A few decades ago, the idea of people being able to compare the products of a whole range of suppliers to find the best deals in a matter of moments would scarcely have been believable. The growth of online shopping in recent years, however, has empowered many different sectors to not only provide customers with a more competitive selection of goods and services but also to enhance technology at an increased rate to stay relevant in the industry.
What online shopping has done for consumers:
The defining change online shopping has brought about is accessibility and convenience. As an example, shoppers today are now able to source their grocery from their favoured supermarket brands online and have it all delivered effortlessly or be able to source hard-to-find tools and equipment for their projects such as a chainsaw with much more ease. This has all resulted in massive time saving for people from all walks of life and improved economic productivity. But it has to be noted, however, that this huge leap forward has caused some downsides to some at the same time as it has helped others.
The Amazon effect:
The term “Amazon effect” describes the influence that the internet, eCommerce and or digital marketplace has had on the conventional brick-and-mortar business model as a result of changes in consumer behaviour, expectations, and the level of competition in the sector. It has harmed many traditional businesses who are forced to compete with the internet marketplace with only a physical location as online shopping and eCommerce gain popularity.
Since the company’s founding in 1994, the Amazon effect has significantly altered the way we shop. This phrase refers to the impact that traditional modes of trade, like brick-and-mortar retail, have suffered as a result of the entire digital economy. For example, customers may now shop with nearly no friction and almost immediate results (same-day delivery option on certain items).
The Amazon influence has, nevertheless, also permeated more conventional venues. Whether they are in front of their computers or in a mall, customers today want the same experience.
How the internet has influenced buying decisions:
Just as importantly, the increased selection of goods and suppliers has allowed customers to be selective and prioritise factors such as work efficiency, their own health and well-being, and workplace conditions. Online forums and feedback pages, such as Trustpilot, create trusted communities among shoppers, where they can compare their reviews of various products and services with one another, and thereby make informed decisions about what they are purchasing for their specific projects. This breadth of connectivity was absent in the trade, now it is at the fingertips of all who care to use it.
The influence credit has had on online shopping:
It must be said that however much growth the E-commerce sector has had in the past decade, it wouldn’t have been as pronounced without the help of available credit from high-street banks in the form of personal loans, credit cards and equity release mortgage. These different financial products have helped millions make online payments ahead of time at often relatively low-interest rates, which makes this an attractive option for consumers looking to indulge in online clothes shopping. This can also be said about cars that are purchased on a PCP or lease deal as well as gadgets such as mobile phones.
This trend is widely predicted to slow down in the coming months and years due to rising interest rates. Shopping online in this manner should however remain the way forward, for most established businesses, due to the level of convenience this offers shoppers and the overall high approval rating from consumers all around the world.
