THE
RELEVANCE OF COMPUTER IN ONLINE SHOPPING
Introduction
Online shopping or online
retailing is a form of electronic
commerce which allows consumers to directly buy goods or services
from a seller over the Internet
using a web browser. Alternative
names are: e-web-store, e-shop, e-store, Internet shop, web-shop, web-store,
online store, and virtual store. An online shop evokes the physical analogy of
buying products
or services at a bricks-and-mortar
retailer or shopping center; the
process is called business-to-consumer (B2C) online shopping. In the case where
a business buys from another business, the process is called
business-to-business (B2B) online shopping. The largest of these online
retailing corporations are Alibaba,
Amazon.com and eBay.[1] Retail success is
no longer all about physical stores, this is evident because of the increase in
retailers now offering online store interfaces for consumers. With the growth
of online shopping, comes a wealth of new market footprint coverage
opportunities for stores that can appropriately cater to offshore market
demands and service requirements.
We
can use the Internet to get ideas about different choices, stores and prices
before you buy online or choose which shops to visit.
Shopping
online is one of the most popular uses of the Internet and it is easy to see why:
you
can buy almost anything online, you can find out about goods and services from
the comfort of your own home, you can compare things online.
Goods
are often cheaper when you buy online, although you may have to pay a delivery
charge.
All
of the major retailers have online shopping websites and there are many
specialist Internet retailers who supply goods by post.
Lots
of small independent businesses use the Internet to market their goods to the
public from sites all round the UK and overseas.
History
The first World Wide Web server and browser,
created by Tim Berners-Lee in 1990,
opened for commercial use in 1991.[2] Thereafter, subsequent technological innovations
emerged in 1994: online banking, the opening of an online pizza shop by Pizza Hut,[2] Netscape's SSL v2 encryption standard
for secure data transfer, and Intershop's first online
shopping system. Immediately after, Amazon.com launched its online shopping site in 1995 and eBay
was also introduced in 1995.[2]
Customers
Online customers must have access to the
Internet and a valid method of payment in order to complete a transaction.
Generally, higher levels of education, and
personal income correspond to more favorable perceptions of shopping online.
Increased exposure to technology also increases the probability of developing
favorable attitudes towards new shopping channels.[3]
In a December 2011 study, Equation Research
surveyed 1,500 online shoppers and found that 87% of tablet owners made online
transactions with their tablet devices during the early Christmas shopping
season.[4]
Logistics
Consumers find a product of interest by
visiting the website of the retailer directly or by searching among alternative
vendors using a shopping search engine.
Once a particular product has been found on
the website of the seller, most online retailers use shopping cart software to
allow the consumer to accumulate multiple items and to adjust quantities, like
filling a physical shopping cart or basket in a conventional store. A
"checkout" process follows (continuing the physical-store analogy) in
which payment and delivery information is collected, if necessary. Some stores
allow consumers to sign up for a permanent online account so that some or all
of this information only needs to be entered once. The consumer often receives
an e-mail confirmation once the transaction is complete.
Less sophisticated stores may rely on
consumers to phone or e-mail their orders (although full credit card numbers,
expiry date, and Card Security Code,[5] or bank account and routing number should not be
accepted by e-mail, for reasons of security).
Payment
Online shoppers commonly use a credit card or a PayPal account in order to make payments.
However, some systems enable users to create accounts and pay by alternative
means, such as:
Some online shops will not accept
international credit cards. 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.g. letting the consumer know their credit card was
declined before they log off), or may be done later as part of the fulfillment
process.
Product
delivery
Once a payment has been accepted, the goods
or services can be delivered in the following ways:
- Downloading/Digital distribution:[8] The method often used for digital media
products such as software, music, movies, or images.
- 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.
- Printing out, provision of a code
for, or e-mailing of such items as admission tickets and
scrip (e.g., gift certificates and coupons). The tickets,
codes, or coupons may be redeemed at the appropriate physical or online
premises and their content reviewed to verify their eligibility (e.g.,
assurances that the right of admission or use is redeemed at the correct
time and place, for the correct dollar amount, and for the correct number
of uses).
- Shipping: The product is shipped to a
customer-designated address.
- Will call, lCOBO (in
Care Of Box Office), or "at the door" pickup: 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 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.[citation needed]
- A high-end solution can be bought or rented as a
stand-alone program or as an addition to an enterprise resource
planning program. 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.[citation needed]
- Open source shopping
cart packages include advanced platforms such as Interchange, and
off-the-shelf solutions such as Magento, osCommerce, PrestaShop, Shopify, Zen Cart.[9]
- 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.[citation needed]
Design
Customers are attracted to online shopping
not only because of high levels of convenience, but also because of broader selections,
competitive pricing, and greater access to information. Business organizations seek
to offer online shopping not only because it is of much lower cost compared to
bricks and mortar stores, but also because it offers access to a worldwide
market, increases customer value, and builds sustainable capabilities.
Information
load
Designers of online shops are concerned with
the effects of information load. Information load is a product of the spatial
and temporal arrangements of stimuli in the web store. Compared with
conventional retail shopping, the information environment of virtual shopping
is enhanced by providing additional product information such as comparative
products and services, as well as various alternatives and attributes of each
alternative, etc.[14]
Two major dimensions of information load are
complexity and novelty.[15] Complexity refers to the number of different elements
or features of a site, often the result of increased information diversity.
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.[14]
Consumer
needs and expectations
A successful web store is not just a good
looking website with dynamic technical features, listed in many search
engines.[16] In addition to disseminating information, it is
also about building a relationship with customers and making money.
Businesses often attempt to adopt online
shopping techniques without understanding them and/or without a sound business
model; oftentimes, businesses produce web stores that support the
organizations' culture and brand name without satisfying consumer expectations.
User-centered design is critical. Understanding the customer's wants and needs
is essential. Living up to the company's promises gives customers a reason to
come back and meeting their expectations gives them a reason to stay. It is
important that the website communicates how much the company values its customers.[16]
Customer needs and expectations are not the
same for all customers. Age, gender, experience and culture are all important
factors. For example, Japanese cultural norms may lead users there to feel
privacy is especially critical on shopping sites and emotional involvement is
highly important on financial pensions sites.[12] Users with more online experience focus more on the
variables that directly influence the task, while novice users focus on
understanding the information.[17]
To increase online purchases, businesses must
expend significant time and money to define, design, develop, test, implement,
and maintain the web store.[16] It is easier to lose a customer than to gain one.
Even a "top-rated" website will not succeed if the organization fails
to practice common etiquette such as returning e-mails in a timely fashion,
notifying customers of problems, being honest, and being good stewards of the
customers' data.[16] Because it is so important to eliminate mistakes
and be more appealing to online shoppers, many web shop designers study
research on consumer expectations.[18]
User
interface
The most important factors determining
whether customers return to a website are ease of use and the presence of
user-friendly features. Usability testing is important for finding
problems and improvements in a web site. 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.[19]
Market
share
E-commerce B2C product sales totaled $142.5 billion,[4] representing about 8% of retail product sales in the
United States.[20] The $26 billion worth of clothes sold online
represented about 13% of the domestic market,[21] and with 72% of women looking online for apparel,
it has become one of the most popular cross-shopping categories.[22] Forrester Research
estimates that the United States online retail industry will be worth $279
billion in 2015.[23] There were 242 million people shopping on-line in
China in 2012.[24]
For developing countries and low-income
households in developed countries, adoption of e-commerce in place of or in
addition to conventional methods is limited by a lack of affordable Internet
access.
ADVANTAGES
Convenience
Online stores are usually available 24 hours
a day, and many consumers have Internet access both at work and at home. Other
establishments such as internet cafes and schools provide internet access as
well. In contrast, visiting a conventional retail store requires travel and
must take place during business hours.
In the event of a problem with the item
(e.g., the product was not what the consumer ordered, the product was not
satisfactory), consumers are concerned with the ease of returning an item in
exchange for either the correct product or a refund. 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.com includes labels for free return shipping, and does
not charge a restocking fee, even for returns which are not the result of
merchant error. (Note: 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 2000).[25]
Information
and reviews
Online stores must describe products for sale
with text, photos, and multimedia files, whereas in a physical retail store,
the actual product and the manufacturer's packaging will be available for
direct inspection (which might involve a test drive, fitting, or other
experimentation).
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.
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. Merchants also risk fraudulent purchases 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 2000s has
prompted some U.S. states to require disclosure to consumers when this happens.
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 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.
- Before buying from a new company, evaluate the website
by considering issues such as: the professionalism and user-friendliness
of the site; whether or not the company lists a telephone number and/or
street address along with e-contact information; whether a fair and
reasonable refund and return policy is clearly stated; and whether there
are hidden price inflators, such as excessive shipping and handling
charges.
- Ensuring that the retailer has an acceptable privacy
policy posted. 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. If it does the address
on the credit card information entry screen will start with
"HTTPS".
- Using strong passwords, without personal information.
Another option is a "pass phrase," which might be something
along the lines: "I shop 4 good a buy!!" These are difficult to
hack, and provides a variety of upper, lower, and special characters and
could be site specific and 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. Whenever users purchase a
product, they are required to put in their credit card information and
billing/shipping address. If the website is not secure, customer information
can be accessible to anyone who knows how to obtain it. 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 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 be 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. Some services such as the Canadian based Wishabi attempts to
include estimates of these additional cost,[26] but nevertheless, the lack of general full cost
disclosure remains a concern.
Privacy
Privacy of personal information is a
significant issue for some consumers. Many consumers wish to avoid spam and
telemarketing which could result from supplying contact information to an
online merchant. In response, many merchants promise to not use consumer
information for these purposes,
Many websites keep track of consumer shopping
habits in order to suggest items and other websites to view. Brick-and-mortar
stores also collect consumer information. Some ask for a shopper's address and
phone number at checkout, though consumers may refuse to provide it. Many
larger stores use the address information encoded on consumers' credit cards
(often without their knowledge) to add them to a catalog mailing list. This
information is obviously not accessible to the merchant when paying in cash.
Websites
for online shopping:
1.
amazon.com
2.
bebe.com
3.
macys.com
4.
alibaba.com
CONCLUSION
In conclusion, having access to online shopping has truly revolutionized
and influenced our society as a whole. This use of technology has opened new
doors and opportunities that enable for a more convenient lifestyle today.
Variety, quick service and reduced prices were three significant ways in which
online shopping influenced people from all over the world. However, this
concept of online shopping led to the possibilities of fraud and privacy
conflicts. Unfortunately, it has shown that it is possible for criminals to
manipulate the system and access personal information. Luckily, today with the
latest features of technology, measures are being taken in order to stop
hackers and criminals from inappropriately accessing private databases. Through
privacy and security policies, website designers are doing their best to put an
end to this unethical practice. By doing so, society will continue to depend
upon online shopping, which will allow it to remain a tremendous success in the
future.
References:
3.
http://ason.gmu.edu/~iepamino/IT103/Conclusion.html
