A Study On The Impact of E-Commerce On Traditional Retail Marketing
A Study On The Impact of E-Commerce On Traditional Retail Marketing
Abstract- This research paper aims to explore the such as targeted advertising, loyalty programs, and
impact of e-commerce on traditional retail marketing experiential retailing, to differentiate themselves and
in the Indian context analyzing how the rapid growth create unique value propositions, and the regulatory
of e-commerce has transformed the retail landscape, environment playing a crucial role in shaping the
influenced consumer behavior, and posed significant growth and dynamics of e-commerce and traditional
challenges and opportunities for traditional brick- retail, with government policies on FDI in retail, data
and-mortar retailers, as the proliferation of internet protection, and consumer rights impacting the
usage, the advent of smartphones, and the strategies of both online and offline players, and the
development of robust online payment systems have paper concludes by discussing the future
facilitated the expansion of e-commerce platforms implications of e-commerce growth for traditional
like Flipkart, Amazon India, and Snapdeal, leading retail in India, suggesting that retailers must
to a shift in consumer preferences towards online embrace digital transformation, invest in technology,
shopping due to the convenience, wider product and continuously innovate to stay competitive in a
selection, competitive pricing, and personalized rapidly changing market, offering valuable insights
shopping experiences offered by these platforms, for academics, practitioners, and policymakers
while traditional retailers have struggled to adapt to interested in the interplay between e-commerce and
this digital disruption, facing declining foot traffic, traditional retail marketing, ultimately contributing
reduced sales, and the need to innovate their to the broader discourse on retail transformation in
marketing strategies to retain and attract customers, emerging markets and highlighting the need for a
with theoretical frameworks such as the technology balanced approach that leverages the strengths of
acceptance model (TAM) and the diffusion of both online and offline channels to meet evolving
innovations theory providing insights into the factors consumer expectations and achieve sustainable
driving consumer adoption of e-commerce, including growth.
perceived ease of use, perceived usefulness, and
social influence, as well as the resistance to change Indexed Terms- E-commerce, Traditional retail
and the challenges of integrating online and offline marketing, Consumer behavior, Digital
channels, and the retail mix elements such as transformation, Omnichannel strategies, Retail
product, price, place, promotion, and people being landscape, Technology acceptance model (TAM)
significantly affected, necessitating traditional
retailers to rethink their value propositions, enhance I. INTRODUCTION
their digital presence, and implement omnichannel
strategies to create a seamless shopping experience, This research paper aims to explore the impact of e-
while also leveraging data analytics to gain insights commerce on traditional retail marketing in the Indian
into customer preferences and personalize their context examining how the exponential growth of e-
marketing efforts, with studies indicating that commerce, fueled by increased internet penetration,
retailers who successfully blend online and offline smartphone adoption, and advancements in online
strategies can achieve higher customer engagement payment systems, has significantly transformed the
and loyalty, as the competitive landscape evolves with retail landscape, influenced consumer behavior, and
new entrants and the growing influence of social posed substantial challenges and opportunities for
media and digital marketing, compelling traditional traditional brick-and-mortar retailers, as evidenced by
retailers to adopt innovative marketing techniques, the rise of major e-commerce platforms such as
Flipkart, Amazon India, and Snapdeal, which have expectations to thrive in a rapidly evolving retail
capitalized on the burgeoning online shopping trend environment, offering valuable insights for academics,
driven by the convenience, wide product selection, practitioners, and policymakers interested in the
competitive pricing, and personalized shopping interplay between e-commerce and traditional retail
experiences they offer, leading to a shift in consumer marketing, ultimately contributing to the broader
preferences and buying patterns away from physical discourse on retail transformation in emerging markets
stores, creating a pressing need for traditional retailers and highlighting the need for a balanced approach that
to adapt and innovate their marketing strategies to leverages the strengths of both online and offline
remain competitive and relevant in an increasingly channels to meet the evolving demands of consumers
digital marketplace, with theoretical frameworks such and achieve sustainable growth.
as the technology acceptance model (TAM) and the
diffusion of innovations theory providing valuable II. STATEMENT OF THE RESEARCH
insights into the factors driving consumer adoption of PROBLEM
e-commerce, including perceived ease of use,
perceived usefulness, and social influence, as well as The research problem addressed in this study on the
the resistance to change and the challenges of impact of e-commerce on traditional retail marketing
integrating online and offline channels, highlighting in the Indian context certainly involves examining
the critical importance of a seamless omnichannel how the rapid expansion of e-commerce, driven by
strategy for traditional retailers, which involves increased internet penetration, widespread smartphone
harmonizing the retail mix elements of product, price, adoption, and advancements in digital payment
place, promotion, and people to enhance the customer systems, has fundamentally transformed consumer
experience across all touchpoints, while leveraging behavior and retail dynamics, leading to significant
data analytics and digital marketing techniques to gain challenges for traditional brick-and-mortar retailers,
deeper insights into customer preferences and who face declining foot traffic and sales due to the
personalize marketing efforts, as studies have shown convenience, broader product selection, competitive
that retailers who successfully implement an pricing, and personalized experiences offered by
omnichannel approach can achieve higher levels of online platforms like Flipkart, Amazon India, and
customer engagement, loyalty, and overall satisfaction Snapdeal, necessitating an investigation into the ways
(Verhoef, Kannan, & Inman, 2015), with the traditional retailers can adapt their marketing
competitive landscape further evolving as new digital strategies to remain competitive, including the
entrants and the growing influence of social media adoption of omnichannel approaches, leveraging
disrupt traditional retail models, compelling brick- digital technologies for customer insights and
and-mortar stores to adopt innovative marketing personalized marketing, and enhancing in-store
techniques such as targeted advertising, loyalty experiences, while also exploring the theoretical
programs, and experiential retailing to differentiate frameworks such as the technology acceptance model
themselves and create unique value propositions (TAM) and the diffusion of innovations theory to
(Rigby, 2011), and the regulatory environment also understand the factors influencing consumer adoption
playing a pivotal role in shaping the growth and of e-commerce and resistance to change, alongside the
dynamics of e-commerce and traditional retail, with need to navigate regulatory complexities in the
government policies on foreign direct investment evolving retail landscape, thus providing valuable
(FDI) in retail, data protection, and consumer rights insights for academics, practitioners, and
impacting the strategies of both online and offline policymakers on the strategic and operational
players (Mukherjee, 2013), underscoring the necessity adjustments required for traditional retailers to thrive
for traditional retailers to navigate these regulatory in an increasingly digital marketplace, with a focus on
complexities while embracing digital transformation integrating online and offline channels to create a
to sustain their market position, as the future seamless shopping experience that meets the evolving
implications of e-commerce growth suggest that demands of consumers and achieves sustainable
retailers must continuously innovate, invest in growth.
technology, and adapt to changing consumer
perceived ease of use, perceived usefulness, and social VI. MAJOR OBJECTIVES OF THE RESEARCH
influence, as well as the resistance to change and the STUDY
challenges of integrating online and offline channels
(Davis, 1989; Rogers, 2003), and empirical evidence 1. To examine how the rise of e-commerce platforms
from studies like Richa (2012) and Bharadwaj et al. has influenced consumer shopping habits,
(2013) demonstrating the critical role of digital preferences, and expectations.
transformation in enhancing customer engagement, 2. To assess the extent to which e-commerce has
personalizing marketing efforts, and creating seamless affected sales performance and customer visits in
shopping experiences, while also emphasizing the brick-and-mortar stores.
importance of leveraging data analytics to gain deeper 3. To explore how traditional retailers can integrate
insights into customer preferences and behavior, with online and offline channels to create a seamless
research by Verhoef, Kannan, and Inman (2015) shopping experience.
indicating that retailers who successfully implement 4. To analyze how digital tools and data analytics can
an omnichannel approach can achieve higher levels of be used to better understand and meet customer
customer satisfaction, loyalty, and overall needs.
performance, further supported by Rigby (2011) who
argues that the future of retail lies in the integration of • Rise of e-commerce platforms has influenced
digital and physical channels to create a cohesive and consumer shopping habits, preferences, and
engaging customer experience, as the competitive expectations:
landscape continues to evolve with new digital The rise of e-commerce platforms has significantly
entrants and the growing influence of social media and influenced consumer shopping habits, preferences,
digital marketing, compelling traditional retailers to and expectations as evidenced by the rapid adoption of
adopt innovative marketing techniques such as online shopping due to increased internet penetration,
targeted advertising, loyalty programs, and smartphone usage, and advancements in digital
experiential retailing to differentiate themselves and payment systems, which have collectively contributed
create unique value propositions, while also to a shift from traditional brick-and-mortar retail to
navigating regulatory complexities, as highlighted by online marketplaces, driven by the convenience of
Mukherjee (2013), who underscores the impact of shopping from home, access to a wider variety of
government policies on foreign direct investment products, competitive pricing, and personalized
(FDI) in retail, data protection, and consumer rights on shopping experiences offered by platforms like
the strategies of both online and offline players, and Flipkart, Amazon India, and Snapdeal, with theoretical
the broader implications of these transformations for frameworks such as the technology acceptance model
the Indian retail sector, as discussed by Singh and (TAM) and the diffusion of innovations theory
Sailo (2013), who examine the evolving retail providing insights into the factors driving this
dynamics and the need for traditional retailers to consumer behavior change, including perceived ease
embrace digital transformation and continuous of use, perceived usefulness, and social influence
innovation to sustain their market position and achieve (Davis, 1989; Rogers, 2003), while empirical studies
long-term growth, ultimately contributing to the like Richa (2012) highlight demographic factors such
broader discourse on retail transformation in emerging as age, income, and education level as significant
markets and highlighting the need for a balanced determinants of online shopping adoption, and
approach that leverages the strengths of both online Bharadwaj et al. (2013) emphasize the role of digital
and offline channels to meet the evolving demands of business strategies in enhancing consumer
consumers and achieve sustainable growth, providing engagement and satisfaction, suggesting that
valuable insights for academics, practitioners, and traditional retailers need to adapt by integrating digital
policymakers interested in the interplay between e- technologies and developing omnichannel strategies to
commerce and traditional retail marketing in the meet the evolving expectations of consumers, who
rapidly evolving Indian retail landscape. now demand seamless and convenient shopping
experiences across multiple channels, with research by
Verhoef, Kannan, and Inman (2015) indicating that
retailers who successfully implement such strategies shopping due to increased internet penetration,
can achieve higher customer loyalty and competitive widespread smartphone usage, and advancements in
advantage, ultimately contributing to a broader digital payment systems, as highlighted by Richa
understanding of how e-commerce is reshaping the (2012), who emphasizes that demographic factors
retail landscape in India and highlighting the necessity such as age, income, and education level play a crucial
for traditional retailers to innovate and adapt their role in the adoption of online shopping, particularly
marketing approaches to stay relevant in a digitally- among younger and more tech-savvy consumers,
driven marketplace. The rise of e-commerce platforms while Chatterjee (2013) points out that this trend has
is driven by increased internet penetration, widespread forced brick-and-mortar stores to innovate their
smartphone usage, and advancements in digital marketing strategies and enhance in-store experiences
payment systems, which have collectively shifted to attract and retain customers, with many traditional
consumer behavior from traditional brick-and-mortar retailers adopting digital technologies and developing
retail to online shopping due to the convenience, omnichannel strategies to compete effectively, as
broader product selection, competitive pricing, and illustrated by the case of Shoppers Stop, which
personalized experiences offered by platforms like integrated its online and offline channels to provide a
Flipkart, Amazon India, and Snapdeal, as supported by seamless shopping experience and personalized
the technology acceptance model (TAM) and services, thereby mitigating some of the negative
diffusion of innovations theory, which highlight impacts of e-commerce on its sales performance and
perceived ease of use, perceived usefulness, and social customer visits, and Mukherjee (2013) discusses how
influence as key factors driving this shift (Davis, 1989; government policies on foreign direct investment
Rogers, 2003), while empirical studies such as Richa (FDI) in retail, data protection, and consumer rights
(2012) emphasize demographic factors like age, have also influenced the competitive dynamics
income, and education as significant determinants of between e-commerce platforms and traditional
online shopping adoption, and Bharadwaj et al. (2013) retailers, creating an environment where traditional
stress the role of digital business strategies in stores must continuously adapt to stay relevant, while
enhancing consumer engagement and satisfaction, Bharadwaj et al. (2013) highlight the importance of
illustrating that traditional retailers must adapt by digital business strategies in enhancing customer
integrating digital technologies and developing engagement and satisfaction, suggesting that
omnichannel strategies to meet evolving consumer traditional retailers who leverage data analytics to gain
expectations for seamless, convenient shopping deeper insights into customer preferences and
experiences across multiple channels, as evidenced by behavior can personalize their marketing efforts and
Verhoef, Kannan, and Inman (2015), who found that create more compelling value propositions, further
retailers implementing these strategies achieved supported by Verhoef, Kannan, and Inman (2015),
higher customer loyalty and competitive advantage. who found that retailers implementing effective
omnichannel strategies, which integrate online and
• Extent to which e-commerce has affected sales offline touchpoints, achieve higher levels of customer
performance and customer visits in brick-and- loyalty, engagement, and overall performance, thereby
mortar stores: underscoring the necessity for traditional retailers to
The extent to which e-commerce has affected sales embrace digital transformation and continuous
performance and customer visits in brick-and-mortar innovation to compete in an increasingly digital
stores in the Indian context as the rapid expansion of marketplace, as empirical evidence from studies like
online shopping platforms like Flipkart, Amazon Singh and Sailo (2013) indicates that consumer
India, and Snapdeal has led to significant declines in behavior is increasingly influenced by digital
foot traffic and sales for traditional retailers, driven by interactions, social media, and online reviews, which
the convenience, broader product selection, shape their expectations and shopping preferences,
competitive pricing, and personalized shopping ultimately contributing to a broader understanding of
experiences offered by these e-commerce giants, with how e-commerce is reshaping the retail landscape in
empirical studies indicating a marked shift in India and highlighting the critical need for traditional
consumer behavior and preferences towards online retailers to innovate and adapt their marketing
approaches to sustain and improve their sales crucial role, as highlighted by Mukherjee (2013), who
performance and customer visits in the face of discusses the impact of government policies on foreign
growing e-commerce competition, providing valuable direct investment (FDI) in retail, data protection, and
insights for academics, practitioners, and consumer rights, which necessitates that traditional
policymakers interested in the interplay between e- retailers navigate these complexities while embracing
commerce and traditional retail marketing in the digital transformation, ensuring compliance and
rapidly evolving Indian retail environment. leveraging policy changes to enhance their market
position, and Singh and Sailo (2013) underscore the
• Traditional retailers can integrate online and need for continuous innovation and adaptation to meet
offline channels to create a seamless shopping the dynamic expectations of consumers influenced by
experience: digital interactions, social media, and online reviews,
Traditional retailers in India can integrate online and which shape their shopping behaviors and preferences,
offline channels to create a seamless shopping ultimately contributing to a broader understanding of
experience by adopting omnichannel strategies that how traditional retailers can effectively integrate
leverage digital technologies and data analytics to online and offline channels to create a seamless
enhance customer engagement, personalize marketing shopping experience that meets the evolving demands
efforts, and provide consistent service across all of consumers, improves operational efficiency, and
touchpoints, which is essential for competing with the sustains competitive advantage in a rapidly changing
rapid growth of e-commerce platforms like Flipkart, retail landscape, providing valuable insights for
Amazon India, and Snapdeal between 2009 and 2016, academics, practitioners, and policymakers interested
as this approach allows retailers to blend the in the interplay between e-commerce and traditional
convenience and broad product selection of online retail marketing in India, thereby ensuring that
shopping with the tactile and immediate gratification traditional retailers can thrive by leveraging the
of in-store purchases, thereby addressing the evolving strengths of both digital and physical channels to
preferences of consumers who increasingly demand achieve sustainable growth and customer satisfaction.
flexibility and coherence in their shopping
experiences, as evidenced by empirical studies like • Digital tools and data analytics can be used to
Richa (2012), which highlights the role of better understand and meet customer needs:
demographic factors such as age, income, and Digital tools and data analytics can be used to better
education in shaping online shopping behavior, and understand and meet customer needs in the Indian
Chatterjee (2013), who points out that integrating context as the rise of e-commerce platforms like
digital tools can significantly improve in-store Flipkart, Amazon India, and Snapdeal has compelled
experiences by enabling features like click-and- traditional retailers to adopt these technologies to
collect, real-time inventory checks, and personalized remain competitive, with data analytics enabling
promotions, with Shoppers Stop being a notable retailers to gain deep insights into customer behavior,
example of an Indian retailer that successfully preferences, and purchasing patterns by analyzing
implemented an omnichannel strategy by offering large volumes of transactional and interaction data
customers the ability to shop seamlessly across its collected from various touchpoints, such as in-store
physical stores and online platform, thereby enhancing visits, online browsing, and social media interactions,
customer satisfaction and loyalty, while leveraging which can then be leveraged to personalize marketing
data analytics to gain insights into customer efforts, optimize inventory management, and enhance
preferences and tailor marketing efforts, as suggested the overall customer experience, as illustrated by
by Bharadwaj et al. (2013), who emphasize the empirical studies like Bharadwaj et al. (2013), who
importance of digital business strategies in highlight the role of digital business strategies in
maintaining competitive advantage, further supported maintaining competitive advantage, and Chatterjee
by Verhoef, Kannan, and Inman (2015), who found (2013), who points out that retailers can use customer
that retailers with effective omnichannel strategies data to tailor their product offerings and promotional
achieve higher levels of customer engagement and strategies, thereby increasing customer satisfaction
loyalty, and the regulatory environment also plays a and loyalty, while the integration of advanced
analytics tools allows for real-time decision-making (2013), who points out that traditional retailers must
and more effective targeting of marketing campaigns, leverage digital tools and data analytics to better
as evidenced by Shoppers Stop, which successfully understand and meet customer needs, optimize
implemented data analytics to understand customer inventory management, and personalize marketing
preferences and optimize its merchandising strategies, efforts, thereby creating seamless omnichannel
leading to improved sales and customer retention, and shopping experiences that integrate both online and
further supported by Verhoef, Kannan, and Inman offline channels, as evidenced by Shoppers Stop's
(2015), who found that retailers employing successful implementation of an omnichannel strategy
omnichannel strategies and leveraging data analytics that blended physical stores with its online platform,
achieve higher levels of customer engagement and enhancing customer satisfaction and loyalty by
loyalty, as these tools enable them to deliver a providing click-and-collect services, real-time
seamless and personalized shopping experience across inventory checks, and personalized promotions,
both online and offline channels, and Mukherjee supported by Bharadwaj et al. (2013), who emphasize
(2013) underscores the importance of navigating the the importance of digital business strategies in
regulatory environment, including data protection and maintaining competitive advantage, while Verhoef,
privacy regulations, which necessitates that retailers Kannan, and Inman (2015) found that retailers
implement robust data governance frameworks to employing effective omnichannel strategies achieve
ensure compliance while maximizing the value higher levels of customer engagement and loyalty, and
derived from customer data, and Singh and Sailo Mukherjee (2013) underscores the regulatory
(2013) emphasize the need for continuous innovation challenges and opportunities presented by government
and adaptation to meet the dynamic expectations of policies on foreign direct investment (FDI) in retail,
digitally-savvy consumers, who are influenced by data protection, and consumer rights, which traditional
social media, online reviews, and digital interactions, retailers must navigate to ensure compliance and
which shape their shopping behaviors and preferences, leverage policy changes for market positioning,
ultimately contributing to a broader understanding of highlighting the necessity for robust data governance
how digital tools and data analytics can empower frameworks to manage customer data responsibly, and
traditional retailers to better understand and meet Singh and Sailo (2013) emphasize the need for
customer needs, providing valuable insights for continuous innovation and adaptation to meet the
academics, practitioners, and policymakers interested dynamic expectations of digitally-savvy consumers
in the interplay between e-commerce and traditional who are influenced by social media, online reviews,
retail marketing in India, thereby ensuring that and digital interactions that shape their shopping
traditional retailers can leverage the strengths of both behaviors and preferences, ultimately contributing to a
digital and physical channels to achieve sustainable broader understanding of how e-commerce is
growth and customer satisfaction in a rapidly evolving reshaping the retail landscape in India and
retail landscape. underscoring the critical need for traditional retailers
to innovate and adapt their marketing approaches,
• Discussion related to the study: leveraging the strengths of both digital and physical
The discussion reveals that the proliferation of e- channels to achieve sustainable growth, customer
commerce platforms such as Flipkart, Amazon India, satisfaction, and competitive advantage in a rapidly
and Snapdeal has fundamentally altered the retail evolving retail environment, offering valuable insights
landscape by shifting consumer behavior towards for academics, practitioners, and policymakers
online shopping due to the convenience, wider product interested in the interplay between e-commerce and
selection, competitive pricing, and personalized traditional retail marketing, thereby ensuring that
shopping experiences these platforms offer, thus traditional retailers can thrive by embracing digital
posing significant challenges to traditional brick-and- transformation and omnichannel strategies to create a
mortar retailers, which have experienced declines in cohesive, engaging, and personalized shopping
foot traffic and sales, necessitating the adoption of experience that meets the evolving demands of
innovative strategies and digital transformation to consumers and sustains long-term growth.
remain competitive, as highlighted by Chatterjee
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