Online Shopping

Many mail order companies have websites on the Internet where the goods they sell can be viewed, ordered and paid for. Many other retailers with shops in shopping areas have websites showing the range of what they offer for sale. These websites also allow consumers to shop online. It is not expensive to set up online shopping facilities. The retailer will need a computer, a modem, a web browser (a software package that allows the user to view pages on the web), an Internet account with a service provider, a telephone line or broadband. Some websites offer an interactive service where potential buyers can ask questions about the products. Customers can order goods direct from online retailers in any part of the world. Payment is made using credit cards and goods are sent by post or by courier direct to the customer after payment has been confirmed.

The increase in online shopping has seen the growth of delivery or courier companies who aim to deliver goods as quickly as possible. Many supermarket/hypermarket chains provide online food shopping. In the UK, Tesco Has an Internet business, tesco.com, the world's biggest online grocery operator. Its delivery vehicles carry a slogan 'you shop, we drop'. This kind of business marks the return of the grocers' boy of a hundred years ago. Instead of the boy on the bicycle, Tesco has over 700 white vans delivering all over the country to over one million registered users. Most of these shoppers are not regular users but they tend to spend more than shoppers who visit the stores. Instead of supply from regional warehouses, customers are supplied from the shelves of existing stores. This leads to faster delivery. Shopping online for food and household goods is becoming an increasingly important area of Tesco's business and helps this supermarket chain to maintain its position as the UK's leading food retailer with over 30 per cent of the market.

The development of online shopping services such as Amazon, Craigslist and shopping.net is making it possible for people to find and buy precisely what they want, often for a reasonable price. These shopping services are free and allow consumers to save time and money when shopping online. They do not sell products directly but provide independent shopping search, information and price comparison allowing the consumer to compare prices and find the best deals and cheapest prices. They enable the consumer to search through thousands of online shops to find the suitable products. Many consumers are also interested in selling second-use goods and many consumers are interested in buying them online.

The growing importance of Internet shopping has arisen because more and more people own computers and use the Internet as part of their daily lives. Many people have little time to go shopping and may dislike crowded shopping areas. They prefer to 'surf the net' to see the choice of goods and suppliers available. This trend is likely to continue. On the other hand, 'going shopping' is a national pastime in some countries such as Hong Kong and Dubai. Many people would not like to be deprived of the opportunity to visit shops in a shopping center or town. In some countries, going shopping is a necessity as facilities for home shopping are very limited and very few people have access to computers.

Reasons to Choose Internet Shopping

Many companies wish to expand their markets without incurring the expense of additional shop space and catalogs. Advertising using the Internet is much cheaper than other forms of advertising. The competitors offer home shopping so they must do the same. Many people have access to computers and to the Internet. The Internet is suitable for displaying a large range of products and services. Many people have less time to go shopping and prefer online shopping. There may be lack of transport in some remote areas whereas the Internet may be available. Some of the difficulties of Internet shopping have been overcome or reduced, e.g. poor delivery services, credit card fraud etc.

The retailer's website or 'shop' is open 24 hours a day, seven days a week to customers all over the world. A website need not be expensive to set up. As information is processed electronically, there are likely to be fewer errors compared to manual systems. The retailer can process the order, arrange delivery and process payment automatically. Using a website enables the quick exchange of information between the retailer and the customer using email. Small retail businesses are able to establish themselves quite quickly in the market. If the online retailer only operates online, he or she is saved the high cost of running a retail shop. Online retailers can operate from anywhere as customers generally do not visit them.

As has already been mentioned, shopping online may be more convenient, quicker and cheaper than visiting shops. Goods and services can be bought from any part of the world. The consumer can 'shop' at any time and can pay using credit card. Specialized services such as the E-bay auction website have arisen with the development of online shopping. The consumer can also take advantage of special offers provided online. Airlines often offer reduced fares to those who book online rather than using telephone or going to a travel agent.

Drawbacks of Online Shopping 

Some consumers are resistant to online shopping and thus possible sales, particularly impulse buying, are missed. Customers no longer visit the shop so the retailer cannot promote the goods directly. Websites may be difficult to locate. With a considerable choice of websites, the consumer needs to be tempted by an attractive website which requires careful designing. Websites are accessible all over the world. Care must be taken that they do not offend certain cultures and are easy to understand. Once the order has been placed, it is important that the processing of that order is efficient to make sure that the consumer is satisfied. Just as with mail order, some of the items ordered may not be satisfactory and may be returned. Some may get lost or not be delivered.

Many of the disadvantages of online shopping to the consumer are the same as those experienced by the mail order shopper. There may be delays in receiving the goods ordered. Goods may not match the description or picture given, so goods may need to be returned. There may also be difficulties in returning goods and extra charges such as delivery charges. There are, however, other difficulties. It may be difficult to obtain after-sales service for complex products such as cameras or computers. It may not be possible to verify the authenticity of the online retailer and so the consumer may become a victim of fraud. Payment must be made before the goods are received. Reputable suppliers will not take payment until the goods are dispatched. Many consumers are wary of giving credit card details using the Internet because of the dangers of fraud and misuse of the details given. Many sellers have tried to address this problem with the introduction of passwords and security checks but Internet fraud is still a problem. Many consumers use only well-known companies and purchase using a credit card with very low credit limit.