As we got more comfortable in our homes, we got used to having everything on our doorstep. Nevertheless, many now prefer to even finish their shopping in their comfort zone. As a result, the Online business has spread its wings, which in effect narrows the tradition commercial market. However, the extended lockdown has also fueled the burning fire by limiting market access to the general public and restricting movement that has hit the commercial market.
Retail e-commerce sales in the United States are expected to reach $ 599 billion in 2024, up 64% from $ 365 billion in 2019, according to research firm Statista. The United States’ share in Global online retail sales are expected to increase from 10% to 9 percent over the same period. However, in 2018, around 1.8 billion people across the world purchased products online. Hinting at this, the McKinsey Global Institute predicts that e-commerce accounts for 12% of global trade in tangible goods, both between business-to-consumer (B2C or retail) and business-to-business (B2B) sales. . However, some foreign trade policies, infrastructure inconsistencies and the lack of globally applicable rules are hypothetically affecting the growth of e-commerce.
Over time, online trading has given trading a chance. The growing business competition between the online shopping site and the retailers leaves the merchants to grab hold. Declining demand, declining their savings especially during the critical situation, the traditional retailer is struggling to cope with business expenses such as rest, staff salaries, their medical emergency posed a challenge major to traders. It even forced traders to downsize their workforce. Likewise, there are several other reasons that prevent traders from continuing to operate.
Ashok Randhawa, president of the Sarojini Nagar Mini-Market Traders Association, says: “My wife had to be injected with Remdesivir and was on oxygen for days. We ended up spending more 5 lakh buying drugs on the black market; it is the story of several households that were infected and ended up using up their savings on treatment. How will we pay our staff if the stores are not allowed to operate? We want the government to allow us to open stores so that we can earn something. “
Other traders in the markets, including Connaught Place, Lajpat Nagar, South Extension and Sadar Bazar. Paramjeet Singh Pamma, vice president of the Sadar Bazar Traders Association Federation, says they have to pay electricity bills and rent even when their stores are closed.
Sanjeev Madan, president of the Lajpat Nagar Market Association, adds: “The entire supply chain is going for a draw. If someone took out a loan, they would default. Eventually it will stop payments to vendors and staff, which will affect the business of factories. The online market is giving us a hard time and if we are not allowed to operate they will damage us further as we lose our capital and our savings. “
In light of this, Delhi Chief Minister Arvind Kejriwal announced that the nation’s capital had registered around 900 new cases of Covid in just 24 hours and that if new infections continued to decline, more activity could be allowed. in and across the city. Responding to the merchant’s request, he adds: “I can understand their difficulty, but they must be patient and not rush. We also want their markets and stores to open. As the situation gets under control we will open everything up. “
A brighter side of e-commerce
While e-commerce has an impact on merchants, it is also convenient in terms of price, productivity, etc. An amalgamation of technology and marketplace has forced companies to examine and rediscover their supply chain strategies. To stay competitive, companies have explored better coordination and association between supply chain partners to bring out inefficiencies that might survive intra-company transactions. Many of the transactions could be done outside, through electronic marketplaces. The Internet and its applications have also served to improve the process to increase the efficiency of supply chain management.
In addition, ICTs allow firms to recognize the market for the inputs they need for production and significantly reduce the cost of collecting and processing information on prices and input characteristics of different goods and services. In addition, information and communication technologies facilitate the integration and control of remote operations without incurring prohibitive costs. Better ICTs make it possible to set up optimized operations in low-cost national sites and in countries where a comparative advantage is present for the outsourced task. Electronic commerce thus facilitates the efforts of companies to separate and transfer all imaginable activities of the production process to entities outside the company. The empirical evidence available on price is mixed. Some of the early studies found that the prices of goods sold on the Internet were on average higher than their counterparts purchased from traditional retailers. A more recent study, however, found that the prices of books and CDs were on average about 10 percent lower on the Internet compared to traditional retailers in the United States. The demand-side evidence for rate compassion is also mixed, with some work suggesting low price elasticity of demand and others suggesting high price elasticity.
Data from countries where the use of information and communication technologies is widespread suggests substantial improvements in productivity. In an analysis of the contribution of information and communications technologies to economic growth in nine OECD countries, over the past two decades, ICTs have contributed between 0.2 and 0.5 percent per year to economic growth. During the second half of the 1990s, this contribution increased from 0.3% to 0.9% per year. The effects were greatest in the United States, after Australia, Finland and Canada. Another study suggests that the rise of B2B e-commerce will increase the level of GDP by five percent in the long run. In addition, it has been debated that Internet-related technologies could increase the speed of financial transactions, which inflates the question of how interest rates should be set and whether the short end of interest fixing requires to become shorter, that is to say units of time less than one day. However, increasing technology leads to inflation, but makes our daily routine easier, resulting in increased productivity.