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Trends and Impacts of Purchasing Goods in the Digital (e) Market

Shehan Lakshitha

In recent times, consumers in Sri Lanka have increasingly turned to digital marketplaces for purchasing goods. The decision to shop within a given society is influenced by socioeconomic capabilities and cultural motivations. However, this emerging trend has brought both positive impacts and challenges. Similar to many countries worldwide, Sri Lanka has also experienced rapid growth in digital marketplaces, reshaping traditional shopping habits.

Development of Digital Marketplaces and the Situation in Sri Lanka

According to the 2021 report by the Department of Census and Statistics, digital marketplace usage in Sri Lanka has significantly increased. This change was accelerated by the COVID-19 pandemic, as people sought safer and more convenient shopping methods. With over 60% of households having internet access and promotional discounts available monthly, online shopping has become increasingly popular. This trend is especially prevalent among middle-income families and younger generations, who are drawn to the efficiency and convenience of digital shopping.

Why Are People Turning to Digital Marketplaces?

An analysis of why people opt for digital marketplaces highlights economic benefits and cost-efficiency as key factors. Sri Lankan consumers are increasingly inclined to fulfill their needs at affordable prices through online platforms. Many e-commerce platforms offer products at lower prices compared to physical stores, making them appealing to cost-conscious buyers. These platforms also provide added convenience and ease of access, further driving their popularity.

Security and Convenience

Without the need for physical travel, consumers can enjoy a safer shopping experience. Digital marketplaces offer secure transaction methods and, in many cases, hassle-free delivery options. This accessible approach has encouraged even those initially hesitant about digital shopping to embrace the trend.

Consumer Behavior and General Impacts in Digital Marketplaces

Convenience and Efficiency

Digital marketplaces allow consumers to quickly browse, compare, and purchase goods. The time-saving feature has attracted busy individuals who often cannot visit physical stores, providing them with a seamless and efficient shopping experience.

Awareness of Risks

While digital shopping is convenient, risks such as fraud and privacy issues also arise. There is a growing need for enhanced digital security measures and consumer awareness. Instances where consumer data is exposed to risks have been reported in Sri Lanka, highlighting the need for better protection and caution in online transactions.

Impacts of Digital Marketplaces

Economic Impacts

According to the Central Bank report (Central Bank of Sri Lanka, 2021), the growth of digital marketplaces has positively contributed to economic development. However, it also presents challenges for small and medium enterprises (SMEs), which struggle to compete with large e-commerce platforms that offer lower prices and greater convenience.

Social Impacts

Sociologists argue that the shift to digital shopping can influence traditional consumer behaviors and trust-building. For consumers who are accustomed to in-person shopping, fully adopting digital purchasing behaviors can be challenging, and feelings of alienation or mistrust may arise from the online shopping experience.

Psychological Impacts

The convenience and freedom of online shopping can lead to impulsive purchases, which may affect individuals’ financial well-being and mental health. Studies indicate that consumers are spending more time on digital platforms, which may lead to overconsumption and stress.

Consumer Protection Trends and Current Evidence

As more people enter digital marketplaces, ensuring consumer protection has become a priority.

The rise of digital marketplaces in Sri Lanka has transformed shopping into a faster, more convenient, and, at times, more affordable experience. This shift has been fueled by greater internet access, economic incentives, and the challenges posed by the COVID-19 pandemic. However, while digital shopping offers many benefits, it also introduces new risks and challenges. Competitive pricing and convenience can be advantageous for consumers, but they create pressure for small and medium-sized enterprises (SMEs) to maintain their growth, which may pose a threat to their sustainability.

Socially, the shift away from traditional shopping can impact long-term consumer habits and interpersonal trust. Consumers who value personal interactions and relationship-building may feel disconnected from the impersonal nature of digital transactions. Additionally, the potential for impulsive buying in online shopping calls for greater awareness and self-regulation to address its psychological impact.

Considering these effects, the need for robust digital consumer protection and privacy regulations has become crucial. As digital markets continue to expand, both consumers and businesses need to exercise due diligence, ensuring a balance between convenience and security. As Sri Lanka navigates this digital landscape, fostering a secure marketplace will minimize risks and enable broader benefits, ultimately laying the foundation for a sustainable digital economy that contributes to the country’s development.

Shehan Lakshitha

The views and opinions expressed in this publication are those of the authors. They do not purport to reflect the opinions or views of the Sri Lanka Press Institute.

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