E-Commerce and the Economy / By: Mayte Lema

Online shopping has become a prevailing way of shopping due to improvements in technology. With a click of a button, purchasing items has never been easier. Companies like Amazon, Shein, and many others have profited from technology and have become multi-million dollar companies in just a few years. Although it has had an immense impact, online shopping hasn’t completely run physical store owners out of business..  Over the years, companies with physical stores have adapted and implemented an online presence, which has led to more profit. This cannot be said for every physical store.   “ Establishment of a fulfillment center is associated with reduced employment growth in retail of 2.9 percent within the same county, a loss of about 938 jobs per county per quarter ”  (Page, 2022).  For physical store owners, this can become an increasing concern. Daky Lema, a business owner of Native Spirit, states,  “I’ve seen that many stores have closed down because of this. (Consumers) can buy anything they want at home. Small business owners like myself cannot afford to hire someone to create a website nor can I work from home delivering to everyone. I have to wait until they come to me, forcing my sales to go down.” As easy as it is for people to shop online, local business owners suffer from the ease of purchasing any products, at any time, whenever someone wants.  On the other hand, people who have decided to create online stores have benefitted from this switch substantially.  “ By 2027, 23% of retail purchases are expected to take place online ” (Snyder, 2024) . This increase in retail purchases encourages sellers to gradually move towards websites and leave the physical stores behind. Yamile Muñoz, an online business owner, states, “People who have online stores can reach many more people. (Consumers) can keep buying from stores from their home. I can work 24/7 without having the hassle of working after hours or depending on one person’s purchase. Especially since everything is becoming more online, I can (reach) a larger group of people.” This online shopping phenomenon has its pros and cons; however, with an equal balance, it can be beneficial for both online and physical stores. Daky Lema, Business Owner Yamile Mu ñoz, Online Business Owner Sources: 1. https://www.nber.org/digest/202208/effect-e-commerce-expansion-local-retail 2. https://www.forbes.com/advisor/business/ecommerce-statistics/