Zoltex eCom: Guide to Electronic Commerce, Online Shopping

Guide to Electronic Commerce, Shopping Online

Pick 'n' Click

You know the symptoms: light-headedness, rubbery legs, and the feeling that if you see one more "Red Tag Sale" sign you're going to scream. After a long day of bargain hunting, even die-hard shopaholics can find themselves plummeting from shopping euphoria to near exhaustion. Shopping on the Web is about as risky as shopping through a mail-order catalog. "Fear is always a companion to change, and the Internet signals change," "But the things poeple are worried about -- insecure transactions, online scams, even displacing offline businesses -- are based on hype, not reality."

Questions

-- most frequently about security.

On most merchant Web sites, communications between visitors and the merchant, including transactions, are protected by Secure Sockets Layer (SSL) or Secure Electronic Transactions (SET) technology. Both SSL and SET are encryption protocols that protect data transmitted over the Internet and enable the secure use of electronic credit card transactions. A pop-up window alerts consumers when they enter a merchant Web site secured with SET or SSL. In addition, a secure-transaction icon -- -- should appear at the bottom of the browser screen, and remain there until the shopper leaves the secure area. Many merchants also list toll-free telephone numbers, so consumers concerned about security can always call, fax, or mail credit card and order information.

There are signs that consumer confidence in online security has grown in the last year. In a report to Reuters news service in early January, Forrester Research analyst Kate Delhagen said, "We believe that the online retail market will grow from US$2 billion in the value of goods sold during 1997 to more than $17 billion in 2001." Forrester reports that online shopping revenues for last year were just over $500 million. By the year 2000, they are expected to top $6.6 billion.

Variety and Convenience

Convenience is probably the biggest selling point of shopping online. Instead of racing across town for that special something, only to find that it's out of stock, simply click your mouse, type in your order, and you're done. Shipping times vary, of course, from merchant to merchant, but it shouldn't take any longer for you to receive an online purchase than it would if you ordered from a catalog.

Online merchants based in your hometown can deliver more quickly. Increasingly, local grocery stores, drugstores, and pharmacies are offering their wares on the Internet.

Shoppers in Manhattan (New York, U.S.A.) can head for NYC Grocery.com, the online shopping site for the Karabelas Food Market, which offers everything from alcoholic beverages to soups, plus same-day delivery.

Up in Newfoundland, Canada, Belbin's Grocery brings fresh meats, poultry, and produce to Internet shoppers for a delivery charge of just CAN$1.50, and features weekly specials for its online clientele.

In Boston, Massachusetts, hungry shoppers can go to food-online.com to shop by the item or by the meal. An online recipe guide helps visitors plan meals and select the ingredients they need.

Although they don't deliver, the Price Plus Bakery and Deli in Aberdeen, Washington, takes online orders from local patrons who simply wing by the store after work and pick up their groceries before heading home. Wired magazine predicts that by 2005, 20 percent of Americans will teleshop for their groceries.

The International Shopping Experience

In addition to being convenient, the Internet provides the most diverse shopping on the planet. Whether you frequent bargain basements or scour foreign markets for the expensive and the exotic, you'll find a wide selection of trinkets and treasures online. Plus, the Internet lets consumers around the world easily purchase items they can't get in their own countries.

At Bazar.net, shoppers can find gifts, jewelry, home accessories, and "a wide variety of the finest Persian foods."

Brazilian music is the fare at Art On Line. Here you can order CDs by some of Brazil's best modern and traditional musical artists, plus music intructional videos.

Merchant sites hoping to build a worldwide customer base often feature multilingual pages, and accept payment in multiple currencies and a variety of payment methods. And the Web is an especially friendly place for window-shopping: you can browse all you like, at any hour of the day or night, without feeling pressured to buy.

Confronting the Fear of Fraud

Even if you do run into trouble with online purchases, most major credit card companies won't hold their cardholders responsible for misuse by a retailer. In the U.S., at least, the maximum amount that victims of credit card fraud can be charged by law is US$50. Montgomery advises online shoppers who don't receive a product or service they paid for by credit card to call their credit card company and explain the situation. Usually, consumers will receive an automatic credit to their account.

Most Internet fraud can be traced to "one-of-a-kind business and investment opportunities" similar to the ones advertised on late-night television. When considering a purchase, consumers should use the same precautions on the Internet as they would on the telephone. Just as you wouldn't give out your name and telephone number to someone you just met on the street, you shouldn't give out personal information, addresses, phone numbers, or e-mail addresses until you're certain about the legitimacy of the business. Online merchants often list their addresses and phone numbers on their Web sites: a quick phone call to the merchant will often dispel your concerns.

"But just because you've never heard of a product or service, that doesn't necessarily make the seller a crook," "Some of the smaller 'boutiques' are great places to find a good deal, cool product, or valuable service. One of the best things about the Web is that it gives talented, hard-working people who don't happen to be rich a chance to be noticed and competitive in the marketplace."

Still, even if you purchase from an honest merchant, canceling or returning an order can be problematic. Consumer advocate Phillip Underhill simplifies the process with Cancel-it!, an online service that automatically cancels online orders for products and services, and even removes your name from marketing e-mail lists with a single e-mail. Shoppers can simply fill out a form with all the necessary information most businesses require to cancel a service, and click "Send". Says Underhill, who launched the service after battling for nearly 10 months to get an Internet service provider to cancel his service, "Point-click-cancel should be just as easy as point-click-purchase."

Shopping Smart

Though most merchant Web sites are fairly self-explanatory, there are a few rules that Internet consumers should keep in mind.

Look for information about the company and the people involved (most merchant sites have an "About Us" section). If you feel at all uncomfortable about the site, search the Web for another merchant who offers similar products or services.

Make sure the merchant has clearly posted information regarding shipping and returns policies so you know exactly what to do if you aren't completely satisfied. Check for any money-back guarantees.

Don't submit your credit card information unless you're certain the site is a secure transaction site. (Look for the icon.)

Fill out online order forms slowly, and double-check your order, address, phone number, and credit card information on the online order form. Print a copy of the form before sending your order. Having a hard copy of the actual information sent to the shop may prove useful for tracking orders or making returns.

Write down any online order confirmation numbers.

Comparison-shop. What you find in one virtual store may cost significantly less in another.

Links:

MasterCard

Microsoft Security Advisory

Search Engines Tutorial

Visa