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Author: Jean-François Houde Publisher: ISBN: Category : Electronic commerce Languages : en Pages : 72
Book Description
We examine the economies of density associated with the expansion of Amazon's distribution network from 2006 to 2018. We demonstrate that, in placing a fulfillment center in a new state, Amazon faces a trade-off between the revenue implications of exposing local customers to sales tax on their purchases and the cost savings from reducing the shipping distance to those customers. Using detailed data on online transactions, we estimate a model of demand for retail goods and show that consumers' online shopping is sensitive to sales taxes. We then use the demand estimates and the spatial distribution of consumers relative to Amazon's fulfillment centers to predict revenues and shipping distances under the observed fulfillment center roll-out and under counterfactual roll-outs over this time period. Using a moment inequalities approach, we infer the cost savings from being closer to customers that render the observed network roll-out optimal. We find that Amazon saves between $0.17 and $0.47 for every 100 mile reduction in the distance of shipping goods worth $30. In the context of its distribution network expansion, this estimate implies that Amazon has reduced its total shipping cost by over 50% and increased its profit margin by between 5 and 14% since 2006. Separately, we demonstrate that prices on Amazon have fallen by approximately 40% over the same period, suggesting that a significant share of the cost savings have been passed on to consumers.
Author: Jean-François Houde Publisher: ISBN: Category : Electronic commerce Languages : en Pages : 72
Book Description
We examine the economies of density associated with the expansion of Amazon's distribution network from 2006 to 2018. We demonstrate that, in placing a fulfillment center in a new state, Amazon faces a trade-off between the revenue implications of exposing local customers to sales tax on their purchases and the cost savings from reducing the shipping distance to those customers. Using detailed data on online transactions, we estimate a model of demand for retail goods and show that consumers' online shopping is sensitive to sales taxes. We then use the demand estimates and the spatial distribution of consumers relative to Amazon's fulfillment centers to predict revenues and shipping distances under the observed fulfillment center roll-out and under counterfactual roll-outs over this time period. Using a moment inequalities approach, we infer the cost savings from being closer to customers that render the observed network roll-out optimal. We find that Amazon saves between $0.17 and $0.47 for every 100 mile reduction in the distance of shipping goods worth $30. In the context of its distribution network expansion, this estimate implies that Amazon has reduced its total shipping cost by over 50% and increased its profit margin by between 5 and 14% since 2006. Separately, we demonstrate that prices on Amazon have fallen by approximately 40% over the same period, suggesting that a significant share of the cost savings have been passed on to consumers.
Author: Alberto Cavallo Publisher: International Monetary Fund ISBN: 1616359218 Category : Business & Economics Languages : en Pages : 19
Book Description
We study e-commerce across 47 economies and 26 industries during the COVID-19 pandemic using aggregated and anonymized transaction-level data from Mastercard, scaled to represent total consumer spending. The share of online transactions in total consumption increased more in economies with higher pre-pandemic e-commerce shares, exacerbating the digital divide across economies. Overall, the latest data suggest that these spikes in online spending shares are dissipating at the aggregate level, though there is variation across industries. In particular, the share of online spending in professional services and recreation has fallen below its pre-pandemic trend, but we observe a longer-lasting shift to digital in retail and restaurants.
Author: Jean-François Houde Publisher: ISBN: Category : Languages : en Pages : 0
Book Description
We quantify the distortionary effects of nexus tax laws on Amazon's distribution network investments between 1999 and 2018. We highlight the role of two features of the expansion of Amazon's network: densification of the network of distribution facilities and vertical integration into package sortation. Densification results in a reduction in the cost of shipping orders, but comes at the expense of higher facility operating costs in more expensive areas and lower scale economies of processing shipments. Nexus laws furthermore generate additional sales tax liabilities as the network grows. Combining data on household spending across online and offline retailers with detailed data on Amazon's distribution network, we quantify these trade-offs through a static model of demand and a dynamic model of investment. Our results suggest that Amazon's expansion led to significant shipping cost savings and facilitated the realization of aggregate economies of scale. We find that abolishing nexus tax laws in favor of a non-discriminatory tax policy would induce the company to decentralize its network, lowering its shipping costs. Non-discriminatory taxation would also entail lower revenue, however, as tax-inclusive prices would rise, resulting in a fall in profit overall. This drop and the decline in consumer welfare from higher taxes together fall short of the increases in tax revenue and rival profit, suggesting that the abolishment of nexus laws would lead to an increase in total welfare.
Author: Barbara Grabiwoda Publisher: Cambridge University Press ISBN: 1009117750 Category : Business & Economics Languages : en Pages : 115
Book Description
Transformations caused by increasing virtual connectivity reach all business touchpoints, but the surge towards digital technologies is not distributed evenly across European markets, with the Central & Eastern Europe (CEE) region showing the strongest diversity of digital adoption levels. This Element outlines the characteristics of CEE digital markets, along with an additional contextual layer investigating online consumer behaviors. In-depth analysis of the similarities and differences in the region will allow the pace of ongoing digitization to be traced. The authors' objective in delivering this Element is to analyze the opportunities presented by the digital economy in CEE and to provide an actionable outlook for the e-commerce potential within the region's markets. Observations are based on in-depth analysis of dependencies between globalization of consumer behaviors and ongoing barriers to digital adoption caused by both economic and geo-political limitations.
Author: Andrew Wyckoff Publisher: Org. for Economic Cooperation & Development ISBN: Category : Business & Economics Languages : en Pages : 180
Book Description
Electronic commerce has the potential to radically alter some economic activities and the surrounding social environment. It changes the business environment, accelerates changes under way, increases interactivity, encourages openness, and alters the notion of time.This book examines such issues as the potential for growth of electronic commerce, its impact on the efficiency of the economy, its effects on how business is organized, and on markets, on jobs, and on society. It points out that countries will dismantle barriers to global electronic commerce at different rates, and that this may raise competitive concerns. It also discusses the electronic commerce's impacts on the costs of owning a "store," carrying inventory, conducting sales, placing and processing orders, customer support, and product distribution.
Author: Jan Eeckhout Publisher: Princeton University Press ISBN: 0691224293 Category : Business & Economics Languages : en Pages : 352
Book Description
A pioneering account of the surging global tide of market power—and how it stifles workers around the world In an era of technological progress and easy communication, it might seem reasonable to assume that the world’s working people have never had it so good. But wages are stagnant and prices are rising, so that everything from a bottle of beer to a prosthetic hip costs more. Economist Jan Eeckhout shows how this is due to a small number of companies exploiting an unbridled rise in market power—the ability to set prices higher than they could in a properly functioning competitive marketplace. Drawing on his own groundbreaking research and telling the stories of common workers throughout, he demonstrates how market power has suffocated the world of work, and how, without better mechanisms to ensure competition, it could lead to disastrous market corrections and political turmoil. The Profit Paradox describes how, over the past forty years, a handful of companies have reaped most of the rewards of technological advancements—acquiring rivals, securing huge profits, and creating brutally unequal outcomes for workers. Instead of passing on the benefits of better technologies to consumers through lower prices, these “superstar” companies leverage new technologies to charge even higher prices. The consequences are already immense, from unnecessarily high prices for virtually everything, to fewer startups that can compete, to rising inequality and stagnating wages for most workers, to severely limited social mobility. A provocative investigation into how market power hurts average working people, The Profit Paradox also offers concrete solutions for fixing the problem and restoring a healthy economy.
Author: Yanhui Zhang Publisher: GRIN Verlag ISBN: 3638376834 Category : Business & Economics Languages : en Pages : 101
Book Description
Diploma Thesis from the year 2004 in the subject Business economics - Offline Marketing and Online Marketing, grade: 1,3, University of Northampton, language: English, abstract: CHAPTER ONE INTRODUCTION Information services and products today constitute one of the world’s largest economic sectors. Computers and the networks that connect them have become a dominant force in virtually all aspects of society throughout the industrialized world. Institutions and individuals alike are flocking to the Internet - particularly to the World Wide Web - in record numbers, making it the fastest-growing medium in human history (Baptista, 2000). First made available to the public in 1992, the Web is used today by 205 countries and regions and its user number is expanding at approximately 30 percent per year (OECD, 2002). Technological improvement as well as the declining prices for the access of this technology has led to the explosive growth of Internet during the last few years. The electronic commerce (e-commerce), as one of the most important applications of the Internet technology, is undoubtedly bringing countries together to create a global network economy with expectation of reducing transition costs, increasing market transparency and making business more efficient. However, e-commerce is unevenly diffused in different countries. New growth theory (Ohmae (1996); Solomon & Bamossy (2002) insists that national characteristics such as industry structure, information infrastructure, financial systems and national policies, influence technology diffusion and innovation outcomes unevenly. E-commerce via Internet is said to have no national borders, however, individuals and companies in different countries response differently to it. Hence, understanding adoption drivers and inhibitors of e-commerce diffusion is becoming increasingly important. [...]
Author: Akkucuk, Ulas Publisher: IGI Global ISBN: 1799846024 Category : Business & Economics Languages : en Pages : 409
Book Description
Many fields are beginning to implement developing practices that prove to be more efficient and environmentally friendly compared to traditional practices. This holds true for the realm of business, as organizations are redesigning their operations through the incorporation of sustainable methods. Research is needed on the specific techniques companies are using to promote efficiency and improved effectiveness using sustainability. Handbook of Research on Sustainable Supply Chain Management for the Global Economy is an essential reference source that discusses the incorporation of sustainability in various facets of business management. Featuring research on topics such as disruptive logistics, production planning, and renewable energy sources, this book is ideally designed for researchers, practitioners, students, managers, policymakers, academicians, economists, scholars, and educators seeking coverage on sustainable practices in supply chains to ensure a cleaner environment.
Author: Zeinab Karake-Shalhoub Publisher: Edward Elgar Publishing ISBN: 1847202993 Category : Business & Economics Languages : en Pages : 284
Book Description
Business managers in developing countries would find in this volume a solid background to e-commerce at large, and to its significance within a wider framework of a resource-based view of their business and of the national economic settings within which they operate. The book is of special importance to the academic community of Internet students, as well as for those interested in economic development, by providing a pioneering insight into the issue of e-commerce in developing countries which may emerge strongly in the upcoming years. Aharon Kellerman, Growth and Change Undoubtedly an important contribution. E-commerce is a technology which holds the possibility of levelling the global trading playing field. This book provides a necessary review of current issues in e-commerce in developing economies, and a useful collection of good practice and solid theory for scholars, policymakers and professionals. John Peters, Emerald Group Publishing Limited, UK This is a road map of some of the challenges governments and companies face, in terms of physical and human infrastructure, as countries wrestle with a rapidly changing commercial environment. As the virtual world conquers ever more of the material world, countries that adapt and adopt to a cyber reality will likely do better. If you are doing business or setting policy in a developing country, you want to understand and address the issues raised in this book. Juan Enriquez, CEO, Biotechonomy, US and author of The Untied States of America and As the Future Catches You The authors of this unique volume provide a timely and valuable perspective on how technology and the Internet revolution are changing business and spurring development across the world, especially in emerging countries. Utilizing a framework grounded in rigorous theory, they provide a fine-grained understanding of electronic commerce adoption processes by public and private sector entities in developing countries. In so doing, they consider how each exchange encounter is shaped by, and in turn shapes, relational characteristics that form the basis for growth and development. Using a resource-based view of economies, the authors hypothesize that differences in the adoption of electronic commerce technologies in developing economies can be attributed to a sense-and-respond capability of governments with respect to new technologies, which they term technological opportunism . One of their main objectives is to establish the distinctiveness of technology opportunities from related constructs, such as innovativeness, and show that it offers a significantly better explanation of technology adoption and diffusion than do existing constructs. The book examines a number of developing countries experiences with electronic government, bringing real life experience to the adoption of an e-government model by looking at the issue from strategic as well as operational perspectives. The volume s ground-breaking research and conclusions will be of great interest to professionals, researchers and students in the areas of e-commerce and economic development; government officials of developing and newly industrialized countries contemplating e-government initiatives; and information technology managers.
Author: Matheus Felipe Pereira de Souza Publisher: EdUFRR ISBN: 8582881738 Category : Business & Economics Languages : en Pages : 155
Book Description
The book entitled "The internationalization of e-commerce: a case study of the Alibaba group"has been written by the Brazilian researchers Matheus Felipe Pereira de Souza and Elói Martins Senhoras. It is the 31st didactic book of the "Communication & Public Policies Collection" which aims to stimulate the development of textbooks fulfilling bibliographical gaps. This book brings into light 3 mains discussions: International Business as a scientific field of study the internationalization process of e-commerce and, a case study of the Alibaba Group.
Author: Jean-François Houde
Author: Jean-François Houde
Author: Alberto Cavallo
Author: Jean-François Houde
Author: Barbara Grabiwoda
Author: Andrew Wyckoff
Author: Jan Eeckhout
Author: Yanhui Zhang
Author: Akkucuk, Ulas
Author: Zeinab Karake-Shalhoub
Author: Matheus Felipe Pereira de Souza