Final answer:
The shift in power from retailers to consumers in e-tailing is due to the ability of consumers to purchase globally and access pricing information, leading to increased competition and consumer empowerment. The correct option is 3.
Step-by-step explanation:
One of the most dramatic changes created by e-tailing is a shift in power between retailers and consumers. This shift is largely due to two interconnected factors: technology and globalization. The emergence of the internet has allowed consumers not only to purchase from retailers in other countries, but also to access a wealth of pricing information that previously was controlled by retailers. Such changes have led to increased competition among retailers and a corresponding rise in consumer power. Conversely, suggestions that this shift emanates from an inability of online retailers to compete, a lack of competition in e-tailing, or a decrease in consumer power are less supported by the evidence.
Business-to-business e-commerce platforms further extend these dynamics to the supplier-consumer relationships in various industries. And while there is an ongoing debate about whether this digital marketplace will favor smaller or larger firms, it is clear that the competitive landscape has been irrevocably altered in favor of greater consumer influence and choice.
In the book selling industry, for example, Amazon.com has been a major force behind these changes, having reshaped the industry and placed considerable pressure on traditional brick-and-mortar bookstores, largely due to the advantages provided by the information and communication technologies that underpin the modern e-tailing environment.