and continued existence of shopping online stem mainly from two major forces. The first force is the undeniable fact that the internet facilitates easy comparison of products and prices of different retailers. This fact has spurred the establishment of a variety of websites designed solely to make comparison shopping easier. In fact, many retailers consider the internet as their foremost marketing tool, estimating its influence over up to 80 percent of their total revenue. As a result, retailers regularly update their websites and add new features in order to maintain a competitive edge over their rivals. The second major influence of the internet – Google Shopping -has also made it extremely easy for customers to search for products of interest by browsing through a single website dedicated to providing product information.
By providing product information, websites dedicated to shopping help retailers improve customer satisfaction by helping them identify what customers need and want. This means that they can offer better discounts on their merchandise and thereby boost sales. On a broader level, research has shown that consumers tend to buy things that are related to their environment, such as sports equipment or kitchen gadgets. Online shopping is thus useful for improving the environment and enhancing a retailer’s commitment to environmental responsibility.