The Geography of E-Commerce

International audienceE-commerce has grown to enormous proportion, disrupting entire industries. Far from being virtual, e-commerce has a huge physical imprint and features a "mountainous" geography. Its uneven diffusion is driven by political, social and economic factors. All other things being equal, people buy more online in wealthy, well-connected countries, regions and communities. The case of China, by far the leading country for e-commerce and M-commerce, is unique: large parts of the country have "leapfrogged" from poverty straight into the digital economy. The geographic versatility of e-commerce is challenging public regulations: online retailers seek to avoid taxes on sales and income, and the growth of Web-based, customer-to-customer hospitality has got out of control in many cities, driving a backlash from local governments. Logistics is the cornerstone of e-commerce and the most visible part of its value chain. Major online retailers operate huge networks of warehouse and drive the growth of parcel express carriers such as FedEx, UPS, and DHL. Fast, reliable delivery is the critical part of the business, notably the final leg or 'last mile' to customers' homes. E-commerce is often made the scapegoat for the crisis of the retail industry which has materialized in store and shopping mall closures, and the bankruptcy of famous retail chains, notably in the U.S. However, experts and scholars consider that "physical" and virtual commerce are converging-rather than colliding-toward "omnichannel" models. In rural areas, e-commerce may drive the decline of small stores, but also play an inclusive role, connecting consumers and local producers to the global economy