Brick and mortar commerce in rural areas faces many challenges due to lower population density and geographic dispersion. Consequently, to remain profitable, businesses must reduce the number of physical outlets available to consumers and carry a significantly less varied offering of products, often at higher prices. These challenges also affect consumers in rural areas, who are frequently forced to travel two to three times as far as residents of urban areas to go shopping.

Given the greater distances rural residents must travel to reach physical commerce, coupled with less availability of public transportation in those areas, almost all rural consumers use their private vehicles to do their shopping: 81% of consumers in low-density rural areas and 76% in dense rural areas, compared to only 54% of urban consumers. This discrepancy translates into higher spending for rural consumers and increased pollution. The depopulation of rural areas compounds these problems, shrinking the population density even further.

NERA was retained by Amazon to examine the effects of e-commerce in rural areas of Spain. The report analyzes the challenges of retail commerce in rural areas and uses survey results from rural businesses and consumers to assess the benefits e-commerce provides to rural residents in Spain.  

The report found e-commerce helps rural consumers and businesses overcome their specific challenges from shopping solely at physical retailers. Rural consumers’ use profile is similar to urban consumers, however they are able to save more money and time and are afforded more inventory choices and better quality products with e-commerce. Rural businesses in Spain are adopting e-commerce at a fast pace, using e-commerce to increase their sales, including exports, and their profitability, owing to lower distribution and marketing costs.

The report also found e-commerce has a positive environmental impact because it reduces the number of shopping trips needed by rural consumers. The greenhouse gas and other emissions of rural consumers’ shopping trips are twice as large as the emissions from e-commerce delivery, saving potentially tens of thousands of tons of CO2 from being released. 

Please note that the report is available in Spanish only.