E-Commerce's Impact on Traditional Retail and Consumer Interaction

Abstract

The exponential rise of e-commerce has transformed the global retail landscape, significantly altering how consumers interact with businesses and make purchasing decisions. This shift is driven by technological advancements, mobile accessibility, and changing consumer expectations for convenience, personalization, and speed. As a result, traditional brick-and-mortar retailers are experiencing decreased foot traffic, revenue pressure, and the need to reinvent physical shopping experiences. This paper explores the profound effects of e-commerce on traditional retail models, including store closures, supply chain innovations, and the emergence of omnichannel strategies that blend online and offline experiences. It also examines how e-commerce has reshaped consumer behavior, with a greater emphasis on product reviews, price comparison tools, targeted advertising, and 24/7 accessibility. Additionally, the study analyzes how digital platforms have enabled more interactive and data-driven engagement between brands and consumers, using AI and analytics to tailor experiences. While e-commerce offers undeniable advantages in efficiency and reach, it also presents challenges such as increased competition, cybersecurity risks, and the decline of local shopping ecosystems. The research concludes by assessing how traditional retailers can adapt through digital transformation, experiential retailing, and customer-centric strategies that bridge the physical-digital divide, ensuring long-term sustainability in an evolving market.