Electronic Commerce Effect on Brick and Mortar
Before the Internet nearly all transactions were done at local stores also known as Brick and Mortar. A Brick and Mortar is “Relating to business with physical facilities and structures as distinguish from an Internet business (Kurian). Buying from local businesses allowed money spent to continue circulating through the local economy. It is the responsibility of the seller to change with the market to remain relevant. For example, “Progress is impossible without change, and those who cannot change their minds cannot change anything” (Simon). The creation of online shipping, the pros and cons, and the effect it has on brick and mortar.
The first computer to come online was in 1969 by the ARPA …show more content…
Besides the obvious fact that when a customer decides not to buy from a local store, that store loses money every single transaction. A brick and mortar will attempt to lower the prices on products as low as possible attempting to match online prices, making it harder to stay in business. Exclusive online businesses have a lower overhead, because they do not have to maintain a physical business. Small business has the option to turn to selling goods online to stay current but that does not always work “Gentzkow (2007) documents that the introduction of a digital version of the Washington Post reduced the number of readers of the print edition”. An example of what will happen to a business if it fails to evolve with the times is Blockbuster. Netflix the first nail in the coffin for Blockbuster offered to sell the company to Blockbuster for a quarter of Blockbusters worth, but decline. More online retails began to take over all aspects of what Blockbuster offered. Blockbuster failed to realize that there is a better way to supply their product. Never the less, electronic commerce does not eliminate the need for every Brick and …show more content…
Brick and mortar that are successful at integrating online selling are called Click and Mortar. An example is Barnes & Noble. Taking advantage of online sales before other retailers caused Barns & Noble to control the biggest physical book store and be at the top of sales of digital media. A business that has previously established a successful business off line, has an established level of trust. That level of credibly is hard to establish for an exclusively online retailer.
Ultimately, the increase in internet speed and decreased prices of computers, combined with the privacy of shopping from home electronic commerce is going to continue to grow. As well as the introduction of electronic commerce caused Brick and Mortar stores to develop successful internet sales practices, or remain the same and risk the chances of becoming obsolete. It is ultimately the choice of a business owner to analyze the market and decided if the transition will beneficial or
Before the Internet nearly all transactions were done at local stores also known as Brick and Mortar. A Brick and Mortar is “Relating to business with physical facilities and structures as distinguish from an Internet business (Kurian). Buying from local businesses allowed money spent to continue circulating through the local economy. It is the responsibility of the seller to change with the market to remain relevant. For example, “Progress is impossible without change, and those who cannot change their minds cannot change anything” (Simon). The creation of online shipping, the pros and cons, and the effect it has on brick and mortar.
The first computer to come online was in 1969 by the ARPA …show more content…
Besides the obvious fact that when a customer decides not to buy from a local store, that store loses money every single transaction. A brick and mortar will attempt to lower the prices on products as low as possible attempting to match online prices, making it harder to stay in business. Exclusive online businesses have a lower overhead, because they do not have to maintain a physical business. Small business has the option to turn to selling goods online to stay current but that does not always work “Gentzkow (2007) documents that the introduction of a digital version of the Washington Post reduced the number of readers of the print edition”. An example of what will happen to a business if it fails to evolve with the times is Blockbuster. Netflix the first nail in the coffin for Blockbuster offered to sell the company to Blockbuster for a quarter of Blockbusters worth, but decline. More online retails began to take over all aspects of what Blockbuster offered. Blockbuster failed to realize that there is a better way to supply their product. Never the less, electronic commerce does not eliminate the need for every Brick and …show more content…
Brick and mortar that are successful at integrating online selling are called Click and Mortar. An example is Barnes & Noble. Taking advantage of online sales before other retailers caused Barns & Noble to control the biggest physical book store and be at the top of sales of digital media. A business that has previously established a successful business off line, has an established level of trust. That level of credibly is hard to establish for an exclusively online retailer.
Ultimately, the increase in internet speed and decreased prices of computers, combined with the privacy of shopping from home electronic commerce is going to continue to grow. As well as the introduction of electronic commerce caused Brick and Mortar stores to develop successful internet sales practices, or remain the same and risk the chances of becoming obsolete. It is ultimately the choice of a business owner to analyze the market and decided if the transition will beneficial or