The call to shut down e-commerce is increasing? Why don't developed countries advocate for e-commerce "expansion"

Tech 2023-07-14 23:07:45 Source: Network

With the rapid development of the Internet, domestic e-commerce has also made steady progress, and in recent years, it can be said that breakthroughs have been made. Domestic e-commerce platforms have sprung up like mushrooms

With the rapid development of the Internet, domestic e-commerce has also made steady progress, and in recent years, it can be said that breakthroughs have been made. Domestic e-commerce platforms have sprung up like mushrooms. Traditional e-commerce platforms such as Ali, Jingdong, and Pinduoduo have split up the main online traffic, and some platforms with relatively small scale and size have quietly worked in a more segmented market space, and become prosperous with their unique operation model. It must be acknowledged that the rise of e-commerce platforms is reshaping users' consumption habits, gradually freeing them from dependence on offline physical stores, bringing great convenience to people.

However, everything has its advantages and disadvantages. While e-commerce platforms bring convenience to people's lives, they also have a devastating impact on offline stores, driving the store economy to a "dead end" and will never be undone at any time. Many store operators complain that they can hardly see a particularly lively scene walking on the streets now, and storefronts facing the street are either "flourishing for sale" or have few doors, resulting in very poor business. In this context, many store operators have begun to target e-commerce, believing that it has destroyed the "real economy", and the call for "shutting down e-commerce" has become increasingly high.

Will the closure of the e-commerce platform improve the business of the store? The answer is no. We must clarify a concept, what is the real economy and what is commodity circulation. From an economic perspective, the real economy refers to the entire process of invention, creation, production, and circulation of products or services, including material production and services in agriculture, industry, transportation and communication, commercial services, construction, and cultural industries. However, most store operators have significant limitations in their understanding of the "real economy". In fact, store sales and e-commerce sales are just two choices for the circulation of goods or services. The faster goods or services circulate, the more prosperous the economy becomes.

So the question is, since e-commerce platforms can promote economic prosperity, why do developed countries not advocate for the "expansion" of e-commerce platforms? We need to analyze this issue from at least three aspects.

Firstly, tax issues

Most developed countries have well-established social welfare systems, and the foundation of this system is stable taxation. Therefore, developed countries attach great importance to the regulation of taxation. In developed countries, the tax rates of e-commerce and stores are almost equal, and once tax evasion is discovered, heavy fines will be imposed. Although e-commerce greatly facilitates people's shopping, it has brought many troubles to tax regulation and even led to "tax blind spots". In other words, developed countries deliberately control the development scale and quantity of e-commerce platforms in order to ensure tax stability, while e-commerce operators do not have much profit space under the premise of equal tax rates, so there is no scene of domestic "rush".

Secondly, lifestyle habits

The biggest advantage of e-commerce is its convenience, as you can buy what you want without leaving your home, or simply order takeout and deliver it to your doorstep. Therefore, the rise of e-commerce is reshaping the consumption habits of domestic consumers. In fact, the reason why domestic consumers have this consumption habit is also related to the enormous pressure of life and work. Most of the main consumer groups nowadays require a lot of time to work, and are physically and mentally exhausted every day. They have no leisure time to shop and consume, and can only use their limited time to purchase essential goods online. On the contrary, people in developed countries have a lot of time to relax and take their families shopping, traveling, and vacationing. It can be said that different lifestyle habits determine that e-commerce also has different "fates".

Thirdly, employment issues

It must be acknowledged that e-commerce has the advantage of low labor costs. Overall, e-commerce can create circulation value far beyond stores with fewer people. It is precisely because of this that employment has become a new problem. In developed countries, the employment rate reflects the quality of the economy and directly determines the "performance" of officials, so these countries attach great importance to the employment of the people. Relatively speaking, offline stores can provide more job opportunities, which is beneficial for social stability.

In addition to the above three reasons, the level of economic development and product quality issues are also the reasons why developed countries do not advocate e-commerce. Nowadays, the call for "shutting down e-commerce" in China is increasing, and discussions are also becoming increasingly intense. In my opinion, controlling the quantity of e-commerce through tax rates to maintain relative stability in the circulation process not only ensures employment opportunities but also promotes economic prosperity. What do you think of this?

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