Shopping Industry

The increasing role that the internet plays in modern life has changed the way we shop and given rise to new forms of retailing. The internet enables the quick and efficient transfer of information; this means that shoppers are better informed about the prices and quality of goods and services available for sale. Prices and a wide variety of goods can be compared at the click of a button. It has also brought about new forms of retailing. An example of this is the Theory of Long Tail Marketing as practiced by Amazon and other companies. In essence this is the selling of a small amount of a very wide range of goods. Retailers in the real world cannot do this because there is not enough room in their shops to include all the necessary stock. They have to pay rents on their premises and can only afford to stock the most profitable items.

The internet has also increased the market for second hand and used goods. Websites such as E-Bay have a huge range of second hand products.

Shops in the real world struggle to compete against online retailers because they have higher overheads such as rent and staff and prices online generally tend to be cheaper. However there will always be a place for retailers in the real world although they will continue to face stiff competition from online retailers.