Online businesses have given a great boost to the economy. One of the main causes is that these businesses have a very low startup cost as compared to physical retail stores. One does not need to have a huge investment and maintain stocks before starting the business, which is often a major deterrent for a lot of people.
Great Value to the Customers
The economy of any country is dependent on the frequency of money exchange; the faster the frequency, the higher the opportunities and value of money. An online grocery store is no exception. These stores have the potential to provide great value to the customers. Since the startup cost is very less compared to a physical store, there is no need to maintain initial stock or spend anything on physical marketing and decoration of the store. This contributes to a substantial portion of any physical store’s expense or investment.
Virtual Employment Opportunities
Grocery store online can have a very positive impact on the economy of a country. That is because it is the business that helps in the running and growth of the economy. It creates employment for a diverse group of skilled people, such as software developers, web developers, designers, and marketers, etc. These are the people who have the potential to make something big and innovative if they are given the right type of opportunities.
Low Business Cost
Another positive effect of online grocery store on the economy is a low business cost. These stores are virtually present everywhere, and so their cost of running the business is very low as compared to big retail outlets where they have to pay for the cashiers, staff, cleaners, movers, and managers. A lot of these online businesses eventually pass on this benefit of incurring less cost to the consumers. This strategy makes the online grocery store much more competitive as compared to the local physical stores and becomes cost-effective for the consumers as well.
In an economy such as Pakistan’s, where a good majority of the people belong to a lower or middle class, any additional savings and less expenditure would benefit them more. An economic concept tells us that people of lower-income groups spend 90% of their additional income. This means that if a consumer is able to save more, in return, he would be spending that saved amount on different products, which would again be a boost for the economy.
To conclude, the effect of online grocery stores on the economy is imperative. Online shopping opens new perspectives for the people, spreads awareness, reduces the time spent on traveling, and thus people are able to either work more or use their time to relax. Online stores provide a great opportunity for different niche businesses such as digital marketing, social media campaigns, and allied and complementary services such as packaging and delivery. It also plays a very important role in the budget management of the people, and they are able to save more and eventually spend more of their disposable income.
