HOW E-COMMERCE IS CHANGING TRADITIONAL MARKETS

Abstract

E-Commerce is rapidly changing the global economy and reshaping the way businesses engage with consumers, of which there are businesses large and small, such as Amazon and Alibaba and local businesses who engage via social media (such as Instagram-based shops). Interestingly this research examines how traditional businesses (such as neighborhood store's and physical shops are been impacted with the transition into e-commerce markets and the place they occupy in the global economy, particularly in developing and transitional economy's). E-commerce provides lower cost, greater market access and opportunity, better convenience the simultaneous reality of higher competition, retail job loss and a digital divide has emerged. This paper explores the process of traditional businesses adaption towards (hybrid) models of e-commerce, utilizing social media in sales, and applying digital tools and strategies to further their business scope. In essence this paper attempts to argue that with the right approach e-commerce could be an opportunity to innovate, modernize and provide inclusive growth rather than simply disrupting traditional markets.