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E-commerce Is Concentrating Jobs, Not Killing Them (axios.com)

Posted by msmash on from the bigger-picture dept.

A reader shares a report: The growing popularity of online shopping has hit traditional retailers hard, culminating in a spate of retail bankruptcies and store closures in recent years. But according to a new analysis from the Federal Reserve Bank of New York, the retail apocalypse has actually created nearly as many jobs as it has killed. Though e-commerce and other non-store retailers have hired nearly as many workers as traditional retailers have cut, these new jobs are much more geographically concentrated.

3 of 105 comments (clear)

  1. Nonsense! by DaMattster · · Score: 4, Insightful

    This sounds an awful lot like "corporate speak." It sounds like an HR buzzword. "Oh, we're just concentrating jobs ...." I hate articles like this that insult my intelligence and assume that I have no critical thinking skills. Well, maybe they hope that I do not have critical thinking skills. With eCommerce, there are fewer people needed as it is all about automation. In a brick and mortar store, you have salespeople. In an eCommerce setup, the salesperson is totally bypassed as you do your own shopping and check out when you want. Some stores do offer a pop-up chat where you can ask questions but this person is likely a shared commodity among several eCommerce stores. This is why sometimes the person at the other end of the chat takes some times to answer you. I don't believe this study has any merit whatsoever. What happens to all of the peripheral jobs that brick and mortar stores create? There are people that needed to maintain the spaces and service them when needed. If the store is in a mall, then the stores support the various services like security, cleaning staff, and maintenance technicians.

    1. Re:Nonsense! by war4peace · · Score: 5, Informative

      Not only that, but the article (the original one, not the summary slashdot copied almost word-per-word) says:

      If wages are a rough proxy of employers’ demand for certain skillsets, then these two categories of jobs would seem to have different skill requirements: in 2012, the average online retail job paid slightly over $50,000, while the average department store job paid just $20,500. By 2016, the average wage for nonstore workers exceeded $59,000, while the average wage for department store workers remained roughly the same. Part of this pay gap reflects the fact that department store jobs are more likely to be part-time. Nevertheless, the difference is staggering, suggesting that nonstore retailers demand a different type of worker than department stores do. So, even if laid-off department store workers were willing and able to move to, say, King County, they might lack the skillsets sought by e-tailers.

      The amount of jobs stayed the same, but the people who got axed from brick-and -mortar stores are the ones that would never be able to "switch jobs" and become e-market employees. Higher-skilled workers got more jobs, while lower-skilled workers got the shaft.

      --
      ...gis sdrawkcab (usually not responding to ACs; don't bother posting as AC)
  2. FYI I work with small e-comerce clients by oldgraybeard · · Score: 4, Interesting

    I have clients scattered across the US, some live in metro areas some in rural areas.
    Their servers are located god knows where in some data center. Only 3 live in the same state I do.
    I do a majority of my work remotely, from my home office or my office/work shop that is 2 miles from my home.

    It is true, Amazon is having a large effect on things. And they are really hurting most small e-commerce sites, since Amazon skims 8%-15% off the top of every invoice total, which really hurts the smaller operators since Amazon takes a large chunk of what little margin there is on most items plus in order to get real visibility on Amazon you must use fulfilled by Amazon and they also charge an inventory management fee if you do that.

    But if Amazon gets the sales volume up enough an Amazon store can work. But their user interface for managing your store truly sucks. And their master inventory system is a complete mess. And it is a constant battle with them as they re categorize your products from 8% commission groups to 15% commission groups and you spend a week or 2 arguing with them to get them changed back to the proper group. Then next month they will move some other inventory items to the 15% group. It is a mess, but a mess that is forced on more and more small e-commerce sites.

    BTW That is why Amazon supports Internet Sales Taxes, They want to force small e-commerce sites to switch to Amazon Stores so they get first shot at skimming profit off the top of all sales.

    Now getting back to how this relates to the article. These e-commerce sites need technical individuals to help them wade through the technical complexities if they really want to be successful. So there is a niche for tech outside of the high cost of living hubs. But it takes a different approach and a lot of work.

    Now in the end Amazon "WILL/HAS" win/won. And individuals like me will need to find other niches that allow us to live where we want. But that is just the way of things ;) Change is a constant ;)