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How e-commerce affects the economy at large

24th April 2015 Print

Electronic commerce has changed the way that many people shop. At the click of a button, you can order anything from a new pair of jeans to a brand new car. According to a survey conducted by global design consultants, Continuum, convenience is the top reason for shoppers to purchase products online. 

So, Who Are The Worst Culprits? 

Surprisingly, the British are the biggest online shoppers in the developed world, with 60% of people choosing to shop online. In the US, the figures are a lot lower: less than 35%. Even so, e-commerce is still a large part of retail culture. But how does this impact the global economy at large?

As e-commerce changes and develops, more and more people are turning to online shopping to make their purchases, even translating into devastating business loses if online retail services fall short of what is expected (as Marks and Spencers discovered last year when it experienced online delivery problems over the Christmas period). The message here is, get it wrong, and expect your bottom line to suffer. Consumers now expect an online service too. 

The Rise Of The Internet Giants

As we’ve seen with e-commerce site,, an online presence can raise a company up to supergiant status, and you don’t even need to pay for tangible shops house your plethora of goods. With vast files of stored data collection, which only e-commerce sites can achieve and catalogue effectively, online retailers can display products it thinks you will like, based on your past purchasing history, and push you into further sales that you wouldn’t usually consider if you were just moseying around your local shopping centre. 

E-commerce sites can and will target shoppers; this tactic helps part even the most responsible of shoppers with their cash, which pours into the pockets of large companies that have perfected online, targeted advertising. When you consider this and the sheer convenience of just hitting a ‘purchase’ button, e-commerce sites actively encourage impulse shopping. 

The Lucrative Internet

And you don’t even need to be an already established company to venture into e-commerce. Increasingly, bloggers and internet entertainers are turning to web hosting sites such as 1&1 to find their fame online and create their own brand, which often leads to merchandising opportunities and book deals. Heather B. Armstrong alone, from the blog, earns no less than $50,000 a month, all from her personal life website. 

With time, it is likely that e-commerce will play an even larger part in global economies, funnelling money through the system by utilising data collection and the seemingly personal relationships that are forged between the blogger community and their readers. Are you ready for the online retail takeover?