Rapid expansion of e-commerce has reconfigured the competitive landscape for local businesses and reshaped the practice of place-based marketing. This article examines global e-commerce growth trajectories over the past decade and analyses how the rise of digital retail platforms alters local marketing strategies, budgets and consumer relationships. Drawing on a mixed-methods approach – statistical analysis of market data, a survey of 214 Uzbek and Central Asian small enterprises, and qualitative interviews with marketing managers – the study identifies three primary effects. First, the boundary between “online” and “offline” markets is eroding, compelling local firms to integrate omni-channel tactics. Second, data-driven targeting enabled by platforms such as Meta Ads and Yandex Direct is accelerating hyper-local personalisation while simultaneously heightening competition for attention. Third, regulatory interventions, logistics infrastructure and digital payment penetration act as mediating variables that determine whether e-commerce expansion crowds out or complements neighbourhood retailers. The findings suggest that local businesses that proactively adopt hybrid fulfilment models, invest in first-party data analytics and cultivate community-based brand narratives can offset the power asymmetry vis-à-vis global marketplaces. Policy implications include the need for granular digital-skills programmes and nuanced tax regimes that level the playing field without stifling innovation.

local marketing, omni-channel, e-commerce

eMarketer. Worldwide Retail Ecommerce Forecast 2024 Midyear Update [Electronic resource]. 2024. Accessed 07.06.2025.

UNCTAD. Digital Economy Report 2024: Fostering Development in a Data-Driven World [Electronic resource]. New York; Geneva: United Nations, 2024. Accessed 07.06.2025.

eMarketer. Worldwide Retail Ecommerce Forecast 2025 [Electronic resource]. 2025. Accessed 07.06.2025.

eMarketer. US Ecommerce Forecast 2024 [Electronic resource]. 2024. Accessed 07.06.2025.

Verma S. Impact of E-Commerce Business on the Local Business // International Journal of Innovative Research in Science, Engineering and Technology. 2024. Accessed 07.06.2025.

UNCTAD. E-Commerce and Digital Economy Measurement: 2024 Update [Electronic resource]. 2024. Accessed 07.06.2025.

BusinessDasher. Small Business Online Marketing Statistics for 2024 [Electronic resource]. 2024. Accessed 07.06.2025.

EcomVA. The Impact of Ecommerce on Local Businesses [Electronic resource]. 2024. Accessed 07.06.2025.

Waite R. The Impact of E-Commerce on Small Businesses: A B2B Perspective [Electronic resource]. 2025. Accessed 07.06.2025.

Reuters. End of Tax Loophole for Shein Starting to Have Impact, Say South African Retailers [Electronic resource]. 06.06.2025. Accessed 07.06.2025.