| | | | | Pew Project, it was reported that 75% of those |
| What Do People Dislike About Online Shopping? | | | | surveyed were concerned about both financial and |
| In an industry where double-digit growth has | | | | personal information being secure. The other area |
| previously been the norm, it would seem hard to | | | | of concern was regarding the amount or the way |
| imagine finding much dissatisfaction amongst its | | | | which online shopping information was presented, |
| consumers. Online shopping, one would gather, | | | | with 58% stating they found that information to |
| offers benefits that would attract anyone who | | | | be overwhelming. The Privacy Rights Clearing |
| has a computer with access to an internet | | | | House, a report titled “Online Shopping Tips: |
| connection. Although not everyone has that | | | | Ecommerce and You” cited the number one |
| access (in the United States over 50% of the US | | | | concern of online shoppers as a combination of |
| population is now connected to the Internet), | | | | Pew research piece. Those online shoppers in the |
| those that do are not 100% convinced that online | | | | Privacy Rights piece declared that not only should |
| shopping is the way to go. In finding out about the | | | | the payment and product process be secure, but |
| why, what and how of online shopping, you may | | | | that both the financial and purchase information be |
| be surprised by why people shop online, what | | | | simplified, not in any way overwhelming. |
| they dislike about shopping online, and how online | | | | If Ecommerce growth will be fueled to some |
| shopping might change to continue growing in the | | | | degree by increased spending of current online |
| future as it has in the past. | | | | buyers, then attracting new online shoppers |
| Online buyers are shifting a greater share of their | | | | seems to be a key factor in the equation of |
| purchases from the traditional brick and mortar | | | | continued growth. However, although online |
| stores to the web in search of more | | | | shoppers agree to the benefits (convenience, |
| convenience, cost savings, and broader product | | | | savings, selection), most also agree on the |
| selection. These three “whys” of online | | | | detractions (financial and personal information |
| shopping were found to be consistent throughout | | | | security, the purchase process). Let's take a look |
| the research for this article. According to an | | | | at some of the numbers to see how change |
| October 2008 report by Forrester Research, in a | | | | could affect growth. If we look back at the |
| survey of 1000 adult online buyers, 48% expect | | | | Forrester Research report of October 2008, we |
| to find the best values online (that's up from 41% | | | | find some of those interesting numbers. |
| in 2007). In a report from the Pew Internet and | | | | Forty-seven percent of online shoppers plan to |
| American Life Project entitled “Online | | | | spend the same amount in the next twelve |
| Shopping:Convenient but Risky”, the whys | | | | months. Further stated, 27% plan to spend more |
| were similar. Of the people surveyed for the | | | | and 26% plan to spend less money. By my math, |
| report, 78% stated convenience while another | | | | that adds up to basically flat growth. The US |
| 68% cited saving time as the reasons for | | | | Department of Commerce projects the 2008 |
| shopping online. | | | | growth for online shopping to be about 7% (the |
| Further evidence of the reasons why people shop | | | | DOC tracked the industry's growth rate at 20% |
| online was reported in June 2008 by ERetail in | | | | plus since 1999). Additionally, eMarketer reports |
| their “Top 100 Online Retail Index”. The | | | | the 2008 holiday season (November & |
| major factors for shopping online were | | | | December) grew at about 10%. Combining the |
| financial(26%), gas prices(16%) and the economic | | | | DOC and eMarketer findings, we do see some |
| outlook(14%). Additionally, 34% of those | | | | growth but not at near the double-digit rates of |
| surveyed said they planned on spending more | | | | years past. |
| money shopping online. If financial and the | | | | So what's an industry to do? Referring again to |
| economic outlook are about savings, then gas | | | | Pew finds an interesting analysis. Pew measured |
| prices (not driving to the store?) is about savings | | | | the combined effect of making non-online |
| and convenience. And of those planning to spend | | | | shoppers comfortable with some of the hesitancy |
| 34% more, they probably have found out about | | | | of shopping online. The data gathered reflected |
| the broad product selection. | | | | financial/personal information, the purchase |
| If the “whys” of people shopping online | | | | process, along with the previous “whys” |
| seemed consistent, then so will the | | | | regarding savings, convenience and selection. |
| “whats” of things that people dislike. It's | | | | Improving the confidence of non-online shoppers |
| not surprising that in an industry with such | | | | in these areas could have an overall impact of as |
| dramatic growth (more on that later), technology | | | | much as 12% growth. If you consider that some |
| glitches and process management have combined | | | | of the drop-off in growth may be due in part to |
| to create some dissatisfaction. That those same | | | | economic concerns around the world, then |
| areas of dissatisfaction are consistent tells us that | | | | sustained ecommerce growth seems very much |
| those areas can be improved if not totally | | | | a potential outcome. |
| eliminated. | | | | In closing, because online shopping is such a |
| In a Nielsen Consumer Report/Global Survey | | | | dynamic industry, the technical and processing |
| conducted in February 2008, the top security | | | | aspects will only continue to improve. As those |
| concerns regarding online shopping were reported. | | | | two areas seem to be at the root of any |
| The first concern was not receiving the item(s) | | | | dissatisfaction with online shopping, those |
| purchased or receiving different item(s) than what | | | | improvements are probably in place and taking |
| was purchased. The second security concern was | | | | affect. Making online shopping a better experience |
| that personal information would be sold to a third | | | | benefits all of us – those who provide it and |
| party. Lastly, the third concern was financial | | | | those who use it. |
| information being stolen. Referring back to the | | | | |