Seshadripuram Journal of Social Sciences

Special Issue, December 2019

ISSN: 2581-6748, Journal Home page: https://mcom.sfgc.ac.in/online-journal
Email: [email protected] / [email protected]
Peer reviewed Open Access National Journal, Bengaluru, India
A study on the Impact of online shopping over small retailers

Deena paul
Student of II m.com College : Kristu Jayanti college

Abstract:
In this paper an attempt has been made to highlight the impact of the increasing trend of
online shopping over the various fixed shop retailers. A certain larger population is fully
dependent upon these retailers. But the entry of e-stores with their attractive financial and
non-financial rewards and other wide varieties has strongly impacted on small retailers and
also bought a fear of uncertainty. Here we mainly study about how the retailers are effected
with the advent of online-shopping The attempt is made to see an increasing trend of online
shopping on profitability of retailers
Keywords: E-stores, fixed retailers, profit-margin, online shopping .

INTRODUCTION:
Online shopping system is very helpful for the customer, they can directly buy from their
home, through the sources of internet connection on mobile or personal computer. And the
transaction of money is completely on the real time bases. Through this online shopping
goods are directly delivered to buyers house. Online shopping technique can help to manage
products and services online by choosing the listed products from the online shopping
website customer can choose different product based on categories, here it basically help to
choose product faster and easier at one place. This technique saves time for travelling to the
seller’s place and products which are bought online will always be delivered to the footsteps
of the buyer in short, An online store is a virtual store on the internet where users can browse
the catlog and select product of interest. The selected item’s may be collected and at the time
of payment they will ask us to fill billing address and also shipping address and other
payment information like credit card or debit card etc. E-store is a form of electronic
commerce
Retailing this basically consists of selling products from a permanent location a retail store in
small quantities directly to the consumers. These consumers may be individual buyers or a
group. A retailer purchases goods or merchandise in bulk from manufacturers directly and
then sells in small quantities are known as Retail stores .
Shops may be located in residential areas, colony streets, community centres or in modern
shopping forum/ malls. Any organization selling goods to final consumers whether a
producer, wholesaler or a retailer -is doing retail business.
It does not take into account how the product is being sold. While on the other hand, retail
will have a consistence of product range, pricing, marketing and the way the items are
displayed. A retail-format will be suitable for a retailer does not depend upon market practice
but upon retailer’s budget, merchandise and the need of the locality. A good format draws
more footfalls and helps retailer a platform to succeed and earn name and fame.

Seshadripuram Research Foundation Page 41

Seshadripuram Journal of Social Sciences
Special Issue, December 2019
ISSN: 2581-6748, Journal Home page: https://mcom.sfgc.ac.in/online-journal
Email: [email protected] / [email protected]
Peer reviewed Open Access National Journal, Bengaluru, India
REVIEW OF LITERATURE:

TOPIC: Effect of Online Reviews on Consumer Purchase Behaviour

Zan Mo, Yan-Fei Li, Peng Fan
DATE: 29-june-2015
In order to understand the effect of online reviews on consumer purchase behaviour, more
than 400 Taobao shops’ online reviews are collected. Based on S-O-R model (Stimulus-
Organism-Response Model), this paper studies the influence on consumer purchase
behaviour according to online reviews of experience goods from a new perspective of
consumer learning. Using SPSS 19.0 software for data analysis and assumptions, statistical
results show that the positive reviews, describing rating, picture reviews, appended reviews
and cumulative reviews have an effect on consumer purchase behaviour.

TOPIC: Consumer perceptions of privacy and security risks for online shopping
Anthony d. Miyazakiand, Ana Fernandez
DATE: JUNE 2001
Government and industry organizations have declared information privacy and security to be
major obstacles in the development of consumer-related e-commerce. Risk perceptions
regarding Internet privacy and security have been identified as issues for both new and
experienced users of Internet technology. This paper explores risk perceptions among
consumers of varying levels of Internet experience and how these perceptions relate to online
shopping activity. Findings provide evidence of hypothesized relationships among
consumers’ levels of Internet experience, the use of alternate remote purchasing methods
(such as telephone and mail-order shopping), the perceived risks of online shopping, and
online purchasing activity. Implications for online commerce and consumer welfare are
discussed.

Objectives:
To study the emerging E-stores impacting on profitability of retail shops.
To study the changing pricing patterns of retailers to face the competition from E-stores.
To study the changing business patterns of retailers to achieve customer retention.
To analyse the new business pattern for achieving their customer satisfaction.

Methodology of the study:

The Research Methodology consists of sampling techniques and statistical tools for analysis,
data interpretation etc.
Source of data
The data for this particular study is been collected through primary data. the sources for the
primary data are direct and personal interview from the retail owners.
Seshadripuram Research Foundation Page 42
Seshadripuram Journal of Social Sciences
Special Issue, December 2019
ISSN: 2581-6748, Journal Home page: https://mcom.sfgc.ac.in/online-journal
Email: [email protected] / [email protected]
Peer reviewed Open Access National Journal, Bengaluru, India
Universe of the study
The study consists of the retailers in Bangalore city. And the retailers have chosen in a
random format for this research purpose
Sample Unit
For this study a sample of 20 retailer stores has been selected on the basis of convenient
sampling for the purpose of the research.
Sampling Techniques
For this study convenient sampling technique method has been applied on the bases of
availability of information in the market so as to give more accurate picture of the impact of
online shopping.
Data representation tools
The data has been collected and classified and presented through bar diagram

Importance of the problem

Shopping over the internet is becoming popular over shopping from physical stores, because
of various reasons but we cannot close our eyes on seeing the pitiable conditions of physical
retail stores due to the popularity of virtual shopping. The physical shops incurs heavy cost
on storing and referring their product from the view of customer satisfaction and availability
of services, online shopping has badly affected the physical retail stores.

Limitations :
the detailed study has been conducted taking on 20 retail stores based upon convenient
sampling.
Time is also a limiting factor as the study is conducted in a very short span of time.
The belove study and analysis is basically made to understand that if there is any change is
the customer behaviour towards the retail store on the advent of online stores.

Seshadripuram Research Foundation Page 43

Seshadripuram Journal of Social Sciences
Special Issue, December 2019
ISSN: 2581-6748, Journal Home page: https://mcom.sfgc.ac.in/online-journal
Email: [email protected] / [email protected]
Peer reviewed Open Access National Journal, Bengaluru, India
Data presentation:
Table:1

List Of Question Yes No

Is there any decrease in profit 14 06
margin?
Do customers ask for discount 15 05
before making purchases?
Have you made any increase 16 04
in discount rates offered to
customer in recent times?
Has there been any decrease in 15 05
average turnover?
Do you keep more variety of 06 14
stock at your store now-a-
days?
Is there an increase in window 17 03
shopping in recent times?
Do you advertise about you 08 12
enterprise?

Chart-1

18

16 17
16
14 15 15
14 14
12
12
10

8
8
6
6 6
4 5
4 4
2 3

0
Decreasein Discounts Increasein Decreasein Morevariety Increasein Advertisment
profit margin before making discount rate average ofstock window
purchase in recenttimes turnover? shopping

Agree Disagree

Interpretation:
Most of the retailor they have been faced very low profit margin has there is a high amount of
discount is been allotted through that sight .And as there is many offers prevailing in the
online website the customer ask for discount before going with the purchase. the retailer has to

Seshadripuram Research Foundation Page 44

Seshadripuram Journal of Social Sciences
Special Issue, December 2019
ISSN: 2581-6748, Journal Home page: https://mcom.sfgc.ac.in/online-journal
Email: [email protected] / [email protected]
Peer reviewed Open Access National Journal, Bengaluru, India
retain the customer so they have to make certain offers for the product. The table highlights that
there has been a decrease in turnover in most of the enterprises with a figureas high as
80%.retailors are maintain a few variety of stocks so that this will meet the requirement of the
customers.as of 85% retailer are pointing out that there is an increase in the window shopping.
Findings:
a. Turnover and profit margin of the retailers has considerably decreased in the past few years.
b. Retail stores are now-a-days more engaged in services related to customer satisfaction.
c. Although the retailers are not able to keep a wide variety in their stock, they attempt to
keep the best of them so as to affect more sales.
d. Customers are seen to make window shopping at an alarming higher rate to have a
physical look at the product and buy that product online at a reduced rate.
e. Retail stores are now starting up with home delivery services of their various products at
the door step of their customers.
f. The consumers become more comfortable with the experience of purchasing online with
the convenience and product range become relatively more important as a deciding factor for
shopping online.
Suggestions:
The retailers need to make substantial investment in acquiring some advanced expertise in
developing more accurate and scientific demand forecasting models
 The existing small and medium independent retailers is to closely examine are taking
place in their immediate vicinity.
 The next effort should be to encourage retailers to make some investments in improving
the interiors of their respective establishments to make shopping an enjoyable experience for
the customer.
 Retailers have to change the attitude towards customers and the market, fixing their priority
as consumer satisfaction.
 A retailer should be in the good books of customer by providing better quality products,
fair price and friendly after sales services.

 A loyal customer reduces the cost of retailer. All efforts should be put by retailers to build
up the loyalty which in turn will bring a stable sale and stable customers like bonus points,
free insurance, preferred customer status, cash back schemes and other special offers which
satisfy the customer.

Conclusion:

The face of retail has changed. The advent of technology in recent period being the primary
reason for it. Today, retailing means going into shopping canters, going online and going
mobile. In all these, small retailers miss out somewhere. But the nearby store is always the
most important concern for all reason and seasons. It needs to revive not just survive. The
retail stores needs to simply uplift its pattern of business and face the competitive world with
a more positive outlook. E-stores and retail stores both have to survive, none at the cost of the

Seshadripuram Research Foundation Page 45

Seshadripuram Journal of Social Sciences
Special Issue, December 2019
ISSN: 2581-6748, Journal Home page: https://mcom.sfgc.ac.in/online-journal
Email: [email protected] / [email protected]
Peer reviewed Open Access National Journal, Bengaluru, India
other. It’s not just about the livelihood it gives to the thousands of people but also the
convenience and the steadfastness of a fixed retail store.

References:
1. Belk R.W (1975), “Situational variables and consumer behaviour”, Journal of Marketing,
11, pp156-163.
2. Burki, Raymond. R (1997), “Do you see What I see? The future of Virtual Shopping”,
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3. Coleman, Calmetta. Y (2000), “Making Malls Convenient”, Wall Street Journal, Feb 8,pp
B1-B4.
4. Sherry Lotz (1999), “ Profiling Potential Adopters and Non-adopters of an interactive
electronic shopping medium”, International Journal of Retail and Distribution Management,
27(6), pp 209-223.
5. Soyeon Shim, Mary Ann Eastlick, “Assessing the impact of internet shoppers and internet
users”, Journal of Shopping Center Research, pp7-43
6. Jupiter Research/ paypal Survey, Jan2008
7. Kothari, C. R., Research Methodology Methods and Techniques, 2nd Revised Edition,
New Age International (P) Ltd. Publishers, 2010

Seshadripuram Research Foundation Page 46