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Essay / Research Paper Abstract
An 8 page paper that addresses two specific questions: What impact does e-commerce have on brick-and-mortar stores? What impact does e-commerce have on sales tax revenues for cities and states? Everyone knows that e-commerce sales are still increasing exponentially. Some analysts argue this trend will only get stronger and will eventually force physical stores to close while others argue that e-commerce, at least in terms of the average consumer, will dwindle and die. Neither argument is valid. This essay discusses the effects of e-commerce and how it can be complementary to physical stores, not a substitute. A discussion regarding the reported loss of sales taxes for cities and states presents some interesting data. Bibliography lists 9 sources.
Page Count:
8 pages (~225 words per page)
File: MM12_PGecmtx.rtf
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Unformatted sample text from the term paper:
that Online shopping increased by 60 percent during the holiday season of 2000 over the same season in 1999 (Davis, 2001; Biggs, 2001). These studies suggest that e-commerce will definitely
hurt the brick-and-mortar businesses and will continue to do so at an even greater rate as time goes on. But, according to some analysts, this does not have to happen.
Argimon, for example, believes there will be a complementary relationship between the two (2000). Of course, Argimon was suggesting that the traditional stores develop a Web site where consumers
can purchase from them (2000). Argimon commented: "It is tempting to assume that Internet retailers will capture more and more of the overall market within the next few years, but
retailers using the new technologies creatively rather than competing against them will remain very successful" (2000, p. NA). Argimon offers as Wal-Mart as an example of the complementary relationship between
Internet and traditional stores; Wal-Mart has made the transition and offers consumers both options for shopping (Argimon, 2000). And, Davis reported that the e-sales for ToysRUs grew from $39
million in 1999 to $124 million in 2000 (2001). Dembeck did not necessarily agree. Dembeck believed that the growth of Internet sales would result in decreased sales at
traditional brick-and-mortar stores (1999). That seems to make logical sense if the traditional store does not also have an Internet site where consumers can make purchases. There is no
consensus regarding what effect e-commerce will eventually have on traditional retail stores. For instance, Whitney stated: "Conventional wisdom on the subject suggests that electronic retailing or - "e-tailing" - wont
be an immediate threat to physical shopping, at least not for a long time. But theres still no consensus on exactly what role e-tailing will play in the retail realm"
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