Thursday, October 14, 2010

Online businesses killing the retail industry

In the past, anything I order off the internet is usually something that is not available in Quebec or in retail stores. Usually they consist of items like NFL apparel, DVD collections, or computer software. However, the other day, I ordered a first book off Amazon.com, making my first online purchase of something that was available to me in retail. Turns out that even after shipping costs, the total ended up being the same (even less in certain places), than buying it at a retail store.


The main reason I believe people are starting to buy more things online, is convenience. The idea of having a good delivered directly to your house, for relatively the same cost is very appealing. I don’t particularly enjoy going out to shop for certain goods, so being able to make purchases online really appeals to me. I think I would still be uncomfortable buying high involvement products online, like cars or even clothes, but buying smaller items is a lot more convenient online.


Over the years, many people, myself included, were uncomfortable making online purchases, for security reasons. Now with secure web-based payment programs, like PayPal, people have become comfortable making online purchases.


With all the innovations in online retailing, many more industries are beginning to open stores online. Things like grocery stores and restaurants are beginning to do home deliveries, where consumers can make their orders online. We may soon see a much greater movement of companies creating central warehouses and just doing home deliveries. I believe that this is a good thing, but we could be taking lots of jobs a way from people, which may be harmful to society.

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