Helpful Online Shopping Tips

There is little doubt that, in a considerably short period of time, the Internet has grown enormously in both its applications and number of users. The Internet's great degree of adaptation, coupled with its relatively unique characteristics of interactivity and personalization, increases the chances of innovative business strategies.

Side Note: FACT- 1.58 million new users join the Internet EVERY MONTH!
(Source eMarketer.com)

FACT - Only 1/3rd of the World are on the Internet despite 1.58 million users
joining us every month.

One revolutionary change brought forth by the Internet - online shopping - has become a viable threat to traditional shopping channels, such as retail stores and catalogs in certain product areas (Lohse and Spiller, 1998). According to Ernst and Young's Annual Global Online Retailing Report (2001), online shopping will represent 10 to 12 percent of all sales in apparel, health, and beauty, and as much as 25 percent of all sales for books, music, software, and consumer electronics by 2005.

While the traditional "brick-and-mortar" shopping venues are restrained by time and space, the Internet has decreased the effort and time consumers spend on shopping (Bhatnagar et al., 2000). Furthermore, the Internet makes an unlimited range of products and services accessible for consumers all around the world (Quelch and Klein, 1996). Subsequently, people can buy or sell virtually anything, at anytime, from anywhere, through online shopping. For this reason, Samiee (2001) declared the Internet to be "one of the most significant, and perhaps the greatest, marketing tools for the global marketplace" (p. 284).

Despite the significant growth and optimistic outlook for the future growth of online shopping, negative aspects are also becoming more frequently associated with this alternative shopping method. For example, consumers are worried that the Internet still has very little security with respect to using their credit cards and disclosing personal information (Pallab, 1996). Consumers are also concerned about purchasing a product from "faceless" sellers without physically examining the products. Therefore, it is assumed that people may feel a certain degree of risk when purchasing a product through the Internet. In other words, consumers may worry about the performance of the product they are trying to purchase, the possible loss of their time or money, or even other people's judgments about their purchase, until they finally confirm the quality of the product.

Exercise the following precautions when shopping online:

• Know your vendor. You can check on the company's reputation with the Better Business Bureau. This is an especially good idea if you learned about the company from an unsolicited e-mail message. Ask if the vendor is located overseas because you might not have the same legal protections with overseas companies.

• Protect your privacy. Web sellers often collect information about you to share with other companies, so you can get bombarded with sales information you don't want. You can reduce the risk of unsolicited sales pitches by shopping from vendors that post their privacy policies and offer you options about use of personal information. In most cases, a vendor needs only your password, credit card number and shipping information. NEVER give anyone your credit card details via email.
• Pay with a credit card. Other payment options don't offer the same consumer protections. If the product doesn't arrive on time or if you aren't satisfied, you can dispute your vendor's charges. You also are protected from unauthorized credit card charges. Federal law limits your liability for unauthorized charges to $50. To confirm that you are on a secure server, look for an unbroken key or padlock at the bottom of your browser window. These symbols mean the information you send is encrypted. Paypal is an excellent way to make very secure payment online.
• Check delivery dates. Vendors usually tell you when to expect your merchandise when you place the order. Sellers must ship items no more than 30 days after the order date. If the seller can't ship the goods by then, you must be given a chance to cancel and receive a full refund.
• Check shipping and handling fees. Be sure to designate the delivery mode you prefer, or the vendor may decide for you. Many retailers base their shipping fees on the price of the item or the weight of the goods.
• Track your purchases. Print out and file any records related to on-line purchases. Save a printout of the web pages with the seller's name, address, phone number, a description of what you ordered, and any e-mail messages to or from the seller. These documents can be your insurance policy in case you don't receive you order or you receive the wrong shipment. Fedex and DHL for example, employ very effective tracking systems, giving you the ability to trace your shipment from dispatch to delivery.