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Online shopping or Online retailing is a form of electronic commerce whereby consumers directly buy goods or services from a seller

over the Internet without an intermediary service. An online shop, eshop, e-store, Internet shop, webshop, webstore, online store, or virtual store evokes the physical analogy of buying products or services at a bricks-and-mortar retailer or shopping centre. The process is called business-to-consumer (B2C) online shopping. When a business buys from another business it is called business-to-business (B2B) online shopping.

In 1990 Tim Berners-Lee created the first World Wide Web server and browser.[1] It opened for commercial use in 1991 . In 1994 other advances took place, such as online banking and the opening of an online pizza shop by Pizza Hut.[1] During that same year, Netscape introduced SSL encryption of data transferred online, which has become essential for secure online shopping. Also in 1994 the German company Intershop introduced its first online shopping system. In 1995 Amazon launched its online shopping site, and in 1996eBay appeared.[1]

competitive pricing. income. and greater access to information. and occupation of the head of the household correspond to more favorable perceptions of shopping online. increased exposure to technology increases the probability of developing favorable attitudes towards new shopping channels.[3] Design Customers are attracted to online shopping not only because of the high level of convenience.Customers Online customers must have access to a computer and a method of payment. higher levels of education. increases customer value and builds sustainable capabilities.[2] In a December 2011 study Equation Research found that 87% of tablet users made an online transaction with their tablet device during the early holiday shopping season. but also because of the broader selection. In general. Also.[6][7] Business organizations seek to offer online shopping because it is much lower cost compared to bricks and mortar stores. offers access to a world wide market.[clarification needed][8] .

For example.[20] . visit the post office and pay return shipping. In the event of a problem with the item it is not what the consumer ordered. Other establishments such as internet cafes and schools provide access as well. and does not charge a restocking fee. and many consumers have Internet access both at work and at home. Consumers may need to contact the retailer. Some online companies have more generous return policies to compensate for the traditional advantage of physical stores. A visit to a conventional retail store requires travel and must take place during business hours. online shops are prohibited from charging a restocking fee if the consumer cancels their order in accordance with the Consumer Protection (Distance Selling) Act 2000). and then wait for a replacement or refund. offers access to a world wide market. or it is not what they expected—consumers are concerned with the ease with which they can return an item for the correct one or for a includes labels for free return shipping.Advantages [edit] [7] Business organizations seek to offer online shopping because it is much lower cost compared to bricks and mortar stores. the online shoe retailer Zappos. (Note: In the United Kingdom. increases customer value and builds sustainable capabilities Online stores are usually available 24 hours a day. even for returns which are not the result of merchant error.

[edit]Price and selection One advantage of shopping online is being able to quickly seek out deals for items or services with many different vendors (though some local search engines do exist to help consumers .[edit]Information and reviews Online stores must describe products for sale with text. Some online stores provide or link to supplemental product information. or other experimentation). whereas in a physical retail store. fitting. Some provide background information. the actual product and the manufacturer's packaging will be available for direct inspection (which might involve a test drive. Some online stores have real-time chat features. photos. and multimedia files. Some stores even allow customers to comment or rate their items. In a conventional retail store. such as instructions. safety procedures. Reviews and now blogs gives customers the option of shopping cheaper organise purchases from all over the world without having to depend on local retailers. There are also dedicated review sites that host user reviews for different products. or how-to guides designed to help consumers decide which product to buy. or manufacturer specifications. demonstrations. advice. but most rely on e-mail or phone calls to handle customer questions. clerks are generally available to answer questions.

Another major advantage for retailers is the ability to rapidly switch suppliers and vendors without disrupting users' shopping experience. Shipping costs (if applicable) reduce the price advantage of online merchandise. Disadvantages [edit]Fraud and security concerns Given the lack of ability to inspect merchandise before purchase. consumers are at higher risk of fraud on the part of the merchant than in a physical store. online price comparison services and discovery shopping engines can be used to look up sellers of a particular product or service. merchants face less risk from physical theft. high-value items like electronics) offer free shipping on sufficiently large orders. Search engines.locate products for sale in nearby stores). Merchants also risk fraudulent purchases using stolen credit cards or fraudulent repudiation of the online purchase. though depending on the jurisdiction. Shipping a small number of items. is much more expensive than making the larger shipments bricks-and-mortar retailers order. Secure Sockets Layer (SSL) encryption has generally solved the problem of credit card numbers being intercepted in transit . With a warehouse instead of a retail storefront. especially from another country. Some retailers (especially those selling small.. a lack of sales tax may compensate for this.

Before buying from a new company. A number of resources offer advice on how consumers can protect themselves when using online retailer services. when they have actually been manipulated into feeding private information to a system operated by a malicious party. who deploy countermeasures such as firewalls and anti-virus software to protect their networks. evaluate the website by considering issues such as: the professionalism and user- . or attempting to find independent consumer reviews of their experiences.between the consumer and the merchant. Denial of service attacks are a minor risk for merchants. Phishing is another danger. as are server and network outages. These include:   Sticking with known stores. may foil this effort to a certain extent. also ensuring that there is comprehensive contact information on the website before using the service. Quality seals can be placed on the Shop web page if it has undergone an independent assessment and meets all requirements of the company issuing the seal. A number of high-profile break-ins in the 2000s has prompted some U. Identity theftis still a concern for consumers when hackers break into a merchant's web site and steal names. or seals unfamiliar to consumers. states to require disclosure to consumers when this happens. and noting if the retailer has enrolled in industry oversight programs such as trust mark or trust seal. The purpose of these seals is to increase the confidence of the online shoppers. Computer security has thus become a major concern for merchants and e-commerce service providers. the existence of many different seals. addresses and credit card numbers.S. where consumers are fooled into thinking they are dealing with a reputable retailer.

faulty products. If it does the address on the credit card information entry screen will start with "HTTPS"." which might be something along the lines: "I shop 4 good a buy!!" These are difficult to hack. lower. without personal information. Another option is a "pass phrase.  Ensuring that the vendor address is protected with SSL (see above) when entering credit card information. such as excessive shipping and handling charges. Whenever you purchase a product. It is advisable to be aware of the most current technology and scams out there to fully protect yourself and your finances. If the website is not secure a customers information can be accessible to anyone who knows how to obtain it. . and provides a variety of upper. and the accumulation of spyware. and special characters and could be site specific and easy to remember. A few problems that shoppers potentially face include identity theft. Most large online corporations are inventing new ways to make fraud more difficult. whether or not the company lists a telephone number and/or street address along with e-contact information. For example note if the retailer does not explicitly state that it will not share private information with others without consent.  Using strong passwords. when the process goes poorly it can create a thorny situation. you are going to be required to put in your credit card information and billing/shipping address.  Ensuring that the retailer has an acceptable privacy policy posted. whether a fair and reasonable refund and return policy is clearly stated. it is a constant fight to maintain the lead. the criminals are constantly responding to these developments with new ways to manipulate the system. and whether there are hidden price inflators. Even though these efforts are making it easier to protect yourself online.[20]. Although the benefits of online shopping are considerable.friendliness of the site. however.

but it is up to their discretion if this will happen. they have no responsibility (provided the product is what the buyer ordered and is in the specified condition). . however. While it may be easy to compare the base price of an item online. Some services such as the Canadian based Wishabi attempts to include estimates of these additional cost. it may not be easy to see the total cost up front as additional fees such as shipping are often not be visible until the final step in the checkout process.[20]. Different legal jurisdictions have different laws concerning consumer privacy. Many consumers wish to avoid spam and telemarketing which could result from supplying contact information to an online merchant. the lack of general full cost disclosure remains a concern. they are generally out of luck. or provide a mechanism to opt-out of such contacts. Some shipping companies will offer refunds or compensation for the damage. where the cost indicated at the final checkout screen may not include additional fees that must be paid upon delivery such as duties andbrokerage. if the buyer opts not to purchase insurance on their products. [edit]Lack of full cost disclosure The lack of full disclosure with regards to the total cost of purchase is one of the concerns of online shopping. many merchants promise not to use consumer information for these purposes. The problem is especially evident with crossborder purchases.[21] but nevertheless. In response. It is important to realize that once the product leaves the hands of the seller.One of the hardest areas to deal with in online shopping is the delivery of the products. and different levels of enforcement. [edit]Privacy Privacy of personal information is a significant issue for some consumers. Most companies offer shipping insurance in case the product is lost or damaged.

many consumers have begun going to realworld stores to view a product. but these reviews can be sometimes subjective and based on personal preferences that may not reflect end-user satisfaction once the item has been received. [edit]Hands-on inspection Typically. This information is obviously not accessible to the merchant when paying in cash. they will not have a full understanding of the item they are buying.[22] . Many larger stores use the address information encoded on consumers' credit cards (often without their knowledge) to add them to a catalog mailing list. However.Many websites keep track of consumers shopping habits in order to suggest items and other websites to view. only simple pictures and or descriptions of the item are all a customer can rely on when shopping on online stores. Some ask for address and phone number at checkout. If the customer does not have prior exposure to the item's handling qualities. Brick-andmortar stores also collect consumer information. Target has requested distributors give them equally low prices. or alternatively. before purchasing online. though consumers may refuse to provide it. exclusive products available at their store only. Because of this. Brick-and-mortar merchants have responded with various countermeasures. For example. These can be helpful for prospective customers. Written and Video Reviews are readily available from consumers who have purchased similar items in the past. which is sometimes called showrooming[22] (using the store as a showroom for the online merchant).

Products such as spare parts. (March 2012) Many successful purely virtual companies deal with digital products. and financial transactions. and they may have shut-ins as their typical purchasers. office supplies. Please help improve this article by adding citations to reliable sources. photography. they may involve embarrassing purchases. Some non-digital products have been more successful than others for online stores. since they typically do not stock them at consumer outlets—in such cases. Profitable items often have a high value-to-weight ratio. ecommerce solutions in spares do not compete with retail stores. DVDs and books—are particularly suitable for a virtual marketer. communication. also seem good candidates for selling online. (including information storage. Unsourced material may be challenged and removed. only with other ordering systems. software. and modification). music. both for consumer items like washing machines and for industrial equipment like centrifugal pumps. education. movies. Retailers often need to order spare parts specially. retrieval. they may typically go to people in remote locations. A factor for success in this . Items which can fit in a standard mailbox—such as music CDs. Other successful marketers use Drop shipping or affiliate marketing techniques to facilitate transactions of tangible goods without maintaining real inventory.[edit]Product suitability This section needs additional citations for verification.

Middle East.niche can consist of providing customers with exact. offer hosting services for online stores to all size retailers. The Nielsen Company conducted a survey in March 2010 and polled more than 27. "How do they use various online shopping web pages?". North America and South America to look at questions such as "How do consumers shop online?". [edit]Aggregation High-volume websites. These stores are presented within an integrated navigation framework. Collections of online stores are sometimes known as virtual shopping malls or online marketplaces. reliable information about which part number their particular version of a product needs.S. [edit]Impact of reviews on consumer behaviour One of the great benefits of online shopping is the ability to read others' reviews. which could be from experts or simply fellow shoppers on one product and service. products that need trial fittings— most notably clothing—and products where colour integrity appears important. and eBay. products that have a smell. "What do they intend to buy?". and the impact of social media and other factors that come into play when consumers .000 Internet users in 55 markets from the Asia-Pacific. for example by providing parts lists keyed by serial number. Amazon. such as Yahoo!. Europe. or touch component. Products less suitable for e-commerce include products that have a low value-to-weight ratio. some web sites have had success delivering groceries and clothing sold through the internet is big business in the U. taste.

according to the same research. reviews on cars (45%).[23] reviews on electronics (57%) such as DVD players. In addition to online reviews. [edit]See              also Bricks and clicks business model Direct imports Electronic business Electronic commerce List of free and open source eCommerce software List of online stores Online auction business model Online music store Online pharmacy Online shopping malls Online shopping rewards Open catalogue Retail therapy .[23] 40% of online shoppers indicate that they would not even buy electronics without consulting online reviews first. cell phones or PlayStations and so on. and reviews on software (37%) play an important role and have influence on consumers who tend to make purchases and buy online.are trying to decide how to spend their money on which product or service.[25] On the other hand. cars and travel or concert bookings. According to that research. peer recommendations on the online shopping pages or social media play a key role[24] for online shoppers while researching future purchases of electronics.

B. A. "Bill-2Phone Lets Customers Add Online Purchases to Their Phone Bill". Mashable. S. Enrique (2005). ^ Bigne. ^ Jarvenpaa. "The Impact of Internet User Shopping Patterns and Demographics on Consumer Mobile Buying Behavior". 25. Michael (Saturday. ^ Lopresti. & Russel J. 3. & Bronnenberg.A. & Todd. 2011. (1974) An Approach to Environmental Psychology. (1997). International Journal of Information & Management 24 (2004). Sockel.[edit]References 1. ^ Campbell. (1997). ^ Mehrabian. L.(2007) News & World Report.. ^ Geena Rao (July 19. September 4. Journal of the Academy of Marketing Science. 7.. Kimberly. 329–346. J. Kuanchin. M. (1988) Task complexity: A review and analysis. R. ^ a b Stephen F. Retrieved 23 November 2010. Balasubramanian. ^ a b c Palmer. December 8. Journal of Electronic Commerce Research 6 (3). S. Exploring the implications of the Internet for consumer marketing. "A framework for internet channel evaluation". Allbusiness. A.).. ^ Peterson. 10. 40–52. A. ^ a b Huang. 2007. 2. International Journal of Information Management 20: 337–347. 11.. MA: The MIT Press. D. Louis K.J. 13(1). Hy. P. Chen. Consumer reactions to electronic shopping on the world wide web. 5. Retrieved 23 November 2010. 8. King en Juhn-Shiuan Liou. TechCrunch. Academy of Management Review. 2010). 59–88. (2005) "E-Commerce and Consumer's Expectations: What . 473–488 9. Cambridge. 6. ^ a b c d Falk. (2000) Information load: its relationship to online exploratory and shopping behavior. "Mopay Now Allows You To Bill Mobile Payments To A Landline Account". 12. International Journal of Electronic Commerce.. ^ a b "More Consumers Using Tablets to Holiday Shop [STUDY"].

^ "Nielsen Global Online Shopping Report". February 28. 516–532 16. 23. US 2011. 25. ^ a b Nielsen. Macredie. 2010) 24. ^ "A guide for businesses on distance selling". May 17. "Expectations versus reality: a snapshot of consumer experiences with Internet retailing". View page ratings . 22. ^ "Forrester: Online Retail Industry In The US Will Be Worth $279 Billion In 2015". ^ By Bonsoni." Journal of Website Promotion. 1(1) (65–75) 13. ^ a b ^ NPD 18. Retrieved 2010-02-10. 21. Ann (23 January 2012). (USA: The Nielsen Company. 2010-06-29. "The assessment of usability of electronic shopping: A heuristic evaluation". Chen en Robert D. ^ Ram L. ^ "Keeping It Real for Cross-Border Online Shoppers". ^ National Retail Federation survey 19. Understanding Online Shopper Behaviors. ^ Steve Elliot and Sue Fowell. 2011". TechCrunch. 2011 (2011-0710). 20. Blog.nielsen. Kumar et al. Wall Street Journal (New York NY).com. ^ a b Sherry on July 10. Retrieved 2008-12-24. ^ "Forrester Research. Retrieved 2012-01-19. "Showdown Over 'Showrooming'". 2011. "User interface features influencing overall ease of use and personalization". International Journal of Information Management 25 (2005).. 17. Bonsoni. International Journal of Information Management 20 (2000): 323–336 15. "Research shows word of mouth drives online sales".Makes a Website Work. "Online Shopping Trends". Retrieved 28 January 2012. Retrieved 2012-01-19. Information & Management 41 (2004): 289–302 14.

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. This page was last modified on 11 May 2012 at 21:55.