The Rural Rise of E-commerce in 2017 |
Posted: July 26, 2017 |
E-commerce began to take the world by storm in the early 2000s with the eventual success of companies such as Amazon, who had seen the potential of the early internet to connect buyers with sellers on a massive, global scale. Since that time, e-commerce has come to redefine how we shop, our expectations of product range and availability, market size, and the scope of a business. From the smallest home-based company to the largest multinational e-commerce giant, the advancement of the internet and associated computer technologies have created a global marketplace and a global range of possibility. However, this marketplace has remained, until now, largely untouched by the rural populations of the world due to lack of internet services available. Infrastructure Concerns Of Rural Economies Even now, infrastructure remains a major social and economic barrier for rural communities. With disproportionately high percentages of the rural population living below the federal poverty level as compared to urban areas, already disenfranchised communities face further disconnection from the rest of the world and viable means of financial stability due to a severe lack of internet infrastructure. Nearly 40% of rural households in the United States do not have access to broadband internet connections. This means that even if they had the money and desire to establish high speed service, it is not available because the infrastructure does not exist. Luckily, satellite internet is causing a sharp change in these numbers, both domestically and internationally. With more satellites and enhanced technology, satellite internet users are reported to be experiencing speeds up to 140% higher than the top speed advertised by their provider. Effective E-commerce Models In Rural Communities For emerging rural economies based in e-commerce, there are abundant opportunities to market goods to global clients who may be interested in handcrafted items, art, or food. Regional specialties have long caught the attention of buyers, and these niche markets are excellent places for rural start-up companies to begin. Of course, with adequate connection speeds, rural communities can participate in any e-commerce endeavor, whether it be their own company or as a service technician or call center operative for a larger corporation. It is estimated that up to 63 million Americans work from home in a variety of fields, and rural communities are a clear choice of recruitment locations for previously unused talent due to the inability to commute to urban areas in effective time frames. Economic Impact And Projections For Development In the United States, studies have shown that rural communities with access to broadband have lower unemployment and higher incomes than those that do not. And in countries such as India, with over 70% of the population living in rural areas, connecting this workforce to the internet opens a huge, untapped workforce and goldmine of potential for the impoverished country through e-commerce initiatives. In areas where little or no industry exists, e-commerce offers a unique opportunity to create jobs, earn income, and completely change the face of impoverished rural communities worldwide. With stable, fast, and reliable connectivity, rural households have access to countless internet-based careers and trade opportunities, without requiring living in larger urban areas. Obviously, the impact for individuals is great. But the overall impact of reducing unemployment, raising families about the poverty level, and empowering communities to be financially independent is beneficial to all. Thankfully, although major infrastructure may lag behind, satellite providers for internet are beginning to open the doors of opportunity for rural communities worldwide. Satellite technology, although it has existed since the fledgling days of the internet, has grown to become a real, viable, and ultimately successful model of delivery of internet services to rural communities globally. With increased infrastructure and the ability to connect with the greater world, rural communities may expect to see vast improvements economically and equal opportunities in the competitive e-commerce markets. The untapped talent of rural communities promises to be a benefit to overall industry.
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