THE IMPACT OF E-COMMERCE ON

TRADITIONAL RETAIL STORES

A Project Report of
Marwari College Ranchi (Jharkhand)
For partial completion of the degree of
Bachelor in commerce ([Link])
under the faculty of commerce

BY
PALAK AGARWAL
CLASS ROLL N0.
Session: - 2021- 2024

Under the Guidance of

PROF.
Assistant Professor
 CERTIFICATE
This is to certify that Miss PALAK AGARWAL has
worked and duly completed her/his Project Work for the
degree of Bachelor of Commerce.
([Link]/Honours) under the Faculty of Commerce in the
subject of Project work (DSE -03 ) and her project is
entitled, “_THE IMPACT OF E-COMMERCE ON
TRADITIONAL RETAIL STORES” under my
supervision. I further certify that the entire work has been
done by the learner under my guidance and that no part
of it has been submitted previously for any Degree or
Diploma of any University. It is her own work and facts
reported by her/his personal findings and investigations.

NAME AND SIGNATURE

OF
Teacher

Date: …………………….
 ABSTRACT
This research aims to investigate the multifaceted effects of
the growing e-commerce sector on traditional retail
businesses, considering economic, social, and policy
dimensions. The study will explore the economic
implications for both e- commerce and brick-and-mortar
retailers, analysing factors such as market dynamics,
pricing strategies, and consumer behaviour. Additionally, it
will examine the social consequences, including changes in
employment patterns and the overall retail landscape.
Furthermore, the research will evaluate the role of
government policies in shaping the e-commerce and
traditional retail sectors, addressing issues like taxation,
regulatory frameworks, and competition policies. By
adopting a comprehensive approach, this study seeks to
provide valuable insights into the evolving relationship
between e-commerce and traditional commerce, offering
practical recommendations for businesses and
policymakers [Link] the modern business world, E-
commerce is emerging as the biggest player and
Contributor towards the growth and development of global
economy.
India is also Witnessing this revolution of E-commerce
business in its domestic market. In the Context of India, E-
commerce players on one hand, created new and ample to
the of employment, improved the quality of product as well
as service and providing Other attractive offers. But on the
other hand, it is giving intense competition and creating
great obstacles in the ways of traditional business
institution and the on unorganized sectors of India. So, this
research paper deals with the study of the Positive And
negative impact of E-commerce on traditional business as
well as an Indian Economy as a whole. E-commerce
platforms provide customers with unmatched ease, a wide
range of products, affordable prices, and the flexibility to
evaluate possibilities while lounging in their own homes.
Due of this, consumer behaviour has changed significantly,
and traditional brick and mortar establishments have
become less common. This abstract examines the various
ways in which India's traditional retail industry has been
impacted by the e-commerce revolution. It examines the
difficulties traditional stores confront in competing with the
online behemoths, including their restricted reach,
increased operating expenses, and difficulties.
 [Link]
The advent of the Internet and the subsequent rise of e-
commerce have revolutionized the way businesses operate,
reshaping traditional retail landscapes globally. As
consumers increasingly turn to online platforms for their
shopping needs, the profound impact on traditional brick-
and-mortar retail establishments has become a focal point
of academic inquiry and policy discussions. This research
seeks to provide a comprehensive analysis of the
multifaceted repercussions of e-commerce on traditional
retail, examining its economic, social, and policy
dimensions.
Objectives:-
• To analyze how local retailers have adapted to e-commerce
trends, exploring factors such as online presence, delivery
services, and technological integration.
• To assess market dynamics and investigate how the rise of e-
commerce has affected the traditional retail market in Bangalore,
examining, changes in market size, competition, consumer
behaviors.
• To examine the challenges faced by traditional retailers in
adapting to e- commerce and explore potential opportunities for
coexisting and collaboration between online and offline retail.
• To find out the long-term viability of traditional retail in
Bangalore in the phase of e- commerce dominance, and propose
strategies for their sustainability.

Impact of E-commerce on Traditional Retail Business

[Link] Competition: Traditional retail businesses face intense
competition from various sources, including online retailers, e-
commerce platforms, and big-box stores. These competitors often
offer a wide range of products, competitive pricing, and convenient
shopping experiences, attracting customers away from traditional
brick-and-mortar stores.

[Link] Consumer Behaviour: The shift in consumer

behaviour towards online shopping and digital experiences has
posed a significant challenge for traditional retail businesses.
Today, consumers increasingly prefer the convenience of shopping
from their homes, comparing prices online, and having products
delivered to their doorstep.
3. Comparing Product Options: As compared to traditional
business, e-commerce provides customers with a wide range of
alternatives while shopping. It gives the customers an opportunity
to check out the merchandise and simultaneously compare similar
products on different websites. By doing so, e-commerce also helps
customers in comparing prices which is not an easy process in
traditional business. Therefore, customers shift from traditional
business towards e-commerce.

4. Changes in Supply Chain: With the rise in e-commerce, there

have been numerous changes in the supply chain. It is because
retailers have had to adapt to the increased demand for efficient
and fast shipping. This change in the supply chain has resulted in
new logistics and fulfilment challenges for traditional retailers.

[Link] for Integration: Besides the negative impacts, e-

commerce has also given traditional businesses some opportunities.
It includes integration between the online and offline channels.
With e-commerce, traditional retailers have successfully developed
omnichannel strategies allowing their customers to shop online and
pick up products in-store or to order the product online, and then
return them (if required) at the physical store. Examples of
businesses using omnichannel strategy include Decathlon, H&M,
etc.
 The Future of Retail Store
The retail industry is evolving, and the future holds exciting possibilities for
traditional retailers and e-commerce businesses. It’s crucial to recognize
that physical stores will not disappear entirely, but they will continue to
adapt to the changing retail environment. Here are some key trends and
considerations for the future of retail:-
[Link] Integration: The distinction between online and offline shopping
will blur further, creating a seamless shopping experience for consumers.
Retailers must continue to invest in technology and infrastructure to
support this integration.
2. Sustainability: Consumers are becoming increasingly conscious of the
environmental impact of their shopping habits. Retailers, whether
traditional or e-commerce, should prioritize sustainability in their practices
and products to meet this growing demand.
3. Mobile Device Management: Mobile Device Management
solutions for retail can securely manage and monitor mobile
devices used within their stores. This technology ensures the
proper functioning of retail devices and enhances the security of
customer data.
[Link] Intelligence (AI) and Personalization: AI-driven
technologies will play a significant role in enhancing the customer
experience. Retailers can use AI to offer personalized product
recommendations, improve customer service, and optimize
inventory management.
[Link] Shopping: Mobile devices will continue to be a primary
platform for e-commerce. Retailers should invest in mobile
optimization and develop user-friendly mobile apps to cater to on-
the-go shoppers.
6. Convenience and Speed: The demand for fast and convenient
delivery options will persist. Traditional retailers and e-commerce
platforms should improve logistics and fulfillment to meet
customer expectations.
Strategies for Traditional Retail Survival
• Adaptation and Reinvention: To thrive amidst the e-
commerce surge, traditional retailers are adopting adaptive
strategies. They are integrating digital tools for inventory
management, adopting online platforms for customer
engagement, and enhancing the in-store experience. Some
are leveraging partnerships with e-commerce entities for
market reach.
• Collaborative Approaches: Collaborations and alliances
among traditional retailers are becoming prevalent. Joint
ventures and consortiums are emerging to collectively
address challenges and share resources. For instance, local
market associations are pooling efforts to establish online
presence and facilitate digital transitions.
• Strengthening Competitive Edge: Differentiation and
personalized services remain key. Traditional retailers are
focusing on niche markets, offering unique products or
personalized services that e-commerce platforms might
struggle to replicate. They are also leveraging their local
knowledge and personal relationships with customers to
provide tailored offerings and experiences Survival
strategies for traditional retailers entail adapting to
technological advancements, fostering collaborations, and
capitalizing on their inherent strengths to carve a niche in an
evolving retail landscape dominated by e-commerce.
• Technological Integration and Innovation: The future of
India's retail landscape is poised for further technological
integration. Advancements in augmented reality (AR),
artificial intelligence (AI), and data analytics are expected
to revolutionize the shopping experience, both online and
offline.
➢REASONS BEHIND POPULARITY OF E-
COMMERCE: -
Buying and selling of goods over the internet has gained
immense popularity because of various reasons. Some of the
important reasons are listed below:

[Link] of Shopping from any place and at any time.

2. 24- hours open.
3. Offers and discounts.
4. Doorstep delivery.
5. Multiply and easy modes of payments.
6. Availability of a large range of products.
7. Feature of comparing product’s price and features.
8. Easy browsing and Searching for products.
➢ E-COMMERCE RETAIL MARKET SHARE
BY VARIOUS SEGMENTS: -
The e-commerce retail market is mainly dominated by
electronics and fashion segments.48% of the e-commerce
market is occupied by electronics. This mainly includes
smartphones and laptops. Fashion,clothing, apparels is the
next big sector with 29% of market share. 9% is covered by
home and furnishing items and 8% by baby and personal
care products. The below pie chart shows shares of various
segments in the e-commerce retail market of india by value
in 2019.