Changing the Business Landscape through E-Commerce
Amazon homepage; a website that is changing the online consumer market
People around the world, including myself and the author of this article from Forbes, agree that E-Commerce is changing the business landscape as we know it. Consumers around the world are really starting to buy into (pun intended) digital shopping. In fact, as that article mentions, E-Commerce is projected to grow 16% every year, and therefore will be doubled in only five years. If businesses haven't caught on to this trend by now, they are probably too late to the game.
In 2017, a typical consumer orders things through Amazon Prime and receives it within two days. They also purchase that sweater they've seen in the store window downtown from Express.com and find it sitting on their front porch four days later. They're even using their mobile devices to book an apartment on AirBnB, make dinner reservations on OpenTable, and get their ingredients delivered right to their door from Blue Apron. This has changed the way businesses sell their products and promote their products. It has even given rise to entirely new business models.
Alterations of Existing Businesses
Wal-Mart: Wal-Mart, although the king of brick-and-mortar mass retail, struggles with their E-Commerce business. This is simply because Amazon beats them; they have cheap prices, larger variety, and free two-day shipping with a Prime Membership. E-Commerce was never a part of the original business model for Wal-Mart, but they had to adapt and keep up with the competition. Although they are still struggling with this side of their business, they are slowly improving and trying to stay afloat, while the consumer's desire for online shopping is increasing.
Rise of New Business Models
Blue Apron: Blue Apron is a company that created its entire business model on E-Commerce. The food delivery service allows you to purchase a subscription on their online store, sign up to have fresh ingredients delivered to your door with recipes attached, and cook all of your meals without ever having to visit the grocery store. The crazy part about this increasingly successful business model? There are no brick-and-mortar stores! The entirety of the business takes place on your very own computer screen. This certainly would have never been possible without the rise of E-Commerce.
AirBnB: AirBnB is another entirely online service that is taking the world by storm. The company serves as a broker by connecting short-term lodgers with landlords and home owners willing to rent out their homes for short periods of time. How is this done? Well, a consumer looking to vacation in Barcelona simply types their destination onto the website's homepage, they look around at different options including houses, apartments, homestays or hostels, and then they apply to whichever one appeals to them best! The owner of the property will then click accept, and contact the customer to arrange for their arrival. It really is as easy as that. And again--no physical communication or contact. It is all done online! The Internet really is a wonderful place.
No Going Back
It is clear at this point that E-Commerce is here to stay, and it will continue to grow and evolve as consumer demands grow stronger for convenient and fast shopping. Although this creates a difficult fight for incumbent businesses like Wal-Mart, it does give opportunity for new market entrants like Blue Apron and AirBnB. The future is unclear as of now, but we can be sure that we will find new exciting ways of purchasing and interacting on the Internet in the near future!
