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Online and offline retailing: What we know and directions for future research

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  • Ratchford, Brian
  • Soysal, Gonca
  • Zentner, Alejandro
  • Gauri, Dinesh K.

Abstract

The fast-paced growth of e-commerce is rapidly changing consumers’ shopping habits and shaping the future of the retail industry. While online retailing has allowed companies to overcome geographic barriers to selling and helped them achieve operational efficiencies, offline retailers have struggled to compete with online retailers, and many retailers have chosen to operate both online and offline. This paper presents a review of the literature on the interaction between e-commerce and offline retailing, highlighting empirical findings and generalizable insights, and discussing their managerial implications. Our review includes studies published in more than 50 different academic journals spanning various disciplines from the inception of the internet to present. We organize our paper around three main research questions. First, what is the relationship between online and offline retail channels including competition and complementarity between online and offline sellers as well as online and offline channels of an omnichannel retailer? Under this question we also try to understand the impact of e-commerce on market structure and what factors impact the intensity of competition /complementarity. Second, what is the impact of e-commerce on consumer behavior? We specifically investigate how e-commerce has impacted consumer search, its implications for price dispersion, and user generated content. Third, how has e-commerce impacted retailers’ key managerial decisions? The key research questions under this heading include: (i) What is the impact of big data on retailing? (ii) What is the impact of digitization on retailer outcomes? (iii) What is the impact of e-commerce on sales concentration? (iv) What is the impact of e-commerce and platforms on pricing? And (v) How should retailers manage product returns across online and offline channels? Under each section, we also develop detailed recommendations for future research which we hope will inspire continued interest in this domain.

Suggested Citation

  • Ratchford, Brian & Soysal, Gonca & Zentner, Alejandro & Gauri, Dinesh K., 2022. "Online and offline retailing: What we know and directions for future research," Journal of Retailing, Elsevier, vol. 98(1), pages 152-177.
    • Handle: RePEc:eee:jouret:v:98:y:2022:i:1:p:152-177
    DOI: 10.1016/j.jretai.2022.02.007
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    2. Myriam Quinones & Ana M. Díaz-Martín & Mónica Gómez-Suárez, 2023. "Retail technologies that enhance the customer experience: a practitioner-centred approach," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-8, December.
    3. Liu, Jiqiong & Yuan, Rui & Feng, Shuai, 2023. "Whether to offer return-freight insurance or open a physical showroom: A strategic analysis of an online retailer’s decisions," Journal of Retailing and Consumer Services, Elsevier, vol. 75(C).
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    5. Danni Zhang & Regina Frei & Gary Wills & Enrico Gerding & Steffen Bayer & Prince Kwame Senyo, 2023. "Strategies and practices to reduce the ecological impact of product returns: An environmental sustainability framework for multichannel retail," Business Strategy and the Environment, Wiley Blackwell, vol. 32(7), pages 4636-4661, November.
    6. Nibha Bharti & Sugandha Huria & Ashley Jose & Kanika Pathania, 2022. "E-Commerce, and the Indian Retail and Manufacturing Sectors - An Empirical Analysis with a Special Focus on Organised Sector MSMEs," Working Papers 2263, Indian Institute of Foreign Trade.
    7. K. E. Aksenov, 2023. "Impact of Digital Transformation on the Spatial Organization of Nonfood Retail in a Russian City," Regional Research of Russia, Springer, vol. 13(3), pages 524-533, September.
    8. Kiczmachowska Ewa E. & de Pourbaix Paweł & Jemielniak Dariusz, 2023. "Price Differentiation in Online and Offline Retail: An Empirical Study of Current Practices," Marketing of Scientific and Research Organizations, Sciendo, vol. 28(2), pages 1-16, June.
    9. Sarkar, Mitali & Dey, Bikash Koli & Ganguly, Baishakhi & Saxena, Neha & Yadav, Dharmendra & Sarkar, Biswajit, 2023. "The impact of information sharing and bullwhip effects on improving consumer services in dual-channel retailing," Journal of Retailing and Consumer Services, Elsevier, vol. 73(C).

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