{"id":99725,"date":"2017-06-23T07:15:46","date_gmt":"2017-06-23T12:15:46","guid":{"rendered":"http:\/\/www.ict-pulse.com\/?p=99725"},"modified":"2017-06-22T20:43:18","modified_gmt":"2017-06-23T01:43:18","slug":"fair-blame-e-commerce-forcing-local-businesses","status":"publish","type":"post","link":"https:\/\/ict-pulse.com\/2017\/06\/fair-blame-e-commerce-forcing-local-businesses\/","title":{"rendered":"Is it really fair to blame e-commerce for forcing out local businesses?"},"content":{"rendered":"

Although Caribbean consumers might enjoy shopping online, many Caribbean businesses \u00a0are suffering and have even shut down. Is e-commerce really to blame?<\/span><\/i><\/p>\n

 <\/p>\n

It would not be an exaggeration to say that electronic (e-)commerce is firmly entrenched to today\u2019s society. To varying degrees, most of us have, at one point or another, paid for goods and\/or services online; whilst some of us do so on a regular basis. It was thus interesting that a recent article in the <\/span>Jamaica Observer<\/span><\/a> was on the subject of e-commerce and its impact on local businesses in Jamaica.<\/span><\/p>\n

Essentially, the article sought to highlight the fact that thanks to e-commerce, the Jamaican business landscape, and particularly retail, has changed \u2013 to the point where business owners are struggling to remain viable. In an example highlighted in the article, a longstanding and popular jewellery store recently closed its doors, due to poor sales, and in its place, the owners opened a restaurant. <\/span><\/p>\n

Another contributor to the change in the landscape has been increased online activity by local shoppers. Consumers do not want to be limited by geographic boundaries, and are eager to access the wider variety and more cost-effective options available internationally, which can still work out cheaper than buying locally \u2013 even after importation costs are factored in. <\/span><\/p>\n

The scenario outlined above is not unique to Jamaica. Across the Caribbean, many businesses have been having similar experiences, which not only has been damaging to their bottom line, but also threatens their continued survival. Having said this, is e-commerce really to blame? Below are some points to consider.<\/span><\/p>\n

E-commerce is not an overnight phenomenon<\/span><\/h3>\n

First, it is important to acknowledge that e-commerce did not emerge overnight. Currently, it is over 20 years old. Hence Caribbean business owners and consumers have had more than enough time to get used to it, and to appreciate its impact on commerce generally, and its the implications for their own individual markets.<\/span><\/p>\n

Caribbean business models have not evolved<\/span><\/h3>\n

Following from the previous point, and to an appreciable degree Caribbean businesses have not evolved from how they operated five, 10, or even 20 years ago. Although they might have introduced technology into their operations, at the core, the business model with which the business was started, is the very same one that is still being used today. Frequently, it means that they are not aligned with the attitudes and behaviour of today\u2019s consumers, or other important trends in the marketplace, which are much broader than just e-commerce. <\/span><\/p>\n

For example, should any business today automatically limit itself to serving its local market? One of the consequences of today\u2019s technology is the collapsing of borders and the fact that, thanks to the Internet, any business can serve the global market \u2013 if it so chooses. However, it does mean that the business model that one would implement to serve a local market is vastly different from that needed when thinking globally.<\/span><\/p>\n

Caribbean businesses have been handicapped <\/span><\/h3>\n

Unfortunately, the underdevelopment of e-commerce framework in the region means that Caribbean businesses are at a distinct disadvantage when compared with similar businesses in more developed countries. Although elaborate and modern websites can be developed, in the region, it is still tedious and expensive to secure online merchant accounts to facilitate payment, and ultimately, many ventures never truly achieve their full potential. \u00a0<\/span><\/p>\n

This difficulty in completing electronic transactions in turn limits Caribbean businesses to their local markets, especially when goods are involved. \u00a0It also means that businesses that have been conceptualised to operate solely online, effectively, cannot be the norm in the region, and if they do exist, their transactions are managed outside the region. <\/span><\/p>\n

More importantly, the diversity and sophistication of the Caribbean marketplace is limited. This narrow ecosystem is likely to remain unless, or until, the requisite frameworks, such as to support e-commerce, are implemented to move the region more fully into the 21st century.<\/span><\/p>\n

 <\/p>\n

Image credit: \u00a0Robbert Noordzij<\/a>\u00a0(flickr)<\/em><\/p>\n

___________<\/p>\n","protected":false},"excerpt":{"rendered":"

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