E-Commerce and its Impact on Physical Retail: Consumer Behaviour and Strategic Adaptation

Abstract

This research study has undertaken a techno-economic assessment on how e-commerce has affected traditional retail using an integrated qualitative and quantitative methodology. The quantitative research indicates that there has been a growing trend toward digital transaction activity, growing levels of consumer uptake of e-commerce, and increasing price efficiency through e-commerce, as well as a corresponding decline in customer footfall in physical stores, suggesting a direct relationship between the physical and digital channels. The qualitative research indicates that online channels are preferred by consumers who appreciate their convenience, accessibility and customization compared to physical channels, but consumers still use physical channels for product evaluation, building trust and making immediate purchases. This suggests a hybrid model of consumption, where the choice of which channel to use is influenced by the context of the purchase. The results indicate that retailers need to develop an omnichannel retail strategy that combines both online and in-store capabilities. This research contributes a unified framework for measuring the environmental impact of e-commerce and traditional retail, in addition to providing a basis for sustainable retail transformation in the changing digital economy.

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