Is E-commerce really taking away the profits of small and big shops?
E-commerce has become the primary choice for many users to purchase their day to day stuff. The point that stands out, is that whether Amazon, Flipkart or other e-commerce giants have really taken over the market and consumed the profit of small and big shops? Not really!! The small and big retailers are still the first choice of many users as end user do not want to take trouble to order and wait for 2-3 days to get their ordered item. No doubt e-commerce has great capacity and have already affected the profits of small and big shops, but still even today, majority of purchasing is being done from the offline market.
Blaming the Online market?
E-commerce have made the business to run in a fast paced environment. Retailers who cannot run at this pace will be the one to shut down first. The payment facility and home delivery facility is really quick and of great quality as well. They have taken away some profit margin from the retailers but they lag a lot when we do the reality check.
Know the ground report!!
The ground report suggest that today only 5.7% people in India prefer to do online shopping. That means other 94.3% people still prefer to buy from the offline market. So e-commerce can be one of the cause of the loss but it can be the only point of concern to the retailers.
What to expect in next five year
It is being said that in India the online market will grow at a very high pace and the percentage of people buying from online market will raise a lot and grow around 21% of total population. This still means that after 5 years 79% people will still prefer offline market so there is long journey left ahead for online market to capture the majority market share. We cannot blame only the online market for the loss. Retailers still can work hard to maintain the market capital share and grown exponentially in the fast paced environment.
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