Online Shopping around Christmas Time - Essay Example

Online Shopping Online shopping is one the easiest and the most perfect way to purchase their products. Recent research has indicated that a number of people are addicted to online shopping. There are thousands of websites that facilitate online shopping transactions. It is thus a special option to shop for people who use the service almost on daily occasions. Due to the world becoming a digital and a global village, one can shop anything from any corner of the world so long as one has a personal computer (PC) and internet connectivity. However, for one to shop online, one has to have credit cards such as visa and master card and even a Paypal account. Furthermore, one should also possess a valid email address. Therefore, this paper will evaluate the impact of online shopping during Christmas time, but before going into details, it would be important to discuss the merits and demerits of online shopping (Forrester 2010). With the advent of ubiquitous technology, the trend of online shopping has actually gained an increasing level of popularity. In addition, a lot of businesses have adopted the digital platform for the sale of their products online to reach consumers worldwide and also as a means of increasing competitiveness. Online shopping offers the advantage of being convenient in terms of both time and effort spent on shopping. Moreover, online shopping offers the privilege of shopping at any location in the world. There is no time wasted in moving from one store to another but just the comfort of one’s home. It also enables one to take ample time in choosing a product and above all there are forums for consumers to exchange ideas which assist an individual in making a wise and informed choice. Customers are saved from the pressure from venders and thus they are able to shop according to their preferences (Forrester 2010). On the contrary, online shopping comes with various setbacks. Privacy is very essential for online shopping and thus many people are in fear of security issues. Frauds for instance credit card frauds and the use of personal information for other purposes is the main primary concern against online shopping. However, when buying items such as clothings, many customers feel apprehensive because they cannot feel the texture as compared to shopping in a retail store. Due to the availability of vast choices to choose from, customers without vast information about the products the products they need makes them waste a lot time in making a decision. Finally, instore shopping is fan to people who prefer shopping with friends and families which is not the same in online shopping (Forrester 2010). Online Shopping During Christmas Festivity Christmas festivity is generally intended to foresee religious beliefs of the birth of Jesus Christ. However, in recent years, the trend has changed to more observance of online shopping, contemplation and bargains. It is a period when many people engage in buying items such as gifts and presents for their loved ones. Christmas festivals are accompanied by extensive spending in the economy as studies portray. Many households engage in last minute shopping as the Christmas day approaches. In addition, the trend of instore buying has continued to lose touch as more and more people engage in online shopping as an alternative shopping method. Basically, during Christmas times, most retail stores are overcrowded with customers aiming at ensuring that they have bought everything they need in the celebration of the big day. Therefore, stores encounter numerous customers and thus some people opt to use online shopping because of its convenience and time saving nature. On the other hand, customers are lured into extensive spending because of their insatiable nature for shopping together with discounts and sales pitches (Mankiw 2011). Christmas period goes in handy with reduced prices of goods and services that lead to customers doubling up. Furthermore, another contributing factor that leads to online shopping during Christmas period is the vouchers received during shopping. Also, gifts that are given sometimes become unwanted and customers tend to return them for exchange with other items. More so, online shopping offers free delivery services where products reach their owners in their home. People do not need to go and carry huge luggage of goods hence they prefer online shopping. In contrast, due to the increasing level of online shopping during the Christmas period, there come consequences. Most customers want products and want them very fast at a set duration of time. However, due to increased purchases, there exists delay and some postal as well as shipping companies stipulated that delivery was more than they expected. Moreover, those in far countries experiences delays as a result of bad weather. Article Summary Online Sales Contribute to Christmas Boost For Retailers by Angela Monaghan During Christmas periods, customers engage in the last minute rush to do their shopping. It is a time when sales are high and the economy is faced with vast spending of billions of dollars. Basically, customers are attracted to shop more by coupons offered, discounts as well as vouchers. The following is a summary of the main ideas portrayed by the article “online sales contribute to Christmas boost for retailers” posted by Angela Monaghan for The Guardian on Friday 10th January 2014 (Monaghan 2014). The last minute rush by customers to buy Christmas gifts online saved retailers and boosted their December sales. It was reported that retail sales had increased by 1.8% higher as compared to early in the month a year earlier. It was however lower than November’s 2.3% sales rise as stated by the British Retail Consortium/KPMG monthly report. On the contrary, online shoppers were looking for the best deals on electrical and toys while Christmas jumpers and coats boosted the sale of clothings. Therefore, only specific industries, companies and businesses experienced the last minute shopping for the Christmas holiday. The last minute rush had arrived as expected by the British retail stores and many businesses. On the other hand, the retailers that offered customers flexibility in shopping benefited because customer had a chance to order online from Smartphones and tablets as they expected free delivery to their homes. Retailers had adopted innovative measures such as click and collect and other ways to make a vitue of both their physical shops but with emphasis on their websites (Monaghan 2014). Moreover, internet sales that excluded food rose by 19.2% in December. Online retail had boomed by December 2013 which saw many retail chains expanding their internet offering. There were increased sales for majority of the retail industry in the UK where increasing sales were as a result of online shopping. Due to the massive competition encountered by retailers, those that offered same day delivery at reasonable prices stood as winners and it was predicted that they would also be winners for the 2014 sales. Thus retail sales rose by 0.4% in December. Many shoppers who faced a budget constraint still economized to afford little luxuries here and there for instance purchases of bedroom furniture, clothing and kitchen appliances (Monaghan 2014). Online shopping proved very fulfilling to customers around the globe. For instance, in the US, online sales increased tremendously during Black Friday as the Christmas day approached. Furthermore, studies indicate that holidays do attract mega spending in the economy, raising tax revenues to the government as well as super profits to retailers. Therefore, based on the customer’s preferences and tastes, they opted to shop online to save the time and transport cost of visiting shopping outlets. Moreover, those faced with budget constraints had to search for the best deals that would satisfy and fill their market basket. Hence the economy during Christmas time experiences growth. There exists a market equilibrium since the demand is satisfied by the supply but fast moving goods (Mankiw 2011). The policies addressed by Gregory Mankiw are very fundamental for a successful performance of the economy. If well utilized by the government, businesses and customers, there would be distributed growth within all sectors of the economy. This would not only occur during Christmas periods, but throughout the year. It thus becomes important for economic specialists to address them and offer advice to the general public and entrepreneurs so as to promote a conducive business environment. Moreover, every business should adopt online marketing strategies to reap the benefits of going digital as the trend of online shopping increases. Additionally, security strategies should be implemented by banks and online stores to prevent frauds and personality theft. This would enhance more customers engaging in online shopping with confidence against security threats (Mankiw 2011). Conclusion Online shopping refers to buying and selling of commodities via the internet. It is accompanied by both merits and demerits. Its benefit includes; time saving, there are wide range of products to choose from together with product reviews. On the other hand, online shopping is threatened by online privacy and credit card theft. However, as the world is becoming more and more digital, shopping for commodities online has become popular globally. Furthermore, the trend is very common during holidays and above all during the Christmas time. There has been an increasing online sales for retailers. Therefore, online sales should be encouraged and adopted by all business enterprises from all industries as well as the government to boost economic growth, development and stability. The policies addressed by Gregory are very much important for economic equilibrium as benefits are evident through growth and development. Finally, this paper has helped me appreciate online shopping because of the benefits it comes with. More so, it has expanded my knowledge on economics through an understanding of the application of theoretical economic policies. It has also enriched my research methods and I am confident it is has opened my eyes to excellence. Work Cited Mankiw, N. Gregory. Principles of microeconomics. Mason, Ohio: Southwestern Cengage Learning, 2011. Print. Forrester, Duane. Turn clicks into customers. New York: McGraw-Hill, 2010. Print. Monaghan, Angela. "Online sales contribute to Christmas boost for retailers." the Guardian, 2014. Web. 2 Apr 2014. Retrieved from: http://www.theguardian.com/business/2014/jan/10/online-sales-christmas-boost-retailers Read More