People were slow to adapt to shopping online when ecommerce was first introduced. Other than the convenience of shopping from home, people didn't think it was worth the risk. Online shopping was viewed as a risky way to shop where your credit card information could get easily stolen. The media spread horror stories that kept people away.
How time has changed! The volume of online transaction has been growing at rapid pace over the last decade. Now almost everyone who has internet has at least tried shopping online while many rely on it on a regular basis and some even shop exclusively online.
People are not as scared of their credit card information being stolen anymore because online security technology has made huge advances that they feel they are sufficiently protected. Major banks and payment companies also offer protection or guarantee against online fraud.
What is luring customers away from the traditional physical shops is that online shops are offering far cheaper prices. Great deals are found online and searching online for great deals is a process that takes minutes sitting in front of a computer while comparing prices from different physical stores would be a far more arduous task.
Online shops are able to offer customers significant discounts on their goods because they don't have the high overhead costs such as rent, utilities, sales staff and property maintenance that traditional physical shops must deal with. Running a shopping website requires just renting a web server, which costs anywhere from tens of dollars per month to no more than a couple of hundred dollars and a webmaster to keep the website running smoothly. Online shops don't have to tie up large amount of capital in stock while physical shops must keep enough inventory to fill the shop floor. A physical store is designed to serve the local community while an online store can reach customers anywhere in the world. This gives online shops the ability to achieve far larger economies of scale and pass on the savings to their customers.