The impact of e-commerce on traditional markets in the context of global digitalization

Abstract

The rapid development of e-commerce amidst global digitalization of the economy significantly impacts the functioning of traditional markets, making the analysis of this interaction and the assessment of e-commerce development prospects a relevant task for contemporary economic science. The purpose of the study is to analyze the impact of e-commerce on the functioning of traditional markets amidst global digitalization of the economy and to assess its development prospects in Ukraine. To achieve this goal, a set of methods was applied, including systemic analysis to evaluate the interrelationships between e-commerce and traditional markets, comparative analysis to examine trends in global and Ukrainian markets, generalization of literary sources and statistical data to systematize development factors, and graphical representation of results for a clear illustration of dynamics. Results. The study findings indicate that e-commerce drives the transformation of traditional markets by increasing the share of online sales, which leads to a reduction of the offline segment and changes in the competitive environment. Key factors contributing to the development of e-commerce include the proliferation of information and communication technologies, the growing number of internet users, the improvement of electronic payment systems, the influence of social media, and global challenges such as the pandemic. Changes in consumer behavior were identified, manifesting in heightened demands for convenience, accessibility of services, and quality of service. The economic consequences for traditional markets are dual in nature: on the one hand, e-commerce facilitates market expansion, stimulates innovations in logistics and marketing, and fosters the development of new business models; on the other hand, it poses challenges related to job cuts and pressure on profitability. Conclusions. In Ukraine, e-commerce plays a crucial role in ensuring business resilience during wartime, although its development is constrained by infrastructural limitations and uneven levels of digital skills among the population. The prospects for e-commerce development in Ukraine are linked to the integration of modern technologies, the enhancement of logistics systems, and integration into international digital markets. Traditional retail requires adaptation to the conditions of the digital economy through the implementation of omnichannel strategies, as well as further study of the interaction between online and offline segments to ensure their harmonious coexistence. The study results are significant for developing business strategies in the context of digitalization and can be utilized to shape state policies in the field of the digital economy.