How does technology affect the shopping industry?

With the continuous rise of technology, it makes our personal lives easier and more convenient. With more people having access to the internet, it is interesting to see that technology has indeed changed our spending habits. Ecommerce companies are slowly starting to transform traditional retail habits.

With smartphones now being universally owned, it makes spending online really convenient, relaxing and stress free. Mobile apps which belong to Ebay, Amazon & Etsey are designed to make online shopping experience as simple as possible. They allow users to search up their most desired product with the swipe of a button within seconds. To add on, this makes product pricing transparent; consumers are able to compare prices of products quickly and easily without being pressured.

Time constraints is also no longer an issue. Ecommerce sites are ‘open’ 24 hours a day, 7 times a week. With just a few minutes, items can be purchased and shipped to the customer’s desired address. This convenience, may increase the risk of customers being urged and spending on products that they do not necessarily need. By using ecommerce sites to sell their products, businesses are also able to reach a much larger customer segment that a few stores could never achieve. Amazon claims that 85 million people visit their site monthly. In addition, “according to an Amazon executive, sellers report an average 50% increase in sales”. Selling online would also reduce variable costs (e.g. rent & storage space). Furthermore, lots of sites offer a review section which allows potential customers to read up on what thoughts, experiences and opinions of the previous customer. In my opinion, this is a really useful way to help a customer decide whether they should go with one product or another.

Amazon has also recently proposed the ‘Amazon Prime Air’ delivery system. Amazon’s UAV (Unmanned Aerial Vehicle) is capable of flying at speeds up to 50mph and carry packages up to 5lb in weight (Around 86% of amazon’s inventory). The drones would use GPS technology to fly to customer’s doorsteps within half an hour of the completed order transaction (depending on distance and weight & size of the package). This new delivery system, if implemented, would change how all Ecommerce sites ship their products and drastically decrease the manpower required to deliver packages to customers, thus reducing Amazon’s costs.

Technology has benefited both society and businesses alike. With many different Ecommerce sites and smartphone apps to choose from, customers are able to purchase anything they want at anytime of the day without visiting a retail store or even leaving the comfort of their homes. With this benefit, Ecommerce businesses are also gaining a larger customer base. Implementing innovative ideas such as Amazon’s new delivery system, Amazon is able to be at the top of the ladder and be known as the leading Ecommerce business which utilizes drone-powered delivery.