A critical assessment of “e-commerce has become more social, mobile and local”

“E-Commerce Has Become More Social, Mobile and Local” Student’s Name Institution Course Number and Name Instructor’s Name Date Table of Contents TOC \o "1-3" \h \z \u Introduction PAGEREF _Toc161717724 \h 3The Current Context of E-Commerce PAGEREF _Toc161717725 \h 3Key Trends PAGEREF _Toc161717726 \h 3Main Companies PAGEREF _Toc161717727 \h 5Major Markets PAGEREF _Toc161717728 \h 6Has it Become More “social, mobile and local?” PAGEREF _Toc161717729 \h 6Internet-enabled Mobile Devices PAGEREF _Toc161717730 \h 7Social Media PAGEREF _Toc161717731 \h 8Free Shipping PAGEREF _Toc161717732 \h 10Barriers Limiting Progress PAGEREF _Toc161717733 \h 10Fraud PAGEREF _Toc161717734 \h 10Government Regulations PAGEREF _Toc161717735 \h 11Conclusion PAGEREF _Toc161717736 \h 11References PAGEREF _Toc161717737 \h 13 Introduction The advancement of digital technologies has made e-commerce an essential undertaking for business organizations. As more of the global community moves online, companies have an opportunity to meet customer needs with the help of digital technologies. The ability to leverage the internet is thus significantly important for businesses intending to succeed in the modern competitive and internet-supported business environment. This paper seeks to examine the current e-commerce environment and determine whether it has become more “social, mobile, and local” as asserted by Laudon and Laudon (2021, p.406). The paper will examine the current state of e-commerce, assess what has made it more social, mobile and local, and examine the barriers limiting more progress. Finally, a conclusion of the findings will be provided. The Current Context of E-Commerce Key Trends The current state of global e-commerce can be described as growing in the sense that every year, online sales increase significantly. This highlights the impact technological advancement is having on e-commerce. As can be seen in the graph below, e-commerce sales have been growing tremendously, and in 2023, global e-commerce sales stood at $5.874 trillion and are projected to experience steady growth through to 2027. (Chevalier, 2024-a) Although global e-commerce has been growing as depicted in the graph above, there has been a significant return to physical stores by customers in some countries such as the UK (Byfield-Green et al., 2023). It is important to remember that COVID-19 resulted in a massive increase in online shopping given that the pandemic restricted physical movement. Therefore, as noted by Byfield-Green et al. (2023), the return to physical stores has led to plummeting sales of key retail companies such as Amazon. Other key trends that shape the modern e-commerce market are the use of artificial intelligence (AI) and TikTok. According to Evans (2024), AI can be leveraged in the current business environment to improve customer service, optimize the supply chain, and tailor marketing messages. As for TikTok, it has become an important platform through which brands can promote their products (Evans, 2024). In essence, AI and Tiktok characterize the current state of e-commerce to a great extent. Main Companies The current state of e-commerce is also characterized by the dominance of Amazon in key markets such as the UK and the US. In the UK, Amazon is the market leader, with 2021 sales standing at £23.2billion (Byfield-Green et al., 2023). Other key companies in the UK include Sainsbury, Tesco, and Argos. Amazon also controls 37.6% of the US market, way ahead of Walmart, which controls 6.4% of the market (Chevalier, 2023). Apple, E-bay, and Target are other key players in the US market (Chevalier, 2023). When it comes to the global market, Amazon is also the leader but it is almost at par with China’s JD (Chevalier, 2024-b). The graph below depicts Amazon.com and JD.com as leaders in the global e-commerce market. 381004003676(Chevalier, 2024-b)0(Chevalier, 2024-b) Major Markets China is currently the world’s largest e-commerce market with annual online sales standing at $2.78 trillion, which translates to 52% of total e-commerce retail sales (Freedman, 2023). Not only is China's e-commerce market the biggest, but it also has one of the highest growth rates in the world at 21% (Freedman, 2023). The US comes in second, with annual e-commerce sales amounting to $843 billion, representing 19% of the global total e-commerce sales (Freedman, 2023). The UK is third on the list, with a 4.8% share of e-commerce sales. Other major e-commerce markets include Japan (3%), South Korea (2.5%), Germany (2.1%), France (1.6%), and India (1.4%) [Freedman, 2023]. Has it Become More “social, mobile and local?” Laudon & Laudon's assertion that e-commerce has become more mobile, social and local is true as it resonates with the current state of e-commerce. As discussed above, the e-commerce market has been growing immensely and the growth is bound to continue into the foreseeable future. This has been made possible because e-commerce has become more mobile, social, and local. In this case, e-commerce has become more mobile in the sense that global citizens are continually using mobile devices such as smartphones to purchase products online. In the same breath, the increased use of social networks such as Facebook and Instagram implies that e-commerce is more social and associated with the interaction of people online. E-commerce has also become more local because consumers can order products from their homes and receive them courtesy of delivery services by e-commerce companies. Below are drivers that have made e-commerce more mobile, social, and local. Internet-enabled Mobile Devices The rise in the use of internet-enabled mobile device...