Online shopping is easily accessible and much more convenient to most consumers than going to malls or department stores. Online retailers such as amazon is currently has one of the biggest consumer base. According to this article, brick-and-mortar or otherwise known as physical retailers will be unable to compete with e-commerce. Predictions are made that 25% of all malls in the United States will close down in the next five years. As stated in the article, the National Retail Federation has reported that holiday shopping will be done online by 59% of all consumers. Just a few years ago, holiday shopping was usually done in store and not just the click of a few buttons. Technology has changed and business models that can adapt and keep up will be able to escape the mall closing epidemic that the “Amazon Effect” has brought.
Amazon is the most popular online retailer, so I figured that is how the term the “Amazon Effect” came to be. Online retail is the market where business competition will be headed to. Businesses will have to change their models and adapt to the newer technology and e-commerce that will bring to the table. If businesses continue to rely solely on physical locations and instead of offering product and services online, they will end up like the many malls that are closing due to the lack of consumers because they all are going to do their holiday shopping online.