Online Shopping: Successes, Failures, and Market Analysis Report

This report provides a comprehensive analysis of online shopping, examining its increasing impact on the global market and its integration into daily life. It explores the advantages of online shopping, such as convenience, product variety, information availability, and competitive pricing, while also addressing its disadvantages, including the inability to physically inspect products, potential delivery delays, and privacy concerns. The report delves into the political and public perspectives on online shopping, highlighting government support and evolving consumer preferences. Furthermore, it presents successful and unsuccessful e-commerce case studies, such as Amazon and Pets.com, to illustrate the factors that contribute to business success and failure in the online marketplace. The report concludes with a summary of key findings and insights into the future of online shopping.

Running head: ONLINE SHOPPING
Online Shopping
Name of the Student
Name of the University
Author’s Note

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Table of Contents
Introduction......................................................................................................................................3
Impact of online shopping...........................................................................................................3
Advantages of online shopping...................................................................................................4
Disadvantages of the online shopping.........................................................................................6
Successful and unsuccessful stories of ecommerce.....................................................................6
Conclusion.......................................................................................................................................7

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Introduction
The impact of the internet has been increasing in the daily lives of the human being all
over the world. The use of IT has been expanding in all aspects of daily life. The internet has
entered into the shopping process of the market. Various e-commerce companies are targeting
online customers over the internet. Therefore, online shopping has been capturing the market
share at a high seed.
This report discusses about the political and public view on the concept of the inline
shopping. The advantages and disadvantages of the online shopping have been discussed in the
report. This report outlines about success stories and unsuccessful stories of the ecommerce
website in the market.
Impact of online shopping
The online shopping in the UK has been increasing at a rapid speed. The UK has the third
largest e-commerce market in the world. The UK government has been focusing in the
development of the online market in the country. An estimated, online sales of the product has
been 533 billion pounds. The estimated value of online sales in the UK at 60 billion euros in
2016. However, e-commerce has been accounting 19 % share of the total business turnover in
the UK (Al-Debei, Akroush and Ashouri 2015). However, in 2015, 80 % of the UK internet
users are shopping online. Therefore, the online business has been in reading and capturing the
maximum market of the UK (Pappas et al. 2016). The traditional offline shopping has been
becoming obsolete from the market.
The political view on the nine shopping has been positive. The UK government has been
promoting the online business and ecommerce websites in the market. The benefits if the

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ecommerce market has been understood the government. There are various policies and laws are
implemented in the e-commerce business that have helped in providing a better opportunity for
online businesses (Chen, Yan, Fan and Gordon 2015). Most of the political players have been
providing opportunities for the online businesses in the market that have been maintaining the
use of online marketing schemes in the market. The online market has been developing all over
the world as Maximum number if customers are available online.
As per public opinion, online shopping has helped in replacing the boredom of offline
shopping. Most of the customers are preferring home delivery of products, replacing the offline
shopping by going to shops to shops in the market. Due to this, online market of various
companies have been running in profit (Wu et al. 2014). On behalf of the public point of view,
the online shopping has been creating an important place in the market. The use of online
marketing of products and services has been initiated in the market with various business
models. These business models have been helping in maintaining and providing various
opportunities to the businesses (Lian and Yen 2014). The digital media environment in the
market has been supporting the use of social media as the marketing tool for the inline business
organization. These business organization has been targeting the social media platform for
promoting their products and services online.
Advantages of online shopping
Online shopping has been providing various benefits to the customers in the market.
Some if the benefits have been mentioned below:
Convenience: It is one if the biggest benefits of the online shopping for the customers in
the market. Online stores are opened 24 hours in a day. Therefore can order and purchase any

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type of products during any time in a day. This provided a great convenience to the customers in
the market.
Selection: Online shopping provides a lot of varieties of products to the customers. This
helps in providing variety of execution methods for the customers in the market. Therefore, the
selection of same kind of products increased with variety and color and type of material (Hsu,
Chuang and Hsu 2014). Therefore, online shopping is preferred by the customers in the market.
The price of each product has been written along with the product that helps in understanding the
budget of the customers during purchase.
Information: Online shops used to provide total information about the products and
services provided by the company. Product description helps in providing a proper approach to
the purchasing behavior of the customers. Quality products help in maintaining the sales of the
company over the internet.
Price: The price of products in the online stores are less than that of the offline stress in
the market. Online stores do not have to pay rent for any house for store. Therefore, all the
hidden charges in the products have been minimized and neglected by the company (Lissitsa and
Kol 2016). Therefore, the price of the products and services provided by the online shopping
company become less than that of an offline product.
Shipping: Various large ecommerce companies are providing free shipping to the
customers, but some of them are charging the minimum price for the transportation charges. The
home delivery service of products costs extra charges for the transportation of product from the
retailers to the house of customers. However, these charges are minimum that does not affect the

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budget of the customers. Although, customers are also happy with the home delivery of the
products as they does not have to go to anywhere to collect their product from the market.
Disadvantages of the online shopping
Along with the advantages of the online shopping, there are some disadvantages of online
shopping in the market. Some of the limitations of online shopping have been mentioned below:
Hands-on Inspection: Online stores cannot replace the experience of touching the
products and checking the quality. Therefore, this create a big disadvantage of the online
shopping. Customers are not able to touch and check the quality of the product (Dai, Forsythe
and Kwon 2014).
Wait Time: Waiting for the products to deliver to the customer is the waiting time for the
customers. Sometimes due to some complexity, the waiting time for the customers might get
increased and delay. This create chaos in among customers. They became worry as their
products might not come after one week or more than that till purchasing date (Lian and Yen
2014).
Privacy: During online purchase, customer has to providing various personal details
including their address. Therefore, there might be a possibility of misuse of their address. This
create problems for the customers in future purchase.
Successful and unsuccessful stories of ecommerce
There are various successful and unsuccessful stories of the ecommerce websites.
Amazon.com has been the largest online ecommerce company in the world. The company has
been rising in the market in a rapid speed. The business model of the company has been very

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strong and simple that have helped in maintaining a strong approach in the market. The
customer base of the company has been very large in the market (Lian and Yen 2014).
Pets.com was launched in in 1998, which focuses on selling pet accessories. However, it
survived for 9 months only in the market. After that, the shares of the company get sold in the
market as it was running in loss. In 2000, the company officially announced that they were
going to sell their assets, icon and content of the company in the market. Therefore, on 9th
November 2000, Pets.com was closed completely (Lian and Yen 2014).
Conclusion
It can be concluded that the use of the online shopping has been a great approach by the
business organization. There are various benefits of the online shopping in the market that have
been discussed in the report. The disadvantages of the online shopping has been explained in the
report. The case studies of successful and unsuccessful stories of ecommerce business
organization has been provided in the report.

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References
Al-Debei, M.M., Akroush, M.N. and Ashouri, M.I., 2015. Consumer attitudes towards online
shopping: the effects of trust, perceived benefits, and perceived web quality. Internet
Research, 25(5), pp.707-733.
Chen, Y., Yan, X., Fan, W. and Gordon, M., 2015. The joint moderating role of trust propensity
and gender on consumers’ online shopping behavior. Computers in Human Behavior, 43,
pp.272-283.
Dai, B., Forsythe, S. and Kwon, W.S., 2014. The impact of online shopping experience on risk
perceptions and online purchase intentions: Does product category matter?. Journal of
Electronic Commerce Research, 15(1), p.13.
Hsu, M.H., Chuang, L.W. and Hsu, C.S., 2014. Understanding online shopping intention: the
roles of four types of trust and their antecedents. Internet Research, 24(3), pp.332-352.
Lian, J.W. and Yen, D.C., 2014. Online shopping drivers and barriers for older adults: Age and
gender differences. Computers in Human Behavior, 37, pp.133-143.
Lissitsa, S. and Kol, O., 2016. Generation X vs. Generation Y–A decade of online
shopping. Journal of Retailing and Consumer Services, 31, pp.304-312.
Pappas, I.O., Kourouthanassis, P.E., Giannakos, M.N. and Chrissikopoulos, V., 2016. Explaining
online shopping behavior with fsQCA: The role of cognitive and affective perceptions. Journal
of Business Research, 69(2), pp.794-803.

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Wu, L.Y., Chen, K.Y., Chen, P.Y. and Cheng, S.L., 2014. Perceived value, transaction cost, and
repurchase-intention in online shopping: A relational exchange perspective. Journal of Business
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