Shopping online provides a benefit to both consumers and businesses but can also have its risks. Consumers get the ease of shopping at any time and from anywhere, provided they have an internet connection but also need to be aware of the risks involved with online transactions and their personal information. Businesses can benefit by being able to find the best deals on the global market for the materials necessary to manufacture their products. There are many different types of online shopping options such as E-tail stores, cybermalls, online clearinghouses, and online auctions or marketplaces. According to an article on Yahoo! news, “94% of shopping happens in stores, but 90% of shoppers make their buying decision based on online research.” [1] This statistic has prompted Wishpond to launch an online shopping platform called BridgeConnect “which enables retailers to easily import & publish product data for greater online visibility.” [1] This is extremely beneficial to both consumers and retailers. Consumers can find product information, reviews and compare prices, and make purchases from social websites such as Facebook, and also from mobile applications. The benefits that retailers receive through this online shopping platform are numerous. Retailers can now start a Facebook store and start selling their products via this social network importing their inventory from their POS (point-of-sale) system, take data from their websites and publish this product data on search engines such as Google Product Search, and publish inventory and product information to mobile apps through product listings on marketplaces such as Ebay. ReatilConnect seems like it will make online shopping easier for consumers because product information will be accessible through many online channels and also make online product promotion easier for retailers since “retailers can launch a richly-featured Facebook store in 20 minutes, complete with their product inventory.” [1]
Although online shopping has its benefits, it has also opened up many consumers and businesses alike to credit card fraud and identity theft. Credit card fraud and identity theft cases have been on the rise as online shopping becomes more popular. “One online security report points out that more than 63% of shoppers jumped ship on online purchases because of security and trust concerns.” [2] To address these issues companies such as McAfee, buySAFE and TrustE offer retailers trust seals or badges which make consumers feel safer about proceeding with online purchases at checkout. A trust seal or a badge is service specific which means that there are different seals or badges depending on the security service being provided. Retailers can have seals or badges from companies such as McAfee or buySAFE for services such as promising the buyers privacy of personal data or ensuring that a website is hacker proof. With a product such as McAfee Secure, online retailers receive a daily scan of their site to detect hacker vulnerabilities. [3] I think services like this are extremely important in this day in age. We do so many transactions online and provide personal information through online portals all of the time and it is extremely important that businesses understand and implement technologies that will protect their consumers. So while online shopping provides many benefits, the risks associated with online shopping can far outweigh those benefits so it is extremely important for online retailers to consider consumer protection when setting up their online shopping platforms.
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[1] “ RetailConnect Bridges Gap Between Retailers And Online Shoppers.” Yahoo! News. 29 June 2011. Web. 19 July 2011. http://news.yahoo.com/retailconnect-bridges-gap-between-retailers-online-shoppers-140739739.html.
[2] “ Dealing with Shopping Cart Abandonment? Customers Unsure They Can Trust Your Business? Consider Trust Seal Provider KikScore.” Business Insider Tools Contributors. 20 June 2011. Web. 19 July 2011. http://www.businessinsider.com/dealing-with-shopping-cart-abandonment-customers-unsure-they-can-trust-your-business-consider-trust-seal-provider-kikscore-2011-6.
[3] McAfee Secure for Website Services. McAfee Inc. 2011. Web 19 July 2011. http://www.mcafeesecure.com/us/products/mcafee_secure.jsp?tab=3 .
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