Currently many in the countries number of online shopping platforms are showing dramatic increase, and this is causing many of the local shops to close. This causes main problems, and most significant of them all is increase in prices. However, a simple solution for this problem is by giving full authority of the online platforms to the government.
Increase in the number of online shops and decrease in the number of local shops can cause many problems for the community. Main problem this issue can arise is the increase of prices. As most of the online shops get extra fees, and sellers who try to avoid them by making their own online platform fail. Because in most of the countries online shopping is monopolized by one or two big platforms. For example, in the USA if a seller wants to publish his/her product online, Amazons get a percentage from each sold item and may try to avoid them by creating their own online shops but majority of them fail because they are unable to compete with other big platforms. As a result sellers must increase the price of their products to stabilize their income.
In the case of big platforms, they have many stakeholders and each of them wants to get extra profit from the platform. This is why many platforms artificially increase their fee. Not many countries have policies made about online shops. But the most optimal way of solving this issue is by creating one central platform which is run by the government. In result platform fees would decrease dramatically as governments don’t benefit from increasing the prices, and if prices did increase it would hurt the economy. For example in Turkiye online shopping is strictly regulated by the Turkish government, so the government makes sure that prices don’t fluctuate in order to keep the economy of the country at the same level.
In conclusion, the main problem this issue causes is artificial increase in prices and the most optimal way of solving this problem is by giving full platform control to the government.