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BLOG - Automation and E-commerce: A Threat?

Automation and E-commerce: A Threat?

Automation and E-commerce a Threat

With the rising influence of technology, it is not a surprise to know that the technology is taking over many areas of the market. The creation of robots, for example, is one of the responsibilities for the high rate of automation and promises to have an even higher impact on the rate of retail employment. Furthermore, the fact that a newer generation is entering their "spending years", the automation and e-commerce are expected to grow even stronger.

First of all, keep in mind that e-commerce is every commercial transaction conducted online. Therefore, everything and anything bought through the internet can be labeled as e-commerce. Automation, on the other hand, is the technology that was created to monitor and control the production and delivery of products and services. While both of these words can be linked together, they differ in aspects but do work together to facilitate the life of the employer and the customer. However, on the other hand, the employee can be easily replaced with a more efficient tool that requires little to no expense.

Although these technologies are still new, they are already causing a significative disruption on the market and employment rates, and, believe it or not, it is only the beginning. The university's Oxford Martin Programme on Technology and Employment published a study in which researchers pointed out the high probability of the automation and e-commerce becoming, even more, stronger as younger customers are starting to enter their "spending years" and will assist the growth of these two new technologies. Furthermore, it can already be felt in more developed countries, such as Japan, where there was an increase of goods bought through the internet and mobile devices, from 27% in 2015 to 32% in 2016. Therefore, the e-commerce is steadily growing along with the influence and use of mobile devices and broadbands and is already putting approximately 6.1% of sales jobs and 5.1% of jobs in transportation at risk.

A report from March 2017 by PWC (PricewaterhouseCoopers) states that jobs in wholesale and retail were 44% at risk from automation, therefore, classifying the retail sector as the sector with the highest risk of automation amongst all sectors. Meanwhile, the report states that the replacement can happen in the US but is yet not cost effective, but it is likely to change through the years. Furthermore, it is predictable that the impact of the automation on American jobs will increase and, as President Obama previously predicted, the growth of the automation will overcome and conquer middle-class jobs. With that said, it is important to note that another study stated that the automation will most likely replace 47% of American jobs throughout the next two decades.

The growth of technology cannot be stopped and it will only grow stronger throughout the years. Although the technology can be quite efficient and helpful to the customer, it is causing troubles for the working class, who, in turn, can be replaced for more efficient machines. Despite being in its early years, the impact of the automation and the e-commerce can already be felt as it slowly reaches its true commercial potential.


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