The potential of local online shopping platforms for villages and small and medium-sized towns

Abstract

For decades, many rural areas and small and medium-sized towns (SMSTs) have struggled with a declining number of retailers and shops. While it was argued that digitalisation can help businesses to counteract the rural penalty, little empirical evidence has been collected so far. With this study, we shed a light on the possibilities and limitations of local online shopping platforms to foster the local retail economy by digital means in the rural and SMST context by studying three initiatives in different European countries. Interviews with platform managers and participating businesses, together with the analysis of accompanying documents and a comparative content analysis of the websites, provide in-depth insights into the development and functioning of these online initiatives. The study shows that the platforms increased the options for selling beyond the region and helped businesses to go online as well. However, the small scale of the platforms demands high personal and financial commitment to succeed in the long term. The study also demonstrates the importance of place-specific conditions (online-place dependency) such as existing local and regional networks and spatial determinants like the remoteness of potential customers or the diversity of local shops. Based on these findings, we present an overview of the opportunities and obstacles of local online shopping platforms in the rural and SMST context.