On-Line Sales have Knock on Effects :
Where will on-line shopping go? Will it be the wave of the future or a way to drown your competition. Amazon is forcing businesses like Walmart and Target to keep up by offering Free Delivery on orders over $50 and also maintain a Bricks and Mortar presence. Delivering goods to the customer instead of the customer picking up the goods is expensive. Amazon has partially externalized the shipping expense and delivers to the major centers itself then private companies like Purolator, UPS and other Independent Operators do the final mile as it is called. But Amazon was built from the ground up to provide this kind of service so it was already streamlined as far as property and employees are concerned. At the end of the day deliver services have High Maintenance costs, High Energy costs, High Wage costs and High Insurance costs. Those are prices that fluctuate and do they ever fluctuate... usually in the upward direction. The fact that online sales have increased means the demise of the bricks and mortar Retail Sales Model. Malls will close one by one and jobs will be lost, jobs that won`t come back! Which will in turn, turn up the pressure in the job market and put downward pressure on wages. As the cost of living increases this will in effect what people can afford to buy, food or a new gadget or car. Maybe even lose their home.
A home is one of the biggest generators of sales in an economy there is. When you are buying a home it is a continuous maintenance and upgrade project. Many of those services are hired and the money they earn is spent back into the economy. Driven by pride, or necessity the spending in that area is immense. There is nothing to be gained by society or the individual by losing their home. Creating a vast number of dispossessed, disenfranchised people with a hard on for Government and Society as a whole. We are truly being led by the blind!!! I also don`t think we realize just how connected we all are, one employee creating work for 4 other people through their purchases.. that is something to think about!
Where will on-line shopping go? Will it be the wave of the future or a way to drown your competition. Amazon is forcing businesses like Walmart and Target to keep up by offering Free Delivery on orders over $50 and also maintain a Bricks and Mortar presence. Delivering goods to the customer instead of the customer picking up the goods is expensive. Amazon has partially externalized the shipping expense and delivers to the major centers itself then private companies like Purolator, UPS and other Independent Operators do the final mile as it is called. But Amazon was built from the ground up to provide this kind of service so it was already streamlined as far as property and employees are concerned. At the end of the day deliver services have High Maintenance costs, High Energy costs, High Wage costs and High Insurance costs. Those are prices that fluctuate and do they ever fluctuate... usually in the upward direction. The fact that online sales have increased means the demise of the bricks and mortar Retail Sales Model. Malls will close one by one and jobs will be lost, jobs that won`t come back! Which will in turn, turn up the pressure in the job market and put downward pressure on wages. As the cost of living increases this will in effect what people can afford to buy, food or a new gadget or car. Maybe even lose their home.
A home is one of the biggest generators of sales in an economy there is. When you are buying a home it is a continuous maintenance and upgrade project. Many of those services are hired and the money they earn is spent back into the economy. Driven by pride, or necessity the spending in that area is immense. There is nothing to be gained by society or the individual by losing their home. Creating a vast number of dispossessed, disenfranchised people with a hard on for Government and Society as a whole. We are truly being led by the blind!!! I also don`t think we realize just how connected we all are, one employee creating work for 4 other people through their purchases.. that is something to think about!