New Twists on E-Commerce

The ratio of e-commerce sales to all retail sales is increasing, a trend accelerated by COVID-19. Demand for brick-and-mortar retail space is decreasing, resulting in smaller multiplier effects from retail sales in local economies. Key factors fueling the growth of e-commerce include affordability, customer convenience, easy accessibility, and competitive market conditions, though issues such as the decrease in social interactions between buyers and sellers due to online shopping, negative impacts on local economies caused by the dominance of e-commerce, and potential regulatory challenges encountered when e-commerce businesses establish substantial local footprints will prevent e-commerce from entirely replacing traditional retail.

Live shopping, a novel e-commerce model in which brands sell products via livestreams on digital platforms, often collaborating with influencers, is transforming consumer engagement with products and brands by focusing on real-time interaction. In the U.S., live shopping is projected to generate $55 billion in sales by 2026. Furthermore, as the retail sector embraces an omnichannel strategy, social selling has become crucial in the interaction between sellers and buyers. Planners are advised to monitor the effects of these and other emerging e-commerce trends on local economies, transportation systems, and urban development patterns. For more information, listen to the APA podcast episode "How E-Commerce Affects Land Use — and How COVID-19 Affects E-Commerce."