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Some require both the purchaser's billing and shipping address to be in the same country as the online shop's base of operation. Other online shops allow customers from any country to send gifts anywhere. The financial part of a transaction may be processed in real time e. Product delivery Once a payment has been accepted, the goods or services can be delivered in the following ways.
For physical items: The product is shipped to a customer-designated address. Drop shipping: The order is passed to the manufacturer or third-party distributor, who then ships the item directly to the consumer, bypassing the retailer's physical location to save time, money, and space.
In-store pick-up: The customer selects a local store using a locator software and picks up the delivered product at the selected location. This is the method often used in the bricks and clicks business model.
For digital items or tickets: Printing out, provision of a code for, or e-mailing of such items as admission tickets and scrip e.
The tickets, codes, or coupons may be redeemed at the appropriate physical or online premises and their content reviewed to verify their eligibility e. The patron picks up pre-purchased tickets for an event, such as a play, sporting event, or concert, either just before the event or in advance. With the onset of the Internet and e-commerce sites, which allow customers to buy tickets online, the popularity of this service has increased.
Shopping cart systems Simple shopping cart systems allow the off-line administration of products and categories. The shop is then generated as HTML files and graphics that can be uploaded to a webspace. The systems do not use an online database. It is usually installed on the company's web server and may integrate into the existing supply chain so that ordering, payment, delivery, accounting and warehousing can be automated to a large extent. Other solutions allow the user to register and create an online shop on a portal that hosts multiple shops simultaneously from one back office.
Open source shopping cart packages include advanced platforms such as Interchange, and off-the-shelf solutions such as Magento , osCommerce , WooCommerce , PrestaShop , and Zen Cart. Commercial systems can also be tailored so the shop does not have to be created from scratch. By using an existing framework, software modules for various functionalities required by a web shop can be adapted and combined. Information load is a product of the spatial and temporal arrangements of stimuli in the web store.
Novelty involves the unexpected, suppressed, new, or unfamiliar aspects of the site. The novelty dimension may keep consumers exploring a shopping site, whereas the complexity dimension may induce impulse purchases.
It must build relationships with customers to make money. The report also suggests that a website must leave a positive impression on the customers, giving them a reason to come back. Dyn , an Internet performance management company conducted a survey on more than consumers across 11 countries in North America , Europe , Middle-East and Asia and the results of the survey are as follows: Online retailers must improve the website speed Online retailers must ease consumers fear around security These concerns majorly affect the decisions of almost two thirds of the consumers.
The most important factors determining whether customers return to a website are ease of use and the presence of user-friendly features. Methods for evaluating usability include heuristic evaluation , cognitive walkthrough, and user testing. Each technique has its own characteristics and emphasizes different aspects of the user experience. For example, Best Buy , the largest retailer of electronics in the U. The survey found shopping began at amazon.
It estimated 75 million Americans subscribe to Amazon Prime and 35 million more use someone else's account. Advantages Convenience Online stores are usually available 24 hours a day, and many consumers in Western countries have Internet access both at work and at home. Other establishments such as Internet cafes, community centers and schools provide internet access as well.
In contrast, visiting a conventional retail store requires travel or commuting and costs such as gas, parking, or bus tickets, and must usually take place during business hours. Delivery was always a problem which affected the convenience of online shopping. However to overcome this many retailers including online retailers in Taiwan brought in a store pick up service.
This now meant that customers could purchase goods online and pick them up at a nearby convenience store, making online shopping more advantageous to customers. Consumers may need to contact the retailer, visit the post office and pay return shipping, and then wait for a replacement or refund. Some online companies have more generous return policies to compensate for the traditional advantage of physical stores.
For example, the online shoe retailer Zappos. In the United Kingdom, online shops are prohibited from charging a restocking fee if the consumer cancels their order in accordance with the Consumer Protection Distance Selling Act Some online stores provide or link to supplemental product information, such as instructions, safety procedures, demonstrations, or manufacturer specifications.
Some provide background information, advice, or how-to guides designed to help consumers decide which product to buy. Some stores even allow customers to comment or rate their items. There are also dedicated review sites that host user reviews for different products. Reviews and even some blogs give customers the option of shopping for cheaper purchases from all over the world without having to depend on local retailers. In a conventional retail store, clerks are generally available to answer questions.
Some online stores have real-time chat features, but most rely on e-mails or phone calls to handle customer questions. Even if an online store is open 24 hours a day, seven days a week, the customer service team may only be available during regular business hours. Price and selection One advantage of shopping online is being able to quickly seek out deals for items or services provided by many different vendors though some local search engines do exist to help consumers locate products for sale in nearby stores.
Search engines, online price comparison services and discovery shopping engines can be used to look up sellers of a particular product or service. Shipping costs if applicable reduce the price advantage of online merchandise, though depending on the jurisdiction, a lack of sales tax may compensate for this.
Shipping a small number of items, especially from another country, is much more expensive than making the larger shipments bricks-and-mortar retailers order. Some retailers especially those selling small, high-value items like electronics offer free shipping on sufficiently large orders.
Another major advantage for retailers is the ability to rapidly switch suppliers and vendors without disrupting users' shopping experience. Disadvantages Fraud and security concerns Given the lack of ability to inspect merchandise before purchase, consumers are at higher risk of fraud than face-to-face transactions. When ordering merchandise online, the item may not work properly, it may have defects, or it might not be the same item pictured in the online photo.
Merchants also risk fraudulent purchases if customers are using stolen credit cards or fraudulent repudiation of the online purchase. However, merchants face less risk from physical theft by using a warehouse instead of a retail storefront. Secure Sockets Layer SSL encryption has generally solved the problem of credit card numbers being intercepted in transit between the consumer and the merchant.
However, one must still trust the merchant and employees not to use the credit card information subsequently for their own purchases, and not to pass the information to others.
Also, hackers might break into a merchant's web site and steal names, addresses and credit card numbers, although the Payment Card Industry Data Security Standard is intended to minimize the impact of such breaches. Identity theft is still a concern for consumers. A number of high-profile break-ins in the s has prompted some U.
Computer security has thus become a major concern for merchants and e-commerce service providers, who deploy countermeasures such as firewalls and anti-virus software to protect their networks. Phishing is another danger, where consumers are fooled into thinking they are dealing with a reputable retailer, when they have actually been manipulated into feeding private information to a system operated by a malicious party. Denial of service attacks are a minor risk for merchants, as are server and network outages.
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. The purpose of these seals is to increase the confidence of online shoppers. However, the existence of many different seals, or seals unfamiliar to consumers, may foil this effort to a certain extent.
A number of resources offer advice on how consumers can protect themselves when using online retailer services. These include: Sticking with well-known stores, or attempting to find independent consumer reviews of their experiences; also ensuring that there is comprehensive contact information on the website before using the service, and noting if the retailer has enrolled in industry oversight programs such as a trust mark or a trust seal.
For example, note if the retailer does not explicitly state that it will not share private information with others without consent. Ensuring that the vendor address is protected with SSL see above when entering credit card information.
Using strong passwords which do not contain personal information such as the user's name or birthdate. Another option is a "pass phrase," which might be something along the lines: These passwords can be site specific and may be easy to remember.
Although the benefits of online shopping are considerable, when the process goes poorly it can create a thorny situation. A few problems that shoppers potentially face include identity theft, faulty products, and the accumulation of spyware. Most large online corporations are inventing new ways to make fraud more difficult.
However, criminals are constantly responding to these developments with new ways to manipulate the system. Even though online retailers are making efforts to protect consumer information, it is a constant fight to maintain the lead. It is advisable to be aware of the most current technology and scams to protect consumer identity and finances. Product delivery is also a main concern of online shopping. Most companies offer shipping insurance in case the product is lost or damaged.
Some shipping companies will offer refunds or compensation for the damage, but this is up to their discretion. Lack of full cost disclosure The lack of full cost disclosure may also be problematic. While it may be easy to compare the base price of an item online, it may not be easy to see the total cost up front. Additional fees such as shipping are often not visible until the final step in the checkout process. The problem is especially evident with cross-border purchases, where the cost indicated at the final checkout screen may not include additional fees that must be paid upon delivery such as duties and brokerage.
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Some require both the purchaser's billing and shipping address to be in the same country as the online shop's base of operation. Other online shops allow customers from any country to send gifts anywhere. The financial part of a transaction may be processed in real time e.