In today’s era, online market is biggest market and this market has even override offline market. Now, Offline market has become traditional market and any business that is not having their digital presence are losing their place from market. It is because online shopping gives opportunity to customers for variety of products which may not be available in case of offline shopping (Chen, Duan, and Zhou, 2017). Online market gives numerous options to customers while in case offline shopping, customers gets limited editions. This report consists of impact of online market on offline market and what are their benefits and disadvantages.
Impact of Online market on Offline market
Online market is a modern market which is growing very fast and every business whether it is big or small has to shift their business from offline retail shops to online e- commerce market. Companies who are making such changes in their business are losing their position from market (Guldi, and Herbst, 2017). There are numerous leading online stores which are not having offline shops or stores but then also they are leading businesses in retail sector i.e. Amazon, Flip kart, Snap deal, Myntra etc. There are numerous causes in which online market are impacting offline market such as promotion of products, customer service, order making process etc.
Through E-Commerce, companies can do promotion of products in interesting manner where customers can easily and fast attract for products. Lots of information related to products is present over online markets which can be costly in case of offline market while providing such information to customers. Online shopping has reduced cost of advertisements and it can be used almost in every business sector for promotion of company’s products. In case of customer service, online market more better customer services as compared to offline because it help in comparing prices of different products and also customers can for searching detailed data about products. Order making procedure is also simple as online orders are frequently booked i.e. hand- to- hand (Li, Shen, and Bart,2017).
Also customized product can be available to customers as per their needs and requirements. Online market have easily made good place in market and also new customers will be attracted. In case of offline markets, there were advertisements done only in one- way in order to attract customers. Now, in case of online market advertisements are done in two- way where customers can go for searching variety of products and also they can go for checking prices of various products and even they ask different questions to online retailers regarding products and services they are offering on e- commerce.
It has been summarized from the above study that online shopping impact offline business adversely. In the present study there are many reason are available for affecting the offline business. Online shopping makes the purchasing hassle-free. Further, populace gets things on their door step, no requirement of going anywhere. In addition, there are many other different effects of online markets on offline markets, i.e. decrease in turnover, profit margins of offline retailers, sales, revenue and more. It has been notice that online retailers have heavily influenced offline shops and most of them in a negative way. Apart from this, the current study also evaluated the advantages and disadvantages of the online retailing. Multiple options: size and color, comfortable easy return policies are the main advantages of the online market. Moreover, complex return policy, lack of tangibility of the products frauds is the drawbacks of the online shopping.
Books and Journals
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Li, H., Shen, Q. and Bart, Y., 2017. Local market characteristics and online-to-offline commerce: an empirical analysis of Groupon. Management Science. 64(4). pp.1860-1878.
Liu, X., Guo, X., Wu, H. and Wu, T., 2016. The impact of individual and organizational reputation on physicians’ appointments online. International Journal of Electronic Commerce. 20(4). pp.551-577.
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Razali, R., and et.al., 2018. The influences of effectiveness, competitive advantages and market accessibility on SME Performance in Malaysia. In MATEC Web of Conferences (Vol. 150, p. 05023). EDP Sciences.
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Wentrup, R., 2016. The online–offline balance: internationalization for Swedish online service providers. Journal of International Entrepreneurship. 14(4). pp.562-594.
Yang, J.G., 2018. The Advantages and Disadvantages of Internet Commerce in China. In Entrepreneurship, Collaboration, and Innovation in the Modern Business Era (pp. 278-290). IGI Global.
Zhao, L. and Zhou, J., 2015. Analysis on the advantages and disadvantages of clothing network marketing. International Journal of Business and social science. 6(4).