International Review of Business, Trade, and Economics
Impact of Online Shopping on Local Small Businesses
Abstract
Nixon Chakma
The rapid expansion of e-commerce and digital technology has significantly transformed consumer buying behavior in India. Online shopping platforms such as Amazon, Flipkart, Zepto, and Blinkit have become increasingly popular due to their lower prices, convenience, wider product variety, home delivery, and attractive discount offers. While these developments provide benefits to consumers, they have created serious challenges for local small businesses that depend mainly on regular neighbourhood customers. This study examines the impact of online shopping on local small businesses in Pune, with special reference to the Bhopodi and Aundh areas. The study is based on both primary and secondary data. Primary data were collected through structured questionnaires and informal interviews with 25 respondents, including 20 customers and 5 local shopkeepers. Secondary data were collected from books, journals, newspapers, government reports, and published studies related to e-commerce and retail business. A descriptive research design and convenience sampling method were used to analyse customer preferences, changes in sales, and the difficulties faced by small retailers. The findings of the study reveal that a large majority of customers prefer online shopping over local shopping because of lower prices, discounts, home delivery, product variety, and easy comparison facilities. The study also shows that clothing shops, mobile accessory shops, stationery shops, and grocery stores are among the most affected businesses. Most local shopkeepers reported a decline in customer footfall and sales due to the growing popularity of online shopping. Many small retailers find it difficult to compete with large e-commerce companies because they cannot provide similar discounts, return policies, or delivery services. However, the study also indicates that online shopping has encouraged some local businesses to adopt digital methods such as UPI payments, social media marketing, WhatsApp orders, and home delivery services. Retailers who make use of such digital tools are more likely to survive and improve their business performance. The study concludes that although online shopping has negatively affected local small businesses in Pune, these effects can be reduced through government support, digital training, financial assistance, and the adoption of modern business practices. Strengthening the digital capabilities of local retailers can help them remain competitive in the changing retail environment.