A look at six industries that has changed positively or negatively through e-commerce.
E-commerce has had a tremendous impact on the world economy. However, that impact is spread unevenly, and some industries have been damaged tremendously.
Here are six industries that have been changed positively or negatively by the advent of online sellers and other forms of e-commerce.
Positive: Automotive Industry
A huge positive in the automotive industry is now people can sell vehicles without going through a dealer. Many people talked about how direct-to-consumer retail will change industries, and then Tesla started selling without dealerships. They are the pioneers in the automotive industry, and many other companies are following their lead. It has also enabled customers to shop outside of their geographic location for vehicles. They can now go a state or two over to find the perfect deal on a car.
Positive: Casinos and Gambling
The gambling industry has been positively impacted by e-commerce. In the past, you had to travel to a casino or go to Las Vegas before you could enjoy gambling. E-commerce has made online casinos accessible and entertaining. It has also made sports betting easy for people. Many people now watch sports like the NFL for the fantasy league they play with their friends.
Online stores have made it easier for people to find the perfect jewelry for their needs. Consumers are also beginning to trust e-commerce jewelry stores, and they are being rewarded with great deals on certain pieces. The age of social media combined with e-commerce has also made the demand for jewelry explode in recent years.
Negative: Funeral Industry
The funeral industry has been adversely affected by e-commerce. While it might be surprising, when you look at the markups of coffins and other funeral home services, it is obvious that this would be an industry ripe for disruption. E-commerce brought along competition from different geographic locations and even independent providers. For example, a coffin that would wholesale for $300 could be sold for as much as $1500 by the funeral home. When customers could search the internet and look for alternatives, it meant that funeral homes no longer had a virtual monopoly. The ending of that virtual monopoly based on geographic area meant that this industry was changed dramatically with e-commerce. It has been harmful to the majority of funeral homes and other providers in it. However, if they can adapt, it might lead to a better future for everyone.
Negative: Alcohol Industry
The major downside for the alcohol industry is that customers now have direct access to alcohol producers. This industry had a distribution and supply network that kept customers away. They could charge as much money as they wanted for alcohol, and customers had no other option than to buy if they wanted a drink. However, the age of e-commerce and the internet has made it a more competitive market. Customers have direct access to all the alcohol they want, and there are even specialized e-commerce stores that sell different types of alcohol depending on the customer’s unique taste. The traditional market has had a downturn because of this fact.
Negative: The Music Industry
No industry has been negatively impacted by e-commerce as much as the music industry. The music industry once had a massive layer of companies and distribution networks, keeping fans away from their favorite artist. However, the age of the internet and e-commerce has made it almost impossible for these companies to compete anymore. People can find their favorite songs on YouTube for free, and most of them aren’t buying CDs anymore. All of this has changed the music industry irreparably.