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Sunday, December 1, 2013

Retailing Online

The. volume of online commerce is increasing everyday. The question arises, whether it all coming at the expense of brick and mortar stores. Or is it coming mostly from a century old media, the mail order catalog industry? Online industry is competing against a format of retailing which was in existence for thousands of years. But, in terms of economic sensibility, how much should online retailing should expand on?

Big box retailing is labor intensive. Starting from front line salespeople to warehouse employee and management, retailers have to deal with a huge payroll. But is online retailing a whole lot less labor intensive? It is true they don't need front line salespeople, but they need to support a bigger IT department and shipping operation.

From customer perspective, websites gives the opportunity to see who is offering what and at what price. You can save yourself from the trouble of going to the shopping mall and walk in the Isles by ordering online. But remember someone else is doing it for and somehow you are paying for it. There is a environmental impact of that too. Each time delivery person come to home to deliver that item, he or she come in a big truck and sometime make several attempts to deliver it. That's green house gas delivered to the environment alongside your item to your door. Now, if drones deliver the order, it will have a bigger environmental impact. Drones will probably not be emission tested like lawnmowers. Besides, we'll probably be walking around with umbrellas all the time in fear of accidental falls of parcels from the sky or crash landings of drones.

Meanwhile, I urge everyone to take a break from clicking, get off the desk and go to a mall. Get yourself the exercises that you need. Enjoy the movie and the food malls offer. Pick up a thing or two from the stores. Rest assured, you'll be doing the same thing a Egyptian would do on a break from building pyramid four thousand years ago.