Recently, the Indonesian government announced a ban on e-commerce activities in the country, which attracted widespread attention. Not only Indonesia, but also other countries are taking measures to restrict the development of e-commerce. Why is that? The fundamental problem is that every government, they are very concerned about the employment rate of their own country, will not allow the proliferation of e-commerce.
First, e-commerce may form a monopoly on traffic. In the Internet era, e-commerce can quickly gather a large number of users and market share with its unique network advantages. This advantage makes it possible for some e-commerce companies to restrict the entry of other competitors by controlling traffic, thus forming a monopoly. Once e-commerce companies form a monopoly, they may use this advantage to restrict competition, increase prices, reduce service quality, etc., and ultimately harm the interests of consumers.
Second, e-commerce has had a serious impact on offline physical stores. The rise of e-commerce has made it easy for consumers to buy goods online without having to shop in a physical store. This has led to a large number of physical store closures and an increase in job losses. Especially during the pandemic, many brick-and-mortar stores closed because they could not withstand the impact of the pandemic, which further exacerbated the pressure on employment issues.
Our favorite thing in the past was to go to the crowded places at night to try some snacks, choose our favorite daily necessities, and so on. However, because of the rapid development of the Internet, e-commerce began to catch fire. This has caused many physical stores to close or disappear, once again indicating that e-commerce has seriously affected employment.
In addition, the high cost of e-commerce traffic is also one of the main reasons why the government restricts its development. Some e-commerce platforms make profits by charging high traffic fees, which often account for more than 30% of merchants' sales. Young people buy goods to e-commerce to bring goods, and the traffic fee is extremely expensive, and the traffic fee is as high as 30%. Even if you sell something for 100 yuan, more than 30 of them are for traffic. Therefore, his restrictions on the economy and the resources for employment obviously affect the stability of society. This makes it difficult for many small businesses to grow and thrive because they can't get enough traffic support on e-commerce platforms.
So we can see that e-commerce has its shortcomings, and the global vigilance against e-commerce is increasing. For China, the government has also taken some measures to restrict the development of e-commerce. For example, the Chinese government has restricted the listing of certain internet platforms and regulated the e-commerce market. At least 89 platforms shut down last year as the industry was hit by stiff competition and weak consumer spending. One of the most notable e-commerce platforms that were shut down was eBay. These measures aim to protect the ecology of the real economy and avoid the major impact on the real economy caused by the oversize of Internet unicorn enterprises.
In short, although e-commerce has brought convenience and diversity to consumers, there are also some problems. The government needs to take measures to balance the development of e-commerce with the development of the real economy, ensuring fair competition in the market and the protection of consumer rights.