Empirical Research on the Game between Physical Stores and E-commerce with Its Evolvement

Abstract

Although e-commerce is a newcomer based on IT, it has developed rapidly, and together with physical stores, they are two different forms of commodity circulation. Some people are worried about the impact of e-commerce on the real economy due to the shrinking or even closure of physical stores. The paper first suggests an empirical study on the game between e-commerce and traditional sales from costs analysis, core costs, retail proportion, then selects the relevant economic performance data of China and US before the outbreak of the COVID-19 epidemic, designing a traditional enterprise sales revenue and hundreds of large retail/traditional enterprises sales as the average operating indicators for physical stores, and compared with excellent distributors - "Top 100 Key Large Retail Enterprises in China", to search the reasons of operational difficulties for they both. Finally this paper recognizes that the game between the two transactions is conducive to shortening circulation routes and reducing transaction costs, with which the exploration of the new retail models combining various online and offline strategies, can optimize the consumer experience, meet their needs, and promote consumption escalation.

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