Definition : E-commerce cannibalization

E-commerce cannibalization refers to the phenomenon where the sales of a company’s online platform negatively impact the sales of its physical stores or other sales channels. This occurs when customers shift their purchasing behavior from traditional brick-and-mortar stores to the convenience and ease of online shopping. This can result in a decrease in overall revenue and profitability for the company, as well as potential conflicts between different sales channels. E-commerce cannibalization is a common challenge faced by businesses in the digital age, as the popularity and accessibility of online shopping continue to grow.

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