Describe the E-commerce process and the way it impacts the small retail traders | RBI Grade B Phase 1 Preparation - Bank Exams PDF Download

Describe the E-commerce process and the way it impacts the small retail traders

The buying and selling of goods over the internet is known as E-commerce. Almost anything, ranging from electronics, books, jewelry, kitchen stuff etc can be bought online.E-commerce has benefited small enterprises by opening up more affordable and effective distribution channels for their goods and services. Many stores have fewer inventory in their physical locations, but they have more possibilities online since they can experiment with different stock options thanks to a larger consumer base. A little understanding of payment gateways and other related topics makes it quite simple to launch an online business. Websites like Amazon etc have given a platform to many sellers online and made it easy for them to increase their customer base online along with their brick-and-mortar stores.
However, if we see the other side, the impact on some retailers has not been as rosy as they appear. Many retailers have seen a sharp decline in their turnover and profit-margin. To compete with the online discounts etc the retailers are forced to maintain low prices which are hardly able to cover their operational costs leaving a very low scope for profit margins. Many offline stores struggle with window shopping because they need to keep a variety of inventory on hand to look appealing. This is challenging for them because keeping so much inventory may be very expensive. We can conclude that while increasing customer comfort and simplicity of purchasing has undoubtedly benefited consumers, it has not been easy for merchants.