E-Business and Retail Sector Transformation

This assignment delves into the transformation of the retail sector due to e-business. It discusses how companies are providing more variety of goods to people, leading to an increase in online sales. The e-commerce market is expected to account for almost 30% of online sales in the retail market by 2022, with estimated sales of $1.3 trillion. The assignment also touches on the importance of refined information provided by the internet to customers, assisting them in making better purchasing decisions.

E Business Application

TABLE OF CONTENTS
EXECUTIVE SUMMARY.............................................................................................................1
INTRODUCTION:..........................................................................................................................1
MAIN BODY ..................................................................................................................................1
CONCLUSION:...............................................................................................................................5
REFERENCES:...............................................................................................................................6

EXECUTIVE SUMMARY
In this report it is shown that how online business has affected the retail sector. What
changes it has created and how the overall retail sector has been transformed. Besides this, it is
shows that how e commerce has changed the consumer behaviour and how expectations of
people are been met by online business. In next section it is shown that how bricks and mortar
concept is still now existing in market. Also, what has motivated people to stick on this concept.
Along with this, the future of retail store and online business is discussed. What changes will be
done to attract people and how retail store can give competition to online business.
INTRODUCTION:
Technology and smartphones have transformed the way of doing business. It has made it
easy for consumers as well as business to operate in different markets at global level. It can be
seen as the future in which there will no physical stores (Fleisher and Bensoussan, 2015) Also,
the rise in E commerce industry has boosted the retailers to get involve in online business. E
commerce has evolved at rapid rat. It has provided access to people to collect more information
about a product. Due to this it has made it easier for them to choose the best one. Also, the
buying behaviour of customer has changed providing them a new experience. This assignment
will discuss the concept of retail store and bricks and mortar model. Also, it will throw some
light on the future of retail market.
MAIN BODY
Concept of E commerce
E commerce is a platform through which people and business are connected to each
other. It is an online way of doing business. Internet has provided a platform through which
products and services can be sold and purchased. The reach of internet made it easy for retain
business to grow and expand their operations worldwide (Troshani and Rao, 2015) This is the
reason why retailers are focused on generating huge revenue from e commerce.
How E commerce has affected consumer behaviour

This is to demonstrate the impact of e-commerce on consumers with a vital concern of
affecting their purchase behaviour and buying patterns. These influences can be comprehended
by assessing both internal and external factors where the extrinsic influences are those that
originates from distinct environmental situations with certain intrinsic factors arising from
customer’s mind-set. This proves a vital number of factors that directly influences the
consumer’s behaviour in terms of impacting upon their purchasing behaviour (Buil, Catalán and
Martínez, 2016). Basically, the external factors are mainly divided into distinct factors namely
demographics, technology, socio- economic, reference groups, culture and sub cultural aspects,
along with marketing. However, the internal influences involve attitude, perception, self-image,
learning and motivation, etc. Likewise, it has been found that the customers at the time of
shopping are mostly influenced by functional and non-functional aspects with a vital difference
among both. It is where the functional intentions involve the consideration of time, the place of
shopping as well as the requirement to buy a certain product or service.
It could refer to one stop shopping with an intent of saving time, whereas, the ecological
aspects involve free space of parking with availability of goods that can be purchased at lower
costs with another alternative of choosing from a wide range of products. However, the non-
functional inspirations include socio- cultural values like the brand name as well as the image of
the store, etc., (Ahrens and Zaščerinska, 2014). All aforesaid aspects are mainly related to the
traditional means of shopping which is mostly about buying the needs. Apart from this, it
involves the procedures of marketing where the undertaken measures together impact upon the
consumers and their behaviour. This is specially in regard to the adopted methods of advertising
and promotion that directly attract the customers by together persuading them to buy the things
that are not required but fascinated them to a great extent and they thus intended it to purchase at
the end.
It is presently in context to the impact of e-commerce on consumer behaviour that
involves 3 major aspects of internet shopping, convenience as well as technology. Herein, the 1st
2 factors largely interrelates with each other where internet shopping is apparent to offer
convenience along with interactive services. It is where the internet shopping malls are also

getting popular with adoption of virtual reality as well as 3D techniques. This is usually being
done to enhance the presentation of goods and services (Rodrigues, Oliveira and Costa, 2016).
Convince being another significant aspect has seen a noticeable presence in the trends of e-
commerce where the customers can easily refer buying products at their own comfort zone. It is
also on considering yet another associated fact where online shopping provides an opportunity of
shopping 24/7 from any corner of the globe. This way the customers are together able to save
their time as well as money with no need of transporting from one place to another to physically
visit the stores.
Apart from this, on considering the aspect of technology, it is together known to benefit
the firms to attain a contending position in the market. This is mainly due to the emergence of
newer set of technologies that are continually emerging in the market with a necessity for the
organisations to adopt the same. This gives them an opportunity to develop themselves in the
market by adopting certain progressive measures to combat the state of competition (Martins,
Rindova and Greenbaum, 2015). Internet is also known to provide a refined information of the
products to the customers that in turn assists them to make a better choice or decision of
purchasing. This is for instance on considering the reviews given by the buyers who have already
acquired goods from a similar website and has then given their reactions or acknowledged their
experiences, whether good or bad. It largely assists the buyers to make a relevant choice of
purchasing goods by considering others experiences in the form of reviews, etc.
Brick and mortar concept
It shows that how there is still a presence of physical store in the market. In this most of
the stores belongs to retail sector. Customers still believe on buying through retail stores. This
can be seen as in US almost 90% of sale are still being done through retail stores (Yee-Loong
Chong and Lin, 2014) It is the reason why brick and mortar concept is still working. The main
benefit of using this concept is to give customers a different experience. This concept usually
works in retail sector that is on apparel. Customers prefer to feel and buy those goods with whom
they can touch or feel it. It has resulted in rise in customer satisfaction. On the contrary online
business has provided faster and quicker delivery of products. It has created a new experience to

provide better opportunity for people. There are numerous innovations in products. There has
been a large variety of products available to customers. It has given them smartphones to browse
and purchase items.
How retail has affected bricks and mortar
The bricks and mortar generally refers to physical building or stores that exists in the
market. Due to the rise of e commerce companies the presence of physical store has been
diminished from the market (Wixom and Turetken, 2014) It has created a great impact on their
growth and development. Also, the introduction of e commerce has created fluctuations in
market. It has created gap between physical and online market. Due to this there has been change
in buying behaviour of customers. Moreover, the concept of shopping has transformed. Now
customers are finding new ways or methods for comparing prices of products. This is the reason
why there is change in shift of mindset of people. It has created negative impact on physical
market. It has resulted in decline in stores. Now people prefer to purchase online instead of going
to the market. Also, the availability of products 24 *7 has provided ease to people to buy
anytime, anywhere. Besides this, people are having greater access of information about different
products (Nof, Jeong and Moghaddam, 2015) Furthermore, there has been significant
modification in distribution. Products are delivered to customers on time and within 24 hours.
Retail stores are affected in markets like shopping malls, high streets, etc. but small
business has diminished from that retail market. Now the competition remain between only big
brands and e commerce companies. People have shifted towards purchasing online products.
This is because it is easier and simple way to buy from websites. Apart from this, there exist a
variety of products and categories (Christensen, Raynor and McDonald, 2015) Also, it they can
know the value of product by reading the reviews and feedback of people. Besides this, by
sharing information makes it easy to know about company or brand. It helps in taking effective
decision. Moreover, reduction in sales and profits of retail stores has made it difficult for them to
survive in the market.
Future of retail

The future of retail is very broad. It is said that there will be major transformations in
retail sector. Companies will be providing more variety of goods to people. Apart from this,
products will be delivered in less time (Lu, Wang and Zhang, 2015) Several changes will be
made in displaying of products on websites and how they are available to people. It is said that
every online retail company will provide products at cheapest price. This will result in retaining
them as well as satisfying their needs more effectively. However, in physical retail outlets'
customer will be getting different kind of experience. The entire channel of distribution will be
changed. It will allow people to get their product in 5-6 hours. Besides this, various channels will
be offered to customers. They will choose the best one that is most convenient to them.
Along with this, physical stores will focus more on distribution rather than purchase.
They will try to enter in online channels so that it takes less time to deliver products. Besides
this, both physical and online store will work together (Cherif and Grant, 2014). It will lead to
improving their operations and increasing customer satisfaction. Retail stores have to developed
hundreds of channels worldwide in order to remain survive in the market. This will help in
meeting customer expectations effectively. Traditional retailer needs to develop various
strategies to pick the best site for stores. This can be seen as very year there has been growth
observed in online business. Online business is evolving at rate of 19 % each year. Therefore, in
2022 it will account for almost 30% of online sales in retail market. There will be an estimate
$1.3 trillion e commerce sales (Ahrens and Zaščerinska, 2014).
CONCLUSION:
From this report it is concluded that retail sector has been highly affected by emergence
of online business. Internet made it easy for retain business to grow and expand their operations
worldwide. Bricks and mortar generally refers to physical building or stores that exists in the
market. Due to the rise of e commerce companies the presence of physical store has been
diminished from the market. It is said that there will be major transformations in retail sector.
Companies will be providing more variety of goods to people. Therefore, in 2022 it will account
for almost 30% of online sales in retail market. There will be an estimate $1.3 trillion e

commerce sales. Internet is also known to provide a refined information of the products to the
customers that in turn assists them to make a better choice or decision of purchasing.

REFERENCES:
Books and Journals :
Ahrens, A. and Zaščerinska, J., 2014, August. A framework for selecting sample size in
educational research on E-Business application. In e-Business (ICE-B), 2014 11th
International Conference on (pp. 39-46). IEEE.
Buil, I., Catalán, S. and Martínez, E., 2016. The importance of corporate brand identity in
business management: An application to the UK banking sector. BRQ Business Research
Quarterly, 19(1), pp.3-12.
Cherif, E. and Grant, D., 2014. Analysis of e-business models in real estate. Electronic
Commerce Research, 14(1), pp.25-50.
Christensen, C.M., Raynor, M.E. and McDonald, R., 2015. What is disruptive
innovation. Harvard Business Review, 93(12), pp.44-53.
Fleisher, C.S. and Bensoussan, B.E., 2015. Business and competitive analysis: effective
application of new and classic methods. FT Press.
Lu, J., Wang, W. and Zhang, G., 2015. Recommender system application developments: a
survey. Decision Support Systems, 74, pp.12-32.
Martins, L.L., Rindova, V.P. and Greenbaum, B.E., 2015. Unlocking the hidden value of
concepts: a cognitive approach to business model innovation. Strategic Entrepreneurship
Journal, 9(1), pp.99-117.
Nof, S.Y., Jeong, W. and Moghaddam, M., 2015. Revolutionizing Collaboration through e-
Work, e-Business, and e-Service (Vol. 2). Springer.
Rodrigues, L.F., Oliveira, A. and Costa, C.J., 2016. Playing seriously–How gamification and
social cues influence bank customers to use gamified e-business applications. Computers
in Human Behavior, 63, pp.392-407.