Online trading: the Internet is merging with the real world

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Worldwide is always buy more on the Internet. Of a few large corporations benefit. The question is: in the future, everything in Cyberspace or will it remain a business that one can enter physically.

Most people are very convenient – why so heavy shopping bags to lug home, where you can leave it at the parcel service to do? Why trudge from business to business, pilgrims, if prices and products easily online compare? In short, why their homes to leave, if you can do the purchase via the click of a mouse? This also applies to Germany.

More than three-quarters of Germans surf the Internet, buy. The are about 50 million Online buyers. Ordered almost everything from clothing, furniture, household goods, entrance accommodation cards up to leave. Not-so-good products in the field of electronics and food, run by the Federal Statistical office recently announced.

A trend reversal is not in sight. The Online trade is growing, albeit not quite so rapidly. Last year, he’s in Germany reached a volume of almost 49 billion Euro, it is the trade Association of Germany. This year he will grow a further ten percent, according to the forecast.

Place deer such as Amazon dominate the business

Of the business in the virtual space, not all benefit equally. In many countries of the world, three major players dominate the Online trading. The two American giants of Amazon and eBay, as well as the Chinese trading platform Alibaba. In the process, Amazon has clearly the nose in front.

Also in Germany, the Internet giant Amazon is able to offer the very front: as a dealer and as a trading platform, on the other their products. Nine out of ten German order, has determined the consulting company PricewaterhouseCoopers (PwC) in a survey of 2017. Similarly, Amazon has set the market in Japan, the USA and the UK. In the Rest of the world, the group is not quite so successful: The global average of the proportion of Amazon users among the Online shoppers, with 56 per cent, much lower.

“The large Online providers to build their market power continuously and can secure an ever-bigger piece of the pie – at the expense of the stationary trade,” says Thomas Harms, trade expert of the consulting firm Ernst&Young (EY). The show is also in the lucrative Christmas business. Here, the stationary trade this year had to adjust to a slightly declining business, Harms. The survey from EY shows a good every fifth German buys now his Christmas presents prefer to online. A year ago, the share of E-Commerce-user is only half as high.

Offline shops to stay alive

While the Online grows-trade, but not necessarily for the shops that offer in the real world. According to PwC, almost 60 percent of German whip out at least once per week in the stationary trade your wallet. More than three years ago, where only 46 percent found their way to the shops.

In other European countries, the classic retail is worse. The European average was only 43 percent buy. This is the result of the “Global Consumer Insights Survey in 2018,” PwC over 22,000 consumers in 27 countries, respondents.

Of course, in the meantime, some of the brick and mortar retailers discovered Cyberspace and offers its goods there as well. In addition, the manufacturer before bumping yourself to the Internet. According to data of the trade Association Germany, a quarter of the traditional retailers, has it’s own Online Shop. Around 15 per cent sell goods via Online market places such as Amazon or Ebay. Thus, the stationary Internet has grown stronger than the original Online retailer.

The transition takes place, but also Vice versa: Some of the virtual dealer take the step into the real world. Also, the Platzhirsch Amazon are now Offline shops. First Amazon-Go-shops there are in the United States.

The virtual and the real Shopping world merge

Online – Offline: in the Future, everything will merge together, it is believed at the consulting firm PwC. So there will be also shops that can be accessed in the real world. Whether purchased or not, in addition to the shopping experience, PwC decisions.

Such an experience will in the year 2025, through a variety of technologies, for example Augmented Reality (AR) applications (i.e., the computer-assisted extension of reality perception), or using a shopping robot. Personal assistance systems, and Wearables to communicate in the future directly with the systems of the merchant. Already, the Smartphone as a shopping assistant is important when shopping and the importance is expected to increase.

Online trading is bad for the environment

So nice and convenient of Online shopping is also – it also has some problems. The resulting packet flood swells more and more. In the last year alone 3,35 billion courier, Express and package consignments were sent in Germany alone, about half of which was caused by the online trade, the German Association of parcel and Express logistics. For the environment, but it is a Disaster, if each packet is individually driven by a delivery truck in front of the front door.

To get around this Problem in the handle, are also in demand of new technologies. So the Post is working on concepts of Delivery, where E-vehicles are used, and in which the paths are optimized. Also in the area of logistics, new technologies can show a way out. So Amazon has been testing package delivery by drone. And in China, a small brings to the delivery robot is already food to the customer.

But there is another Problem. After it became known that Amazon mass destroyed returned goods, has moved the handling of returns into the field of view. In Germany alone, every year sent a three-digit million number of packages on Amazon, Zalando and co. back. Not to the garbage that is caused by the many packaging. Paper, cardboard, carton, foil and Styrofoam – it’s not supposed to be anything damaged on the way to the customer. The Online Shopping Boom: A Trend with some of the shadow sides.


  • Even Santa shops at Amazon

    Yellow Tower

    In the US, Amazon is able to supply almost half of the Americans within a half hour. Also, Germany is an important market for the Online retailer. Who goes in Bad Hersfeld, Germany (state of Hesse) on the yellow tower through the locks, enters the realm of the Amazon, with a warehouse area the size of about 15 football fields.


  • Even Santa shops at Amazon

    First books, then everything else

    Nine logistics centres already exist in Germany. In addition, Amazon plans to open three new centres. In Bad Hersfeld, the so-called “Picker walk” through the corridors to the ordered Goods to pick out. Started the Amazon founder Jeff Bezos, in 1995, with the sale of books via the Internet. Today, he delivers almost everything.


  • Even Santa shops at Amazon

    Orderly Chaos in Bad Hersfeld

    In Bad Hersfeld is stored according to the “Chaos principle”. Here is a free space…?! then clean with the goods. Books, electronics, movies, clothes, Cloud services – Amazon is trying to sell themselves constantly to new areas of business, such as services or used car online. Recently, the group opened real bookstores, and Pop-up Stores.


  • Even Santa shops at Amazon

    Market power is always expanded more

    Not every order via Amazon leads to a Picker engages the shelf and the product scans. Because Amazon does not have all the goods to yourself. Against Commission, other traders may use the Amazon platform. They implemented in Germany in 2015, even more than Amazon itself. Also, with your help, Amazon is becoming a monopoly in the Online trading.


  • Even Santa shops at Amazon

    Billion, sales in Germany

    How big is the market power, show Figures from the EHI Retail Institute and Statista: Approximately 7.8 billion euros, implemented by Amazon in Germany in 2015. Followed in large distance by Otto (2.3 billion euros) and Zalando (about a billion Euro).


  • Even Santa shops at Amazon

    What for the Impatient

    Faster and faster, the customers are supplied. Initially, there were several days – today Amazon offers in some cities, the delivery within two hours. But race is not an employee in Bad Hersfeld through the shelves. The secret lies in sophisticated logistics.


  • Even Santa shops at Amazon

    Tariff: logistics or retail?

    In order to cope with the rush during the Christmas season, searches Amazon alone in Bad Hersfeld, in addition to the regular workforce 2000 seasonal workers. Paid just over 10 Euro gross per hour. Too little? A lot of my Yes! And so will always strike again. Since the spring of 2013, a duration of simmering conflict between the trade Union Verdi and the Online retailer Amazon.


  • Even Santa shops at Amazon

    Strikes as a part of everyday life

    Verdi calls for a payment according to the Tariff of the item and the shipping trade. Amazon, however, as the logistics group. With the strikes you can handle it well, says site Manager, Norbert Brandau (photo). The customer would have none of it. On the question of whether Amazon not intend at all, to the strikers, he replies only: “trade Union and Amazon, that fits together.”


  • Even Santa shops at Amazon

    A corner for conversations

    After all, the employees have, since June 2014 in all German shipping centers that Amazon works councils. In Bad Hersfeld are the longer. Conversations you must lead here in such a padded, open-top fenced-in area of the large warehouse.


  • Even Santa shops at Amazon

    Help from abroad

    Strike? Then, is not just delivered from Germany. “Amazon is positioned to strike-related shortages of logistics centers in the neighboring countries”, says Kai Hudetz from the Cologne Institute for trade research. In total, there are 31 logistics locations in Europe. Amazon in Poland would mostly be paid only 3.50 euros per hour, says Verdi. Amazon denies it.


  • Even Santa shops at Amazon

    Refugees welcome

    Unlike many German companies, Amazon has made with his promise Seriously. So 300 refugees, including Ganam Alturky from Syria (photo) work in Bad Hersfeld. He makes his training to become a specialist for warehouse logistics. Who wants to Harm the group, could of course speculate that these employees are likely to complain hardly about working conditions and low wages.


  • Even Santa shops at Amazon

    Pack pack on the Assembly line

    Low wages – for the customer that is in doubt: the prices are low. And so most of the first look at Amazon, if he wants to buy something online. At the Peak order day in the past year, the 14. December 2015, have been ordered Amazon.de over 5.4 million articles.


  • Even Santa shops at Amazon

    From the loss zone

    So great is the power of the market, Amazon has shown long losses or only minimal profits. Due to the high investment, it said. This year but Amazon surprises with record profits in the last two quarters. Good for the founder Jeff Bezos (photo). He holds around 17 per cent of the shares in Amazon, and is – according to the magazine “Forbes” – the third richest person in the world.

    Author: Insa Wrede