Impact of E-Commerce on the Urban Landscape

Impact of E-Commerce on the Urban Landscape

Sotheeswari Somasundram (Taylor's University, Malaysia)
Copyright: © 2020 |Pages: 12
DOI: 10.4018/978-1-5225-9697-4.ch003

Abstract

Consumers in large cities are projected to contribute 81% to global consumption in 2030 with B2C e-commerce sales growth projected to increase globally by 24% in 2020. The inquiry of the present study is to understand the impact of this growth on the urban landscape. Three key areas influenced by e-commerce which in turn impact the urban landscape, city logistics, warehousing, and retail experience. Rising home deliveries impact city logistics where delivery trucks contribute to traffic congestion and environmental hazards. E-commerce influences locational demand for warehouses differently, depending on the section of the logistic chain. The positive gains include reduced damage to road infrastructures and higher valuation of logistics real estate in urban areas. The final area, retail experience, influences the sustainability of malls in urban areas. Malls in urban centers could remain relevant by reconfiguring retail spaces to accommodate temporary guide stores and pop-up stores instead of anchor tenants.
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Urban Landscape And E-Commerce

The analysis on the interaction between e-commerce and the urban landscape is discussed from the perspective of city logistics, warehousing and retail experience.

Key Terms in this Chapter

Anchor Tenants: The leading or main tenant in a shopping mall, often a well-known departmental store or retail chain.

First Mile Delivery: Delivery of products from retailers’ warehouses to distribution centers.

Last Mile Delivery: Delivery of a product from distribution centers to the doorstep of final consumers.

Guideshop: A physical store where customers can experience the products before purchasing it. The physical store only showcases the product for customer experience but do not sell any physical items. Customers place orders in the physical store and it will be delivered to their homes.

Autonomous Vehicles: A vehicle capable of self-directed navigation by sensing its environment with limited or no human input.

Millennials: Those born roughly between 1981 and 1997.

Urbanization: A process where an increasing percentage of the population live in cities.

Social Commerce: A subset of e-commerce that employs social media as a tool for product reviews and recommendations. The social networks utilized in the context of e-commerce transactions.

Pop-Up Store: A retail store is normally setup for a short duration in malls or shopping centers to promote and/or sell products that is currently trending the market or to sell seasonal products.

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