Recent headlines scream the news:
We’re all doomed!
It’s just the Internet economy.
We used to complain about the large brick and mortar corporations, like Walmart, putting the locally owned mom and pop shops out of business. But now we get all bent out of shape when we read about the large corporate stores falling to Internet-based retailers like Amazon.
The failure and closing of these stores is their own fault.
They failed to recognize that advancements in technology has radically changed the marketplace. Your nearest competitor is no longer the store down the street. The big chain stores need to come to terms with the fact that consumers now carry the Internet in their pocket.
Shoppers can compare prices from a brick and mortar store by simply using their smart phone. Not only can they compare prices, they can order that exact item from an Internet seller while standing in someone else’s store.
I recently needed a fresh supply of blank DVD discs. I checked my local brick and mortar retailer:
And then I checked my online Internet retailer:
Same exact product. Huge price difference.
Given the choice, which one would you buy?
I could drive twenty miles up, pay local sales tax and drive twenty miles back. Or I could stay home, save my gas, save a bundle of money and pay no tax.
Buy local and go bankrupt. It’s a buyer’s market.
Your local mom and pop shops that attempt to compete by posting an e-commerce website will fail. They don’t have the purchasing power to buy in bulk volume to qualify for the discounts offered to large national retailers. Plus their website gets buried by search engines, relegating them to obscurity.
Yes. Jobs will be lost in one sector, but more jobs will be created in other industries. This is a natural progression of our willingness to adapt to changing technologies.
It’s the Internet economy, stupid! Deal with it.