INTRODUCTION

E-commerce has rapidly changed the retail environment, impacting various industries and

forms of traditional commerce. E-commerce is the buying and selling of goods or services over

the internet, and it has emerged as a leading player in global trade (Keller, 2023). As more

consumers opt for online shopping due to its convenience, competitive pricing, and wide

selection, the mounting pressure on traditional vendors who have long relied on physical

storefronts and face-to-face interactions is overwhelming (Smith, 2021). This shift has deep

impacts on the operational strategies of traditional vendors and the retail ecosystem as a whole.

The growing penetration of the internet and mobile devices is one of the key factors that

drive e-commerce growth. According to a report from the International Telecommunication

Union, 2020, more than 4.7 billion people around the world are now accessing the internet,

providing an ever-increasing potential online consumer base. As people continue to adapt to

digital platforms, traditional vendors are forced to reconsider their business models and include

digital strategies in order to remain competitive (Chang, 2022).

The COVID-19 pandemic further hastened the shift to e-commerce, as lockdowns and

social distancing measures pushed consumers to seek even the most basic goods online

(Hernandez & Lee, 2021). Traditional vendors, especially SMEs, were disrupted in their

operations because of the closure of physical stores. This situation highlighted the significance of

e-commerce as a lifeline for maintaining business continuity (Garcia, 2021).

The old-time vendors are seeking ways to embrace e-commerce into their business

strategies. The most common approach has been the development of an online presence through

e-commerce platforms such as Shopify or Lazada (Tan & Lau, 2023). These allow vendors to
extend their reach beyond the immediate geographic location and tap into national and even

global markets, transcending the physical constraints of their locations (Nguyen, 2020).

However, there are many challenges facing traditional vendors from the shift to e-

commerce. One major problem is the poor digital literacy and technical infrastructure in most

small businesses (Santos & Ramirez, 2022). In most cases, these vendors will find it difficult to

operate the complex e-commerce platforms, configure secure payment systems, and offer online

customer care (Lee, 2021). Thus, many of these traditional vendors have found it challenging to

compete with the big technologically advanced firms.

Another challenge that traditional vendors face is the increased competition from e-

commerce giants like Amazon and Alibaba. These global platforms benefit from economies of

scale, vast product inventories, and sophisticated logistics networks, making it difficult for

smaller vendors to compete on price and delivery times (Johnson & Wang, 2021). Additionally,

the low operational costs of e-commerce businesses allow them to offer attractive deals that

traditional vendors, with their higher overheads, cannot easily match (Perez, 2022).

Despite all these barriers, traditional vendors are not letting this opportunity go away.

Some are putting money into hybrid models. This type of model is actually a mix between a

physical store and an e-commerce platform, allowing vendors to cater to customers who shop

both in-store and online (Lin, 2020). There is also the so-called "click-and-mortar," whereby

vendors can provide a seamless shopping experience that integrates online convenience with a

tactile visit to the physical store for customers (Tung, 2023).

Some of the traditional vendors are embracing e-commerce technologies, such as

artificial intelligence (AI) and machine learning, to optimize inventory management, enhance
customer experiences, and streamline operations (Kim, 2023). Through these technologies,

vendors can offer personalized recommendations, improve supply chain efficiency, and increase

customer satisfaction, which helps to maintain their market relevance (Davis, 2021).

The rise of social media and influencer marketing has also opened new avenues for

traditional vendors to interact with customers and market their products online. Social media

platforms such as Instagram and Facebook have become essential tools for vendors to advertise

their products, run promotions, and build brand loyalty (Reyes & Thompson, 2022). This shift

has made many traditional vendors realize the significance of digital marketing in driving traffic

to their e-commerce platforms (Chen, 2020).

However, the growth of e-commerce also poses a concern regarding its influence on

traditional retail jobs. When consumers increasingly turn to online platforms to shop, demand for

the number of employees working in brick-and-mortar retail has been declining, forcing people

out of work in industries such as sales, cashiering, and inventory management (Harrison, 2021).

Many traditional vendors have had to lay off staff or reduce working hours, which has had

broader economic implications, especially in local communities where retail jobs are a

significant source of employment (Smith & Allen, 2022).

On the positive side, the shift to e-commerce has also created new job opportunities in

sectors such as digital marketing, logistics, and e-commerce technology development (Morris,

2022). Companies involved in online retailing need personnel to manage their websites, handle

customer service inquiries, and oversee product distribution, creating new employment avenues

in the digital economy (Lee & Chang, 2021).

challenge and an opportunity. Although the shift to online shopping has increased competition,

operational challenges, and job displacement, it has pushed traditional vendors to innovate and

adapt in order to stay relevant in an increasingly digital marketplace. As technology advances, it

will further shift retail landscapes, mostly with e-commerce moving to increasingly dominant

roles in reshaping the future of retail (Ong & Lee, 2023).

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