How Markets Have Evolved with Technology

Markets are defined as a location where buyers and sellers meet to facilitate an exchange of goods. Nowadays, that space is the Internet. There are no borders and practically no limits as to where you can sell your product. The Internet allows a better platform for direct-to-consumer (DTC) services that reduces the overall cost of the product as mediators can be eliminated from the supply chain, allowing businesses to earn higher profits.

You can practically look for anything you need at a moment's notice on the Internet. At the same time, you can sell your product or offer your service with a few taps on your phone. All it takes is the right app. So how has this shorter supply chain provided a more effective market compared to traditional set-ups?

Online Shopping

Making purchases online makes it easier for consumers to compare prices with minimal effort. For example, consumers can visit a real estate website and purchase a property from the comfort of their homes, allowing them to browse their options more efficiently. They'll be able to save time and money themselves, reducing the cost by not dealing with an agent. Similarly, consumers can compare costs for home products online. For both of these cases, consumers can decide if something is for them just by the impression they get online.

Without having to communicate with sellers as often as before, consumers can decide whether they want the product or service just by looking at the price and how it's being marketed compared to the rest. Comparisons made easier on online platforms allow sellers to be competitive and provide consumers with a choice.

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The choice that consumers have access to online is exactly what the government believes their citizens have a right to. Even though some consumers might be hesitant to make the transition to online shopping, they are to be protected by the Fair Trading Act. This means that even though businesses have access to new technologies that can make their product or service look better, they still can't lie about it because that would be false advertising. Even though the transition between online and offline shopping is ongoing, the laws still apply to the newly developed technologies and how they are used.

Selling Online

DTC products and services are great for businesses, especially when they're just starting out. This is due to the higher profit margins that this method of selling provides. There are fewer people that need to be paid for the product to arrive at the door of consumers, not to mention how much overhead businesses save by not having to rent out or purchase a commercial space.

Another way for businesses to save money is by incorporating online purchases into their supply chain. They'll be able to have better comparisons of how much raw materials are supposed to cost and how much cheaper they can get.

Aside from having better sales leads, businesses will also be able to easily compare their performance with other stores in the market. If the business is not doing well, or maybe the owner feels like the business can perform better, it's easier for them to identify how the business is positioned in the market. This will help the business owner decide the path towards a more successful performance of their product or service in terms of sales.

Even though some websites charge a fee for allowing businesses to use their domain, it will still be less competitive and less difficult than getting a shelf space or a prime location for a physical establishment. Before, one of the factors that businesses consider when they start out is "Location, location, location." It's just as important now. But even if a business doesn't have the best location when they start out, selling their products online gives them a better chance of surviving than having a location far away from their market. Providing sellers with fair access to markets encourages them to be competitive overall.

The advantages of e-commerce go both ways. As people become less hesitant to transition from an offline to an online market, businesses have started to adapt by adding new positions to their companies that can better handle the nuances of online selling. It's a transition that all businesses will have to make eventually. And despite consumers having to take a leap of faith every time they make an online purchase, there are still laws that can be easily applied to online markets. As e-commerce grows, there will eventually more provisions put into place to liken the online marketplace to its traditional predecessor.

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