The Internet, eBay, and the Globalization of Markets

Until a few years ago, if you wanted an item you would simply go down to the store and pick it up. If it was not there, you were out of luck and would have to do without. If you desired an item that was only sold internationally, you were out of luck.

Then came the Internet. Over the past few years, with the rise of sites such as Amazon.com and eBay.com, international trade has been on the rise. In addition to these sites, there are numerous ways to get your hands on global products through the great resource that is the Internet. Anyone with a credit card can go online, shop, and have a package at their door the next day. The Internet has truly globalized the market. And what is the result? An increase in supply, a decrease in cost, and an increase in ease of obtaining the desired product.

Increased supply is the first result of the globalization of markets. Rather than being restricted to one's surroundings, consumers have a wide array of purchasing options opened up to them. Whether searching for the perfect sneakers or for that rare baseball card, the odds of success are much greater on the Internet than through other means. The Internet opens the marketplace to sellers worldwide, and thus creates the ultimate one-stop-shop for consumers.

The sheer competition developed through the globalization of the market on the Internet leads to lower prices. Those who wish to compete must lower their prices or be forced out of the market. This leads to consumers being able to get more for their money - an extremely important concept in the tough economic times.

One of the great things about the Internet is the ease of shopping. Simply a few clicks away, the Internet brings a global marketplace to your home. Without even having to leave the couch, one can purchase an item from thousands of miles away, only to have it arrive at the front door a day or two later. I wonder what our ancestors would have thought if presented such a notion?

As with anything, however, there are also drawbacks. No system is perfect, and this is no exception to the rule. I will discuss these in more detail at a future date, but for now let it suffice to say that local brick-and-mortar stores are feeling the pressure of competing with the low prices and great variety offered by the Internet.