Impact of Ecommerce on Sales in The Retailer Industry

The Need for E-Commerce in Retail Industry

With the advent of the internet, retail businesses have started inclining towards e-commerce. The rising consumer demands and increasing competition has pushed the retail industry forward. Now, the retail sectors are dedicated to abolishing their brick and mortar stores to build their presence online (Power, 2013). Hence, the concept of e-commerce has risen in the cyberspace. There is a massive impact of e-commerce on sales in the retail industry (Tkacz, 2009). The dissertation is focused on analyzing Amazon UK and examining the effects of e-commerce on sales in the retail sector.

Research Objectives

The research objectives of the dissertation are as under:

1. To examine the impact of e-commerce on sales in the retail industry regarding Amazon UK.
2. To explore the ways adopted by Amazon UK to increase the sales of the retailer.
3. To understand the process adopted by Amazon UK for customer satisfaction.
4. To provide recommendations to improve the performance of the e-commerce website.

Hypothetical Prospects of E-Commerce on Sales

 H0: E-commerce is one of the widely accepted business media today.

 H1: E-commerce is among the most trusted source to shop today.

 H2: Lightning speed delivery service provided by e-commerce.

 H3: Amazon is one of the leading portals across the world.

Literature Review of the Impact of E-Commerce in the Retail Industry

Internet technology has highly evolved recently due to which retailers across the world are inclining more towards launching their brands online (Aldrich, 2012). The current e-commerce market is moving towards a complete revolution. Moreover, it is expected that in the coming years, e-commerce will expand itself creating a plethora of opportunities for retailers. (Taylor, 2010) States e-commerce refers to electronic commerce in which selling and buying of goods and services are done over the internet. To achieve a better understanding of e-commerce, you need to understand the following four market terms:

1. Business to Customer (B2C) is a process for selling products directly to customers.

2. Business to Business (B2B) is a process for selling products or services to other businesses.

3. Customer to Business (C2B) is a process where customers offer products or services to businesses.

4. Customer to Customer (C2C) is a process that facilitates commerce between private individuals. This category of e-commerce connects people to do business with one another.

Benefits of E-Commerce in Retail Industry

The endless demands of people are leading to the enormous challenges faced by traditional stores to maintain the number of goods and services to fulfill the outgrowing requests of people. That is why e-commerce is growing popular among people due to its efficiency and facility of lightning speed home deliveries. Customers often face trouble visiting traditional brick and mortar stores. But thanks to e-commerce websites, shopping online is as easy as a click of a button (Brown, 2010). Also, e-commerce eliminates middlemen and offers products at reasonably fewer prices than in stores. This dissertation examines a very renowned portal known as Amazon UK. Amazon is an e-commerce company established in the USA and engaged in selling the most extensive range of consumer products across the world. The portal was started as an online book store, but later, it was expanded to selling a complete range of lifestyle products. Amazon has separate retail websites for different countries. Amazon UK is one of the leading e-commerce portals of the United Kingdom.

Research Methodology for the Dissertation

Research methodology is a very critical part of a dissertation. By definition, research methodology is the method adopted by the researcher to collect information from different sources. The research pattern used for this dissertation is anti-positivism, i.e. interpretivism (Bogdan, 2005). This type of research theory emphasizes on the fact that an individual himself considers social reality. According to this theory, a single phenomenon usually has many interpretations. The dissertation will adopt a qualitative research methodology to gather information due to which the research paradigm will be interpretivism (Bogdan, 2005). The researcher will dedicate their time to survey 100 consumers in the UK to determine their experiences with Amazon UK. Also, this study will be adopting an inductive research approach wherein research questions will be used to narrow down the scope of the review. The research questions to be accomplished through this study are:

1. What is the impact of e-commerce on sales in the retail industry regarding Amazon UK?
2. What are the ways adopted by Amazon UK to increase the sales of the retailer?
3. What are the recommendations to improve the performance of the e-commerce website?

The sample population selected for this study will include 100 shoppers based in the UK including people who fall in the age group 18-45. The sample size is kept small due to the unavailability of many resources. As per the survey carried out among 100 consumers, some observations have been recorded.

Conclusion

Overall, e-commerce has proved itself as the fastest and most efficient medium to sell goods and services to consumers. Amazon UK is one of the largest retailer in the UK and across the globe. The growth of e-commerce has helped the organizations to increase their sales considerably. The observations recorded as per the survey carried out among 100 consumers determined that 60% of the consumers had good experience shopping with Amazon UK. The fascinating experience of shopping with Amazon UK is one of the prime reasons that sales of the portal are growing significantly.

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References

Power, M. (2013). “Online highs are old as the net: the first e-commerce was a drugs deal.”, The Guardian (London). Accessed on 14th July 2015.

Tkacz, E. (2009). “Internet — Technical Development and Applications.”, Springer. p. 255. Accessed on 14th July 2015

Palmer, C. (1988). “Using IT for competitive advantage at Thomson Holidays.”, Long-range Planning Vol 21 No.6 p26-29, Institute of Strategic Studies Journal, Accessed on 14th July 2015

Taylor, P. (2010). "Online shopping: The pensioner who pioneered a home shopping revolution". BBC News. Accessed on 14th July 2015

Aldrich, M. (2012). "Finding Mrs Snowball". Accessed on 14th July 2015

Brown, G. (2010). "The Electronic Mall". Accessed on 14th July 2015

Snider, J.H. (1992). Future Shop: How New Technologies Will Change the Way We Shop and What We Buy. St. Martin's Press. Accessed on 14th July 2015