Abstract

E-commerce or online shopping is becoming a vital method of shopping worldwide, and it has a huge effect on consumer choices. This paper aims to investigate the impact of e-commerce on consumer satisfaction and preference compared to retail stores in Saudi Arabia. The paper uses applied methods using structural equation modeling to test the hypotheses; an electronic questionnaire with 30 questions was disseminated among 839 Saudis. After testing the reliability and validity, the result showed that e-commerce has a significant positive impact on consumers’ satisfaction and preference compared to physical stores. This paper seeks out what customers need and want, which provides Saudi businesses with insights to grow their online stores and improve their offline stores in order to compete in the market. The study has some limitations that need to be considered for future studies.

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