The Effect of Online Marketplace in the Economy
With the growth of eCommerce, more and more people are shopping online. This circumstance will affect the growth of the economy. Do online marketplaces help the economy in a better way? Yes, they do! See here how the online marketplace helps the economy.
- Reduce transaction cost
The expenses on selling in an online marketplace are cheaper compared with opening an actual shop. Small businesses don’t need to spend money on rent, utilities, employee or other expenses to open up a business. With the help of an online marketplace, businesses can now reach their customers online.
- Increase sales
The economy raises as customers buy. With the vast exposure of the businesses in the online marketplace, the business will attract more customers.
Using online marketplace features such as product recommendations, related products and advertisements attract customers to buy more products. Advertisements are not limited to the shop itself. You might also see them on most social media platforms like Facebook and YouTube.
- Enhanced Visibility
Through the internet, an online marketplace promotes businesses that reach people worldwide. Compared to the real markets and shops, online marketplaces have no limitations in being visible to the customers. Customers are free to view online shop anytime and anywhere.
- Establishing a relationship with customers
Building a good relationship with the customers builds their trust in the business. It is a way to increase sales and loyal customers. It may also prevent customers from buying from other competitors.
- Increase competition and productivity
Competition may also increase productivity. It’s one way to challenge to exert more effort to raise their business to the top of the competition. They are more compelling to increase sales and improve business.
Online Shopping Also Helps the Environment
Yes, online shopping helps the environment, too. Cardboards used in shipping are recyclable. They also recommend buying items in bulk because it saves shops from using excessive packaging.
According to the article, “Is Shopping Online More Eco-friendly Than Shopping Local?”, it tells that online shopping is more eco-friendly than shopping local. It says in the article physical stores produce more carbon emissions rather than online shops.
Conclusion
The online marketplace helps economic growth and the environment to some extent. People might think they only affect the economy negatively, but they are actually good for it too. We now know how online marketplaces have positive effects on the economy.
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