Editing E-commerce (section)

==Impacts==
===Impact on markets and retailers===
[[File:Store_Closing_Flags.jpg|alt=|left|thumb|325x325px|Store closing flags outside a [[Toys "R" Us|Toys R Us]] in Deptford, New Jersey. Despite investments, the chain struggled to win market share in the age of digital commerce. ]]
E-commerce markets are growing at noticeable rates. The online market is expected to grow by 56% in 2015–2020. In 2017, retail e-commerce sales worldwide amounted to 2.3 trillion US dollars and e-retail revenues are projected to grow to 4.891 trillion US dollars in 2021.<ref>{{cite web|last=Sabanoglu|first=Tugba|date=26 March 2021|title=Retail e-commerce sales worldwide from 2014 to 2024|url=https://www.statista.com/statistics/379046/worldwide-retail-e-commerce-sales/|url-status=live|access-date=4 May 2021|website=[[Statista]]|archive-date=22 November 2018|archive-url=https://web.archive.org/web/20181122172313/https://www.statista.com/statistics/379046/worldwide-retail-e-commerce-sales/}}</ref> Traditional markets are only expected 2% growth during the same time. [[Brick and mortar]] retailers are struggling because of online retailer's ability to offer lower prices and higher efficiency. Many larger retailers are able to maintain a presence offline and online by linking physical and online offerings.<ref name="BBC News" />

E-commerce allows customers to overcome geographical barriers and allows them to purchase products anytime and from anywhere. Online and traditional markets have different strategies for conducting business. Traditional retailers offer fewer assortment of products because of shelf space where, online retailers often hold no inventory but send customer orders directly to the manufacturer. The pricing strategies are also different for traditional and online retailers. Traditional retailers base their prices on store traffic and the cost to keep inventory. Online retailers base prices on the speed of delivery.

There are two ways for marketers to conduct business through e-commerce: fully online or online along with a brick and mortar store. Online marketers can offer lower prices, greater product selection, and high efficiency rates. Many customers prefer online markets if the products can be delivered quickly at relatively low price. However, online retailers cannot offer the physical experience that traditional retailers can. It can be difficult to judge the quality of a product without the physical experience, which may cause customers to experience product or seller uncertainty. Another issue regarding the online market is concerns about the security of online transactions. Many customers remain loyal to well-known retailers because of this issue.<ref>{{Cite journal|last1=Dimoka|first1=Angelika|last2=Hong|first2=Yili|last3=Pavlou|first3=Paul A.|date=June 2012|title=On Product Uncertainty in Online Markets: Theory and Evidence|url=https://yilihong.github.io/paper/Product%20Uncertainty%20in%20Online%20Markets_Dimoka_Hong_Pavlou2012.pdf|url-status=dead|journal=[[Management Information Systems Quarterly]]|volume=36|issue=2|pages=395–426|doi=10.2307/41703461|jstor=41703461|archive-url=https://web.archive.org/web/20180106174640/http://yilihong.github.io/paper/Product%20Uncertainty%20in%20Online%20Markets_Dimoka_Hong_Pavlou2012.pdf|archive-date=6 January 2018|access-date=4 May 2021|s2cid=8963257}}</ref>

Security is a primary problem for e-commerce in developed and developing countries. E-commerce security is protecting businesses' websites and customers from unauthorized access, use, alteration, or destruction. The type of threats include: malicious codes, unwanted programs ([[Adware|ad ware]], [[spyware]]), [[phishing]], [[Hacker|hacking]], and [[Vandalism|cyber vandalism]]. E-commerce websites use different tools to avert security threats. These tools include [[Firewall (computing)|firewalls]], [[encryption software]], digital certificates, and passwords.{{Citation needed|date=March 2019}}

===Impact on supply chain management===
{{main|Supply chain management}}

For a long time, companies had been troubled by the gap between the benefits which supply chain technology has and the solutions to deliver those benefits. However, the emergence of e-commerce has provided a more practical and effective way of delivering the benefits of the new supply chain technologies.<ref name="Marincas-2008">{{cite journal|author=Marincas|first=Delia Adriana|date=2008|title=Information system for the supply chain management|url=https://ideas.repec.org/a/aes/amfeco/v10y2008i24p236-253.html|journal=[[The AMFITEATRU ECONOMIC Journal]]|volume=10|issue=24|pages=236–253|access-date=8 May 2015|archive-date=18 May 2015|archive-url=https://web.archive.org/web/20150518065928/https://ideas.repec.org/a/aes/amfeco/v10y2008i24p236-253.html|url-status=live}}</ref>

E-commerce has the capability to integrate all inter-company and intra-company functions, meaning that the three flows (physical flow, financial flow and information flow) of the supply chain could be also affected by e-commerce. The affections on physical flows improved the way of product and inventory movement level for companies. For the information flows, e-commerce optimized the capacity of information processing than companies used to have, and for the financial flows, e-commerce allows companies to have more efficient payment and settlement solutions.<ref name="Marincas-2008" />

In addition, e-commerce has a more sophisticated level of impact on supply chains: Firstly, the performance gap will be eliminated since companies can identify gaps between different levels of supply chains by electronic means of solutions; Secondly, as a result of e-commerce emergence, new capabilities such implementing ERP systems, like [[SAP ERP]], [[Xero (software)|Xero]], or Megaventory, have helped companies to manage operations with customers and suppliers. Yet these new capabilities are still not fully exploited. Thirdly, technology companies would keep investing on new e-commerce software solutions as they are expecting investment return. Fourthly, e-commerce would help to solve many aspects of issues that companies may feel difficult to cope with, such as political barriers or cross-country changes. Finally, e-commerce provides companies a more efficient and effective way to collaborate with each other within the supply chain.<ref name="Marincas-2008" />

=== Impact on employment ===
E-commerce helps create new job opportunities due to information related services, software app and digital products. It also causes job losses. The areas with the greatest predicted job-loss are retail, postal, and travel agencies. The development of e-commerce will create jobs that require highly skilled workers to manage large amounts of information, customer demands, and production processes. In contrast, people with poor technical skills cannot enjoy the wages welfare. On the other hand, because e-commerce requires sufficient stocks that could be delivered to customers in time, the warehouse becomes an important element. Warehouse needs more staff to manage, supervise and organize, thus the condition of warehouse environment will be concerned by employees.<ref name="Terzi-2011">{{Cite journal|last=Terzi|first=Nuray|date=2011|title=The impact of e-commerce on international trade and employment|journal=Procedia - Social and Behavioral Sciences|volume=24|pages=745–753|doi=10.1016/j.sbspro.2011.09.010|doi-access=|hdl=11424/223579|hdl-access=free}}</ref>

=== Impact on customers ===
E-commerce brings [[convenience]] for customers as they do not have to leave home and only need to browse websites online, especially for buying products which are not sold in nearby shops. It could help customers buy a wider range of products and save customers' time. Consumers also gain power through online shopping. They are able to research products and compare prices among retailers. Thanks to the practice of user-generated ratings and reviews from companies like [[Bazaarvoice]], [[Trustpilot]], and [[Yelp]], customers can also see what other people think of a product, and decide before buying if they want to spend money on it.<ref>{{Cite web |date=2022-05-13 |title=Consumers trump marketers in battle for purchasing influence |url=https://www.hometextilestoday.com/brands-amp-marketing/consumers-trump-marketers-in-battle-for-purchasing-influence/ |access-date=2022-11-07 |website=Home Textiles Today |language=en-US |archive-date=7 November 2022 |archive-url=https://web.archive.org/web/20221107222125/https://www.hometextilestoday.com/brands-amp-marketing/consumers-trump-marketers-in-battle-for-purchasing-influence/ |url-status=live }}</ref><ref>{{Cite web |last= |date=2022-05-22 |title=Ecommerce Rating and Review Tools Market – A Comprehensive Study by Key Players |url=https://thedailyvale.com/2022/05/22/ecommerce-rating-and-review-tools-market-a-comprehensive-study-by-key-playerstrustpilot-feefo-kiyoh-bazaarvoice-ekomi-trustspot-reevoo-reziew-yelp-reviews-co-uk-yotpo-powerreview/ |access-date=2022-11-07 |website=The Daily Vale |language=en-US |archive-date=3 November 2022 |archive-url=https://web.archive.org/web/20221103214341/https://thedailyvale.com/2022/05/22/ecommerce-rating-and-review-tools-market-a-comprehensive-study-by-key-playerstrustpilot-feefo-kiyoh-bazaarvoice-ekomi-trustspot-reevoo-reziew-yelp-reviews-co-uk-yotpo-powerreview/ |url-status=live }}</ref> Also, online shopping often provides sales promotion or discounts code, thus it is more price effective for customers. Moreover, e-commerce provides products' detailed information; even the in-store staff cannot offer such detailed explanation. Customers can also review and track the order history online.

E-commerce technologies cut transaction costs by allowing both manufactures and consumers to skip through the intermediaries. This is achieved through by extending the search area best price deals and by group purchase. The success of e-commerce in urban and regional levels depend on how the local firms and consumers have adopted to e-commerce.<ref>{{cite journal|last1=Evans|first1=Richard|date=1 May 2002|title=E-commerce, Competitiveness and Local and Regional Governance in Greater Manchester and Merseyside: A Preliminary Assessment|journal=[[Urban Studies]]|publisher=[[SAGE Publishing]]|volume=39|issue=5–6|pages=947–975|doi=10.1080/00420980220128390|jstor=43084757|bibcode=2002UrbSt..39..947E |s2cid=154155858}}</ref>

However, e-commerce lacks human interaction for customers, especially who prefer face-to-face connection. Customers are also concerned with the security of online transactions and tend to remain loyal to well-known retailers. In recent years, clothing retailers such as [[Tommy Hilfiger]] have started adding Virtual Fit platforms to their e-commerce sites to reduce the risk of customers buying the wrong sized clothes, although these vary greatly in their fit for purpose.<ref>{{Cite journal|last=Januszkiewicz|first=Monika|date=October 2017|title=Online Virtual Fit Is Not Yet Fit For Purpose: An Analysis of Fashion e-Commerce Interfaces|url=https://www.3dbody.tech/cap/papers/2017/17210januszkiewicz.pdf|journal=[[Proceedings of 3DBODY.TECH 2017]]|pages=210–217|doi=10.15221/17.210|isbn=9783033064362|access-date=4 May 2021|archive-date=22 July 2018|archive-url=https://web.archive.org/web/20180722014228/http://www.3dbody.tech/cap/papers/2017/17210januszkiewicz.pdf|url-status=live|doi-access=free}}</ref> When the customer regret the purchase of a product, it involves returning goods and refunding process. This process is inconvenient as customers need to pack and post the goods. If the products are expensive, large or fragile, it refers to safety issues.<ref name="BBC News">{{Cite web|title=Electronic money and electronic commerce|url=https://www.bbc.co.uk/bitesize/guides/zkrgscw/revision/3|url-status=live|access-date=4 May 2021|publisher=[[BBC News]]|archive-date=4 May 2021|archive-url=https://web.archive.org/web/20210504223617/https://www.bbc.co.uk/bitesize/guides/zkrgscw/revision/3}}</ref>

=== Impact on the environment ===
In 2018, E-commerce generated {{convert|1.3|e6ST|abbr=off}} of container [[cardboard]] in North America, an increase from {{convert|1.1|e6ST|abbr=values}}) in 2017. Only 35 percent of North American cardboard manufacturing capacity is from recycled content. The recycling rate in Europe is 80 percent and Asia is 93 percent. Amazon, the largest user of [[Cardboard box|boxes]], has a strategy to cut back on packing material and has reduced packaging material used by 19 percent by weight since 2016. Amazon is requiring retailers to manufacture their product packaging in a way that does not require additional shipping packaging. Amazon also has an 85-person team researching ways to reduce and improve their packaging and shipping materials.<ref>{{cite news|last=DePillis|first=Lynda|date=16 July 2019|title=Amazon's incredible, vanishing cardboard box|work=[[CNN Business]]|url=https://edition.cnn.com/2019/07/16/business/amazon-cardboard-box-prime-day/|url-status=live|access-date=4 May 2021|archive-url=https://web.archive.org/web/20190716130808/https://www.cnn.com/2019/07/16/business/amazon-cardboard-box-prime-day/index.html|archive-date=2019-07-16}}</ref>

Accelerated movement of packages around the world includes accelerated movement of living things, with all [[invasive species|its attendant risks]].<ref name="Newman-2020" /> [[Weed]]s, [[crop pest|pests]], and [[crop disease|disease]]s all sometimes travel in packages of seeds.<ref name="Newman-2020" /> Some of these packages are part of [[brushing (e-commerce)|brushing manipulation]] of e-commerce reviews.<ref name="Newman-2020">{{cite news | access-date=2022-09-17 | year=2020 | last1=Newman | first1=Jesse | last2=Bunge | first2=Jacob | newspaper=[[The Wall Street Journal]] | url=https://www.wsj.com/articles/u-s-postal-service-is-urged-to-stop-delivering-mysterious-seeds-11596555249 | title=U.S. Postal Service Is Urged to Stop Delivering Mysterious Seeds | archive-date=20 September 2022 | archive-url=https://web.archive.org/web/20220920192435/https://www.wsj.com/articles/u-s-postal-service-is-urged-to-stop-delivering-mysterious-seeds-11596555249 | url-status=live }}</ref>

=== Impact on traditional retail ===
E-commerce has been cited as a major force for the failure of major U.S. retailers in a trend frequently referred to as a "retail apocalypse."<ref>{{Cite web|last1=Barrabi|first1=Thomas|last2=Carter|first2=Shawn M.|date=2017-07-14|title=Retail Apocalypse: Pier 1 and the other retailers closing, filing for bankruptcy|url=https://www.foxbusiness.com/retail/features-retail-apocalypse-bankruptcy-stores-closing|url-status=live|access-date=4 May 2021|website=[[Fox Business]]|archive-date=12 August 2019|archive-url=https://web.archive.org/web/20190812203525/https://www.foxbusiness.com/retail/features-retail-apocalypse-bankruptcy-stores-closing}}</ref> The rise of e-commerce outlets like Amazon has made it harder for traditional retailers to attract customers to their stores and forced companies to change their sales strategies. Many companies have turned to sales promotions and increased digital efforts to lure shoppers while shutting down brick-and-mortar locations.<ref>{{Cite web|last=Forte|first=Daniela|date=11 March 2019|title=Store Closures, Failures Continue to Mount as Retailers Seek to Pivot Faster|url=https://multichannelmerchant.com/ecommerce/store-closures-failures-continue-to-mount-as-retailers-seek-to-pivot-faster/|url-status=live|access-date=4 May 2021|website=[[Multichannel Merchant]]|publisher=[[Access Intelligence, LLC]]|archive-date=13 August 2019|archive-url=https://web.archive.org/web/20190813025717/https://multichannelmerchant.com/ecommerce/store-closures-failures-continue-to-mount-as-retailers-seek-to-pivot-faster/}}</ref> The trend has forced some traditional retailers to shutter its brick and mortar operations.<ref>{{cite news|date=1 August 2019|title=The retail apocalypse is shutting down flagship stores|work=[[USA Today]]|url=https://www.usatoday.com/story/money/2019/08/01/retail-flagship-stores-close-rent-online-shopping-skyrockets/1888004001/|access-date=12 August 2019|archive-date=13 August 2019|archive-url=https://web.archive.org/web/20190813033959/https://www.usatoday.com/story/money/2019/08/01/retail-flagship-stores-close-rent-online-shopping-skyrockets/1888004001/|url-status=live}}</ref>