The e-commerce battle is not yet won!

The Difficulties that small businesses currently face versus Internet giants:

Small businesses are the backbone of any economy, and with the global economic impact of COVID-19, protecting them is more crucial than ever. Since the first case of the pandemic was discovered, the various governments have implemented a series of health and economic measures to reduce the impact of the disease. Small businesses, or, as we say, small and medium-sized enterprises (SMEs), have been growing steadily for the past decade and have been recognized by the government as a source of economic growth and job creation. However, due to the fury of the coronavirus pandemic, most of these businesses would struggle to survive in the current climate.

There is little doubt that the COVID-19 pandemic has exacerbated the problems facing small businesses around the world, regardless of size, location or funding. The majority of financial studies focus on the effects of the crisis on small businesses, namely the lack of liquidity and sources of financing. During a crisis, effective organizations adopt a strategy that is both market-driven and entrepreneurial, according to strategy-driven research. The value of a crisis perspective has been recognized in small business studies.

The impact of Internet Giants:

Amazon seemed to be everywhere. This e-commerce juggernaut delivers our groceries, runs our websites, and sells almost everything in two days or less. Jeff Bezos, the company's creator, is a hard-working executive, small business lender, software developer, rocket scientist, and Rockerfeller-style business magnate. Additionally, he has positioned his company for success in what seems like hundreds of industries. Amazon has basically transformed everything, even small businesses.

A quick Google search of Amazon's influence on small business turns up countless articles applauding the glory of Jeff Bezos or railing against a company that crushes the aspirations and ambitions of every mom-and-pop shop in America. This division, as usual in our time, is the result of strong opinions rather than the real truth of the matter, which is that all Amazon is doing is changing the way small business owners sell their products.

Google is more than just a search engine, and Amazon is much more than just an e-commerce site. This in itself blurs the concept of competitiveness. Fully competing with Facebook's burgeoning coalition of megaservices is unrealistic; the most a competitor can do is develop some form of service that could steal time or advertising revenue. In 2018, during his testimony before two Senate committees, Marck Zuckerberg was asked about his company's main competition. He was hesitant to name one, instead referring to "other technology platforms" such as Google, Apple, Amazon and Microsoft.

The Push Towards E-commerce:

Amazon released a Small Business Impact Study earlier this year, indicating that SMBs manufacture half of the items sold on Amazon. The company has also created Amazon Storefronts, a separate part of the website where small and medium businesses can display their items and establish their brand. This may sound like an opportunity for small and medium-sized businesses, but in reality it makes Amazon even more powerful and controlling.

The general economy will eventually recover, more or less. People will have to buy goods and pay for services. However, the coronavirus will fundamentally restructure Main streets around the world, accelerating long-term changes, i.e. chain stores will replace mom-and-pop stores, some storefronts will remain vacant, and revenue that was previously allocated to local businesses will be redirected to Amazon and Walmart. The pandemic will amplify and intensify the two fundamental economic trends of our time, namely, Consolidation and Inequality.

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