The future of e-commerce is digital, and these companies know it. Alibaba has been building its business on data for years now; Amazon’s culture revolves around making sure resources are allocated according to performance metrics so they can best serve their customers’ needs with minimal wasted time or money in situations where there isn’t enough info available at once (Alibaba). An interesting observation is that: while many traditional Brick and Mortar stores may be dying out, the latest revolution in retail from traditional online retailing only sector is coming full circle.
For example, Alibaba, the company that led the online shopping for China’s masses before it became popularized by Facebook messenger bots and voice AI assistants like Siri or Google
Home and probably did more than anyone else to boost e-commerce around the Asia Pacific will be buying physical stores. Their $2.6 billion plan to take on leading domestic department stores underlines just how much disruption these disrupters are facing right now – but don’t worry because they’ve got plenty of other plans up their sleeves.
Amazon is also going down a similar route with its cashier-free retail concept, which aims to save time and money for customers and retailers. The newly announced Amazon Go stores are slightly different – they are primarily pick-and-go groceries where you don’t have to queue up at all. Still, this merger of physical retail and online e-commerce capabilities seems to be the next step for these two companies.
It’s easy to see the benefits of having a massive online shopping mall at your fingertips, but this can’t deny that physical shops will always have an important role to play in society. There are certain things you only buy offline- like groceries or clothes- and this is where Amazon’s acquiring Whole Foods and building up its Amazon Go network of grocery stores that won’t ever need cashiers – the ultimate time saver for those who hate lines.
Wal-Mart Stores and Target are struggling to grow their revenue. Last year, Wal-Mart’s total worldwide sales declined 8% while its earnings likewise fell by more than 1%. Investors have hit this stock due to weaker performance; shares were 20% lower over the past twelve months alone. Other brick-and-mortar businesses aren’t doing much better either: less than 1 per cent growth in just one year? It is not good news for consumers who rely on these stores’ staple goods such as food or clothing–nor does it bode well when we consider how many jobs now depend upon them especially low paying cashier positions.
Amazon is a company that has been investing in growth for years. While their profits are expected to rise significantly over the next few years, they still have to train investors on how much investment will be put toward supporting long-term retail operations, which could negatively affect earnings short term as Walmart and Target must do so too. Still, Amazon doesn’t need this because it can improve customer experience.
The Amazon stock continues climbing higher while turning an actual profit–a first since 2003. The reason? It’s all about ensuring your customers don’t leave you behind by providing them with what they want when needed. It is a big reason why some analysts believe that Alibaba will buy a department store.
So there you have it – retail isn’t dead, and brick and mortar companies aren’t going down without a fight. Still, the new breeds of e-commerce giants are coming in for the kill while also recreating themselves to stay competitive enough to not get killed off themselves. We’re not sure which companies will survive or where e-commerce is going, but it’s a lot more interesting to watch than just another story about how retail is dying.
This is all part of a bigger picture – whether we like it or not, competition is often good for society in general because it forces everyone in the game to strive for something better. This could be in the form of increased convenience or affordability. However, whatever consumers love about their favourite online shopping destination it will always have to evolve to stay relevant–and this is where traditional retail meets e-commerce disruptors.