With the development of the online-shopping industry, small-scale retailers are ejected from the market by high competition. This leads to the economic and environmental issues, such as rising carbon emissions and financial crisis of the offline shop owners. To overcome them, simultaneous measures taken by the government and citizens are required.
Virtual stores are rapidly conquering the market by offering lower costs and better convenience, thereby making small-scale businesses unprofitable. The replacement of local vendors by digital marketplaces results in the rise of CO2 released in the air during the transportation process. These emissions contribute to the air and water pollution. According to research, the amount of fossil-fuels release in the world have increased by approximately 35% over the last 50 years. Moreover, independent boutique owners who were forced to close their businesse are left without a sustainable source of income. The social crisis driven by rising unemployment and income shortage severely damages local communities.
One possible solution to the ecological aspect of the problem is to impose extra taxes on long-distance transportation of products. The collected finances can be allocated to funding eco-projects or to supporting local shop holders. Another viable measure stems from the enthusiasm of the ordinary citizens. Should people prefer the produce of the local vendors, it would improve their margin. Such an approach has proven effective in Spain, where a community supported their local clothes boutique by boycotting any other producer.
In conclusion, the replacement of neighborhood stores by online-based companies deteriorates the environment and affects the financial stability of small-scale businessmen. These shortcomings can be alleviated by introducing additional transportation taxes and creating the demand for locally produced goods.