A recent U.S. Department of Transportation study found that online shopping will be a major contributor to the 45 percent increase in freight traffic on U.S. roads every year by 2040. However, I think the online shopping industry has helped the economy more than it has hurt it. Yes, department stores have failed to make their business successful but that is not from online shopping. In your essay you mentioned that online shopping has allowed people to stay at home and not waste gas. Although, it is easy to walk around the mall and just swipe a card, you will eventually get tired of carrying the bags of all the stores you had gone to as a reminder of how much money you spent. Occupations in maintenance, factory, and even health-related fields are becoming more and more commonly replaced by advanced technology. By the article, its incredibly clear how online shopping is positively impacting the economy. part of the economic and social fabric of their communities. Almost three-quarters of e-commerce companies have only three or four employees. I learned a lot from reading this, like how unemployment rates are growing because of the online shopping. Are you wondering why? I personally always like to shop in store to try clothes on, however I have so many friends who prefer online shopping as it's much more convenient to them (and easy to do during class haha). This topic is very relevant to today's way of transactions. They don't have to take time out of their day to go to the store and rush to what they need/want. I was aware that a lot of the large department stores are already going business as a result of the increasing popularity of online shopping, but I'd be curious to see how this trend might continue in the future. E-commerce and online shopping in India are achieving remarkable and remarkable growth as more and more Internet facilities, high educational standards, lifestyle change, and the country’s economic growth are being used more and more. Its like in eras past with industrialization, producing more markets because of the boost in manufacturing productiveness. The Economic Downside of the Foster Care System, Economic Effects of Increasing the Minimum Wage. Online shopping is something people do constantly but never really think of the effects that it may have on others. In order to verify the e-Commerce’s impact on China's economic growth, we collect data set as in table 1. I personally prefer to shop at a physical location just because of sizing can be different with different brands. Consumers no longer hold the same mentality as before. Although, I never would have thought about it from an economic standpoint. Is the economy growing or is it in trouble? While the online shopping industry has caused some people to lose their jobs, it also has created jobs because when the websites crash, there needs to be people to help bring the website back up. This year Black Friday is on November 29th, 2019. This blog is very interesting in that it shows both the pros and the cons to online shopping, or rather, who it affects and who it does not. It's a bit sad to think that most stores are going out of business since everyone is buying online instead. It was very interesting to see what statistics there are about something as simple as online shopping. As society begins to develop more efficient ways to buy stuff the market it tends to shift over to that. Business to consumer (B2C) trading which involves […] Also the sizes are not always true to fit online and it makes it very difficult if you want to return something that you got. The price which the online shopping sites fix are very low. However, it is true that the selection on online shopping platforms are vast and show more items that aren't in the store. It also means more trash to put out at the curbside. Something I haven't really noticed though is less people working in retail or department stores. For New Yorkers, shopping online means less travel time and, on occasion, lower costs. The aspects of the affect on job market were interesting to learn about and made me more aware to its impact on the economy. I think that your topic is extremely important today and is something that is making a huge impact on the economy. The main cause of this chasm is the emissions produced from the customer driving to the store. Online shopping doesn't give you those little reminders because you are just pushing a button. I wouldn’t expect online shopping to be so involved in the economy. Black Friday shopping isn't as popular as it used to be, but instead Cyber Monday is becoming what most are truly excited about. Not to mention it's far less time consuming, and is much easier and holds less commitment. I knew that online shopping was becoming more common in these days, especially because it's so convenient, but I never imagined just how many jobs are lost because of it. But online shopping comes with its own drawbacks and it is time that we took a closer look at some of them. More importantly it has equally significant impact on the family budget between the old necessities (food, shelter, and clothing) in the new necessities (phone, internet, and apps). I do see how convenient online shopping has become. The COVID-19 pandemic has made those challenges even harsher. Personally, I would prefer going to the store because the item/s are easily accessible already and I don't don't have to wait for shipping. While the advancements in technology will most likely continue to eliminate some of the jobs currently available in our society, my hope would be that people will also continue to realize the advantages of services and products provided by physical, attainable people and places. We use the demand parameter estimates and the marginal costs (obtained from our system of first-order conditions) to assess the impact of the introduction of the online distribution channel on equilibrium prices and sales. There are many shopping sites where they connect to customers only through online shopping which is unfortunate because sometimes it's nice to actually go into a physical store and many times the store can go unnoticed because there isn't a physical store that people can go into. Economic Impact The first thing I thought of when reading your post is Black Friday Shopping and the popularity of that has even moved to online access. Purchasing products or services over the Internet, online shopping has attained immense popularity in recent mainly because people find it convenient and easy to shop from the comfort of their home or office and also eased from the trouble of moving from shop to shop in search of the good of choice. So as retail jobs are being lost more jobs are opening as well, maintaining that unemployed balance. However, I would be interested to see how the increase of online shopping effects online customer service reps that you may talk to when you are having trouble purchasing something. All content and views published on here are solely those of the author of the piece and do not represent the views of Pewaukee High School nor the Pewaukee School District. Its definitely something interesting to think about but time can only tell. I agree with what this post is saying. Though online shopping is boosting the US economy, I think that this increase in online shopping and decrease in shopping in-store has more of a negative affect than a positive affect because of the loss of thousands of job positions and the lack of interaction that continues to increase with people today. Online shopping only applies to the newest generations so the firing of so many employees could still hurt companies right now. As others have said, while I have realized the growth in popularity of online shopping, I never truly thought about how this might be effecting our economy. Retail consumer behavior is changing at unprecedented speed. As the presidential election results demonstrated recently, it depends on who you ask. In a store you are unable to instantly compare prices from multiple different stores at the same time, you can online. I do agree that economic befits will follow as the flow continues whether it is online or in real life retail. Personally, I think that the reason physical stores are starting to fail is because of the cost and different discounts. Thus it has a large economic impact. E-commerce is an example of innovation so that it is an important determinant to raise economic growth. Ecommerce is Good for the Planet and the Economy. This shopping event is used to describe a “Pre-Christmas” day of high commercial sales. Create your own unique website with customizable templates. Despite this, e-retail sales are expected to account for only 4.4 per cent of all retail sales in India in 2019. We have to wonder though will the market ever change after everything goes online? This comment has been removed by the author. The data shows that it is advantageous for companies to have a larger online presence. These companies are not including the cost of manufacturing pollution, trash left over from packaging, and constant air pollution that is harming our public and environmental health. The main reason that I find online shopping so great is because it is so convenient, which you mentioned in your article. The Effects of Immigration on the American Economy. Choosing the right product: Since you are planning to shop online, it would not be possible for you to try on the new blazer or the brand new jeans that you have set your heart on purchasing. Not only does online shopping takes away the point but it also creates less jobs like you said. Specifically, I was surprised to hear the statistics on the people out of a job as a result of this. Therefore, it doesn't surprise me that the department stores are low in staff due to the excessive online shopping. In addition, do you think it's possible for department stores to be able to regain their popularity through new marketing strategies? I don't have to drive all the way out to a store and try clothes on and instead I can just sit on my couch and enjoy online shopping. Unfortunately, this article reminded me of many other similar circumstances. However, I still think there will be a need for in store retail because some people like to try on clothes before they actually make the purchase. As the amazon community continues to grow, economic benefits are sure to grow as well. Many people are shopping online, “National experts say that this year’s Cyber Monday, up to 106 million people are expected to log on and shop…” (Vespa, 2010, paragraph 7). As the biggest consuming market in the world, it has acquired the leading position in the e-commerce market. Eventually, I feel like everything will just be done online and people won't be able to make those strong connections as well. It sounds almost fantasy, but it makes sense that companies as lucrative as Walmart and Target could be bought out by online companies. I personally will miss my late night Meijer runs with my mom one day. Black Friday is one of the most important shopping events around the world and this year, it is going to be bigger and better than ever. Something really sad that I found in your article, is how many physical and in-store jobs have been taken away in only the past few years. In a store you cannot look at thousands of customer reviews. But on the other hand online is very convenient when you don’t have much time to go to a physical location. Demand for electronic commerce techniques and tools. The jobs that are less available from department stores, I believe are just from them becoming bankrupt. Would these stores be more resistant to a buy-out, or would they act like another pawn to grow Amazon and others even more? However what I have not thought about before is the loss of jobs due to online shopping. I do however agree how online shopping is very convenient, because when you don’t feel like going out you can just order what you need online with having the benefit of not needing to waste gas. It makes sense that online shopping has started to dominate the market. Additionally, 36% of men, compared to 28% of women, reported it affecting how much they are spending on experiences (travel, restaurants, entertainment, etc. This will benefit the consumer by saving gas and time but shopping online can sometimes be risky and irritating. I also found this blog post quite interesting because it talks about something that the majority of people do monthly, sometimes even weekly. As a result, their economic well being is lower. It was addressed No.1 in the world and higher than the second USA (US$297 billion) by US$161 billion. I find this sad because we are turning into a world that is so focused on technology and not real life experiences and interaction. Online sales have surged in recent years, but employment by online sellers has not equalled the displacement of workers from physical stores. Ecommerce businesses are fast gaining grounds and changing the way of doing business. I think the reason why online stores are growing so fast as well is because of that last point of how much more variety you get by shopping online. Here is why online shopping is cheaper than shopping at physical stores: Very often the prices of products sold on the web are discounted. However, the most interesting part of this article is the number of jobs being created. I agree with the statements made in this post. Moreover, these types of jobs would likely be distributed a bit more evenly across the country. That is going to further propel online shopping as one of the biggest arguments against online shopping sites was the job losses. Not to mention that some companies are only online, where older generations might not even know about them at all. In 2012, state sales tax revenue from shopping center-inclined sales totaled $137.6 billion, up from the $131.6 billion collected in 2011. It is something I like to do when I am bored and it is a fun way to find clothes without doing anything really. Online shopping website brings good impact to the IT industry. 4.2. Opportunity Cost of Fraud: Is it Worth it? I also enjoy shopping at the physical store rather than online because of those same reasons. Or, will there be something even more efficient and beneficial for the consumers? Online retail sales are set to rise 17% this year to 204 billion dollars (Watershed Publishing, 2010, Paragraph 1). I also see that there are couch potatoes and fuel savers when it comes to shopping online. The blog really highlights how something so convenient can impact our community which I thought was intriguing. In 2014, 33.5% of total retail growth in China was contributed from online saleswith the amount of US$458 billion according to Kantar Retail. And finally, the trend toward online shopping may enable small manufacturers to flourish pretty much anywhere: given the ability to deal directly with customers, they would no longer need to develop distribution networks or build large inventories. The plus with online shopping is that it is at least boosting the overall US economy! I also feel that the growth and involvement of technology in growing generations has also been a key factor in the growth of online shopping. Undoubtedly, online shopping has severely influenced retail stores. It has improved operations through greater use of electronic book-keeping and records management. Impact of the online channel 4.2.1. This study find out nine factors which ecommerce affects economic growth as a result of the I am definitely not surprised that having online shopping boosts the economy, because as I said, it is much more convenient for many people. Customers also have t… However, what I really found interesting is the number of new jobs being created by online stores. Diversion ratios. Shopping online can be risky. The fact that 200,000 people have been unemployed and 80,000 jobs have been eliminated all together was a consequence of online shopping that I never even thought might result. But it also can help the environment because it eliminates some paper usage because the businesses don’t have to pay for magazines and articles trying to get you to buy the products. Apart from snatching away a giant portion of the market from the retailers because of the comfort they provide, they have highly influenced their buyers persona as well. Among the most appreciated advantages of online shopping there is certainly savings, both in terms of time and money. While the online shopping industry has caused some people to lose their jobs, it also has created jobs because when the websites crash, there needs to be people to help bring the website back up. As a person who thoroughly enjoys shopping, especially from the comfort of my own home, it was really surprising to see just how much online retail has affected physical stores. Being the most bustling day in the US and now in the UK as well, Black Friday is not a federal holiday but is a public holiday in some states. Especially with websites like amazon, you can be looking at 10 times more the number of retailers than you would in a physical store. I guess that's just the opportunity cost though, there has to be a give and take in every decision, and people would rather have online shopping than more jobs. As stay-at-home orders and country-wide lockdowns start to be eased, consumer behavior continues to be driven by new personal circumstances, such as changes in discretionary income and spare time, and reconsidered values and priorities. Currently the "last mile" of freight movement is highly inefficient, creating noise and air pollution in neighborhoods. Additionally, I agree that online shopping will continue to increase based on the positive outcome for costumers. Now, instead of rushing Thanksgiving dinners and camping outside for the newest TV's. For example, Amazon is super easy and efficient. We have learned how online businesses can have a positive or a negative effect on the local economy. Online shopping could reach 20% of all retail sales by 2025, so there is further disruption ahead for the sector. To maintain online shopping websites, it needs a lot of programmers, such as, analysis programmer, database administrator, security programmer, web designer and etc. As seen in the picture to the left. According to a recent comScore survey, shoppers made 51 percent of their purchases on the web in 2016 compared with 48 percent in 2015 and 47 percent in 2014. These days are very crucial to Indian economy because of the very last year had various financial waves in whole world regarding the share market as well A collaboration between economics and personal finance classes at Pewaukee High School. In 2013, shopping center-inclined sales were estimated at $2.5 trillion, an increase of 2.6% from the previous year. This post is a very interesting and different one. However, I feel like there is still a major environmental impact that these companies have. The energy used to power a retail outlet also has an impact on the sustainability of physical shopping. 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