Impact of E-Commerce on Sales and Profitability of UK Retail Industry: A Study on Amazon

This article discusses the impact of E-commerce on sales and profitability of organizations operating within UK retail industry, with a study on Amazon. It covers the detailed description of the technology utilized in the chosen concept and how it is used as a business tool. The article also relates to the content and discussion on the nature of the relationship between digital technologies both old & new emerging concepts on venture & management structures as well as practices.

DIGITAL TECHNOLOGY
AND BUSINESS

TABLE OF CONTENTS
TOPIC..............................................................................................................................................3
Reason behind seeing chosen topic to be as important...............................................................3
How topic has developed............................................................................................................3
Detailed description of the technology utilize in chosen concept and what it is used for..........4
Defining technological platforms and software are utilized in overall concept..........................4
Types of business and firm uses the technology.........................................................................4
How is it utilized as a business tool and is this beneficial..........................................................5
Topic relate to content and discussion on nature of relationship between digital technologies
both old & new emerging concepts on venture & management structures as well as practices.5
REFERENCES................................................................................................................................8

TOPIC
“To assess the impact of digital technology (E-Commerce) on sales and profitability of
organizations operating within UK retail industry: A study on Amazon.
Reason behind seeing chosen topic to be as important.
The main reason to deem current topic to be of significant because in the recent time, due
to technological advancement many organizations whether it is small or large has adopted
advanced technologies, which play vital role in growth and success of their ventures (Al-Dwairi,
Harb and Shehabat, 2020). With the help of this concept it is quite easy to obtain in depth
information about the impact of E-commerce as a digital technology on profits margin and sales
of companies that are operating in the United Kingdom retail industry for longer time. The affect
of chosen digital technology is vast, so it is important to understand in effective and
understanding manner.
Not only for above reason, the chosen topic is important because of other as well. For
example, by discussing the impact of E-commerce impact on sales and profitability of firms, it is
easy to generate the awareness about its effectiveness, which is beneficial for those companies
that are unable to determine the same.
How topic has developed
The current topic has formed because of specific issue and that it lack of understanding
about the effectiveness and affect of E-commerce in the market place, which unable many
companies to grow rapidly. In the world of business, there are many firms existed and operated
their ventures into public or private as sub-sector of retail industry. These companies are still
unaware about the impact of E-commerce on sales and profits margin, which is quite important
for them to know. By selecting this topic, it is quite simple to aware individual brand about how
they may obtain benefit of digital technology after using that for longer time. The current
research based on chosen technology, shed light on defining the impact of it on profitability and
success of Amazon that operate under UK retail industry. It falls under the category of leading E-
commerce brands in the world, because organization provide quality products and offer excellent
service by using e-commerce as profitable digital technology.

Detailed description of the technology utilize in chosen concept and what it is used for.
Digital technology is defined as set of electronic tools, resources, devices and systems
that help to increase profitability and performance level of enterprises or ventures. E-commerce
is considered as one of those advanced systems or technologies that provide unpredicted benefits
to many brands (Kumar and Ayodeji, 2020). In the corporate world, it may utilize in term of
buying and selling of quality items and services that put direct impact on customers satisfaction
and organization success in the market. It is powered by the internet, where buyers may access
an online outlet to browse via and place orders in the context of specific product by using their
own electronic devices such as laptop, computer, smart phones and tabs.
E-commerce is utilized for enhancing the satisfactory level of consumers and increasing
profitability, within cost effective method by selling and purchasing goods online. Amazon is
one of those organizations that in the recent time has utilized this digital technology fully and
successfully.
Defining technological platforms and software are utilized in overall concept
Amazon as specific technological platform by using E-commerce software may obtain a
lot of benefits. It can be said that usage of advance technologies contribute to enhance and
improve operational effectiveness (Yalan and Wei, 2021). By using above system, organization
may take pleasure of being a leading multinational retailer in the UK market, where the growth
and success chances are accessible in the bulk. With e-commerce, Amazon in today's
competitive business environment may give tough competition to its rivals in term of
establishing great brand image worldwide by selling branded products online and delivering to
specific location of customers, who are interested to purchase quality and better quantity of
items, exchange of money. There are different types of systems and software's used as e-
commerce such as mobile application of Amazon, its official website, etc. All these elements
may contribute to enhance the performance and productivity of company, even better than its
rivals that are accessible in technological world.
Types of business and firm uses the technology.
In the business world, there are varied organizations and ventures available that are using
e-commerce as advance digital technology and tend to do so, for purpose of increasing
profitability and building wide customer base, among which each individual customer become
happy after obtaining great satisfaction (Rodrigue, 2020). These companies are included in

category of public and private as well. For example, Amazon is one of those international
retailing brands that has utilized business to customers as e-commerce technology, in order to
satisfy millions of people in term of selling branded products which they are unable to purchase
because of unavailability in their nation or market. Organization grown to become an e-
commerce platform with more than 564 million items sold in the UK and across the nation. By
using this technology, firm become the well-known electronic-commerce leader in the world,
which is not that easy to do so for any company as it needed a lot of hard word and strategic
business plans.
How is it utilized as a business tool and is this beneficial
E-commerce is used by Amazon and other companies as business tool, because it saves
their time and money as well to reach at target audience and sell them those items which they
tend to purchase from long time. The usage of chosen technology may provide several benefits to
user as it is effective in term of increasing profitability, operational effectiveness, business
performance and productivity level.
According to, Lestari, MUHDALIHA and Putra, (2020) the best thing about e-commerce
technology is their accessibility, which means it may enable Amazon to be available
internationally and give customers access to purchase and credit any item at all the time, without
thinking too much about how and when they buy it. Just because of using this technology, firm
may save on physical space, personnel and supplies. On the other hand, Azeem, S. and et.al.,
(2020), stated that the usage of e-commerce is beneficial and helpful for the Amazon as it may
assist to build wide loyal customer base, among which each buyer is capable to promote venture
globally via word of mouth as promotional activity.
Topic relate to content and discussion on nature of relationship between digital technologies both
old & new emerging concepts on venture & management structures as well as practices
E-commerce is included in list of those newly emerged digital technologies that put direct
effect in the context of current management practices, structures and business, just like the old
technologies. For example, new and old digital technology like email and mobile calling, are
interrelated with each other one the basis of providing benefits to management in term of
customers satisfaction. But still as compare to old, new emerging technology such as e-
commerce it better, because it just not only satisfy people, but also help to retain them with brand
like Amazon forever (Lin and et,al., 2020). This technology provide firm power to give its

buyers access to chose a product and place order any time, which is not possible with old digital
shopping technology as it require human resource that available at fix time schedule instead of
24hours.
It can be said that digital technologies like e-commerce, mobile calling and email
shopping may influence varied activities of firm in term of providing customers list of available
branded items, which they may prefer to purchase according to wish list, needs and requirements
regarding specific occasion or event (Ocloo and et.al., 2020). For example, it may impact in form
of updating list of products for which management is accountable. By conducting this practice
they may obtain advantage of retaining and building vast base of potential and profitable
customers who are capable to promote venture effectively, without making a demand of specific
amount as they do so after obtaining unpredictable satisfaction.
In earlier period of time, many firms used email as digital technology to sale their
products and attract key customers towards purchasing that, which in return affect business
practices in term of developing strategic plans through which management may retail each
shopper. Just like new digital technologies, it may also support firms to take pleasure of
increasing profits margin that is not easy to do so.
Digital technologies whether it is new or old, may put positive impact on business and
management practices as well as structures (Viu-Roig and Alvarez-Palau, 2020). For instance, it
may provide firm chance to attract new customers and retain them with existing one forever,
which directly or indirectly increase number of products order and due to that management may
enlarge or change their structure, which is quite beneficial for them to do that. It may help to
maximize performance and productivity level of Amazon and also support to build excellent
brand image across the nation where it has established its headquarter. It may influence by
enabling new types of cooperation between organizations and leading to new items & services
offerings.
The best thing about e-commerce as digital technology example, is their advantages that
organization may obtain and attempt to do that. For example, this advance technique of selling
and purchasing products may improve efficiency of business operations and support to increase
its productivity. It may allow Amazon to gain competitive benefit by giving tough competition to
its competitors in the market that are accessible in bulk and attempt to replace brand image,
which is not that easy for them to do so as it needed varied resources.

The main element that interconnect new and old digital technologies is products selling,
which drive the attention of a company towards gaining the attention of new and retaining them
with existing customers base (Escursell, Llorach-Massana and Roncero, 2021). With the help of
email and e-commerce systems, firm may effectively reach to target people and also permit them
to do that in term of choosing and purchasing those brands products that they are unable to buy
because of their accessibility in another nation.
Both technologies are effective, but still e-commerce as newly emerged technology is
better, because it contributes to expand market or venture from domestics level to global
markets, where success and unpredicted business growth chances are available in bulk. It
impacts on management practices in term of driving their attention towards conducting more
activities in the context of business success because with e-commerce technology firm may take
pleasure of decreasing cost of developing processing, retrieving and distributing paper based
info. It may help in several terms for example by reducing transaction price that lead to empower
customers and allow them to build strong relationship with company by becoming loyal
consumers. In today's business market, it is quite challenging for any brand or business to
convert their potential buyers into loyal. But Amazon did that because it utilized e-commerce
digital technology, through which it may give individual person chance to buy what they tend to
do that from long time, without visiting specific outlet and taking one step out of home, office
and other places in better quality as well as in affordable price tag.
With new digital technology, organization may achieve its strategic aim and objectives,
in form of solving customers issues and resolving their queries related to product. Along with
benefits, usage of old and digital new technologies may create some challenges for user in term
of technical issue that is not easy to resolve as it may put negative impact on brand image and
customers mind as well as buying decision-making process. It also leads to decrease online
selling operation efficiency that is not acceptable by any company, whether it is large or small,
public or private.

REFERENCES
Book and Journals.
Al-Dwairi, R., Harb, Y. and Shehabat, I., 2020. The role of social platforms in establishing brand
awareness for B2C e-commerce: empirical study. International Journal of Business
Information Systems. 33(4). pp.488-504.
Azeem, S. and et.al., 2020. Impact of e-commerce investment and enterprise performance based
on customer relationship management. International Journal of Psychosocial
Rehabilitation. 24(9). pp.3998-4006.
Escursell, S., Llorach-Massana, P. and Roncero, M.B., 2021. Sustainability in e-commerce
packaging: A review. Journal of cleaner production. 280. p.124314.
Kumar, V. and Ayodeji, O.G., 2020. E-retail factors for customer activation and retention: An
empirical study from Indian e-commerce customers. Journal of Retailing and Consumer
Services. p.102399.
Lestari, S.D., MUHDALIHA, E. and Putra, A.H.P.K., 2020. E-Commerce Performance Based on
Knowledge Management and Organizational Innovativeness. The Journal of
Distribution Science. 18(2). pp.49-58.
Lin, J. and et,al., 2020. How do agribusinesses thrive through complexity? The pivotal role of e-
commerce capability and business agility. Decision Support Systems. 135. p.113342.
Ocloo, C.E. and et.al., 2020. The Determinant Factors of Business to Business (B2B) E-
Commerce Adoption in Small-and Medium-Sized Manufacturing Enterprises. Journal
of global information technology management. 23(3). pp.191-216.
Rodrigue, J.P., 2020. The distribution network of Amazon and the footprint of freight
digitalization. Journal of transport geography. 88. p.102825.
Viu-Roig, M. and Alvarez-Palau, E.J., 2020. The impact of E-Commerce-related last-mile
logistics on cities: A systematic literature review. Sustainability. 12(16). p.6492.
Yalan, Y. and Wei, T., 2021. Deep Logistic Learning Framework for E-Commerce and Supply
Chain Management Platform. Arabian Journal for Science and Engineering. pp.1-15.