Amazon Effect
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The disruptive effect of e-commerce on the global retail industry has been referred to as the Amazon Effect: the term refers to Amazon.com's dominant role in the e-commerce market place and its leading role in driving the disruptive impact on the retail market and its supply chain. The effect has been heavily researched by numerous studies, including an in-depth Harvard Business School study by Alberto Cavallo. The Amazon Effect has been found to cause numerous changes in the retail market. Among these impacts is an increase in price flexibility and uniform pricing in traditional brick-and-mortar stores. An externality of the increasing price flexibility and uniform pricing has been a decrease in pass-through inflation. Various other studies have revealed that the Amazon Effect has forced retail malls and offline retailers to create an experience around offline shopping in order to pull business away from eCommerce. Finally, it has been discovered that eCommerce has pushed retailers to increase their incorporation of technology to make offline shopping more convenient and faster.
The disruptive effect of e-commerce on the global retail industry has been referred to as the Amazon Effect: the term refers to Amazon.com's dominant role in the e-commerce market place and its leading role in driving the disruptive impact on the retail market and its supply chain. The effect has been heavily researched by numerous studies, including an in-depth Harvard Business School study by Alberto Cavallo. The Amazon Effect has been found to cause numerous changes in the retail market. Among these impacts is an increase in price flexibility and uniform pricing in traditional brick-and-mortar stores. An externality of the increasing price flexibility and uniform pricing has been a decrease in pass-through inflation. Various other studies have revealed that the Amazon Effect has forced retail malls and offline retailers to create an experience around offline shopping in order to pull business away from eCommerce. Finally, it has been discovered that eCommerce has pushed retailers to increase their incorporation of technology to make offline shopping more convenient and faster. ===Effects on competitors=== McBeath notes the importance of differentiation as a business strategy adopted by competitor businesses.
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