1/3/2015 OnlineshoppingWikipedia,thefreeencyclopedia

Onlineshopping
FromWikipedia,thefreeencyclopedia

Onlineshoppingoreshoppingisaformofelectroniccommercewhichallowsconsumerstodirectly
[Link]:eweb
store,eshop,estore,Internetshop,webshop,webstore,onlinestore,onlinestorefrontandvirtual
[Link](ormcommerce)describespurchasingfromanonlineretailer'smobile
optimizedonlinesiteorapp.

Anonlineshopevokesthephysicalanalogyofbuyingproductsorservicesatabricksandmortar
retailerorshoppingcentertheprocessiscalledbusinesstoconsumer(B2C)[Link]
casewhereabusinessbuysfromanotherbusiness,theprocessiscalledbusinesstobusiness(B2B)
[Link],[Link],and
eBay.[1][Link]
[Link],comes
awealthofnewmarketfootprintcoverageopportunitiesforstoresthatcanappropriatelycaterto
offshoremarketdemandsandservicerequirements.

Contents
1History
2Internationalecommercestatistics
3Customers
4Logistics
5Payment
6Productdelivery
7Shoppingcartsystems
7.1onlinegiftshops
8Design
8.1Informationload
8.2Consumerneedsandexpectations
8.3Userinterface
9Marketshare
10Advantages
10.1Convenience
10.2Informationandreviews
10.3Priceandselection
11Disadvantages
11.1Fraudandsecurityconcerns
11.2Lackoffullcostdisclosure
11.3Privacy
12Productsuitability
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13Aggregation
14Impactofreviewsonconsumerbehaviour
15Seealso
16References

History
EnglishentrepreneurMichaelAldrichinventedonlineshopping
[Link]
timetransactionprocessingcomputerviaadomestictelephone
[Link],themodifieddomesticTV
technologywithasimplemenudrivenhumancomputer
interface,wasa'new,universallyapplicable,participative
communicationmediumthefirstsincetheinventionofthe
telephone.'Thisenabled'closed'corporateinformationsystems
tobeopenedto'outside'correspondentsnotjustfortransaction
processingbutalsoforemessagingandinformationretrievaland
MichaelAldrich,pioneerofonline
dissemination,laterknownasebusiness.[2]Hisdefinitionofthe shoppinginthe1980s.
newmasscommunicationsmediumas'participative'[interactive,
manytomany]wasfundamentallydifferentfromthetraditional
definitionsofmasscommunicationandmassmediaandaprecursortothesocialnetworkingonthe
Internet25yearslater.

InMarch1980hewentontolaunchRedifon'sOfficeRevolution,whichallowedconsumers,customers,
agents,distributors,suppliersandservicecompaniestobeconnectedonlinetothecorporatesystems
andallowbusinesstransactionstobecompletedelectronicallyinrealtime.[3]

Duringthe1980s[4]hedesigned,manufactured,sold,installed,maintainedandsupportedmanyonline
shoppingsystems,usingvideotextechnology.[5]Thesesystemswhichalsoprovidedvoiceresponseand
handprintprocessingpredatetheInternetandtheWorldWideWeb,theIBMPC,andMicrosoftMS
DOS,andwereinstalledmainlyintheUKbylargecorporations.

ThefirstWorldWideWebserverandbrowser,createdbyTimBernersLeein1990,openedfor
commercialusein1991.[6]Thereafter,subsequenttechnologicalinnovationsemergedin1994:online
banking,theopeningofanonlinepizzashopbyPizzaHut,[6]Netscape'sSSLv2encryptionstandardfor
securedatatransfer,andIntershop'[Link]
theWebwaseitherbyNetMarketorInternetShoppingNetworkin1994.[7]Immediatelyafter,
Amazon.comlauncheditsonlineshoppingsitein1995andeBaywasalsointroducedin1995.[6]
Alibaba'ssitesTaobaoandTmallwerelaunchedin2003and2008,respectively.

Internationalecommercestatistics
Statisticsshowthatin2012,AsiaPacificincreasedtheirinternationalsalesover30%givingthemover
$[Link]$[Link]$[Link]
isestimatedthatAsiaPacificwillincreasebyanother30%intheyear2013puttingthemaheadbymore
thanonethirdofallglobalecommercesales.

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ThelargestonlineshoppingdayintheworldisSinglesDay,withsalesjustinAlibaba'ssitesatUS$9.3
billionin2014.[8][9]

Customers
OnlinecustomersmusthaveaccesstotheInternetandavalidmethodofpaymentinordertocompletea
transaction.

Generally,higherlevelsofeducationandpersonalincomecorrespondtomorefavorableperceptionsof
[Link]
attitudestowardsnewshoppingchannels.[10]

InaDecember2011study,EquationResearchsurveyed1,500onlineshoppersandfoundthat87%of
tabletownersmadeonlinetransactionswiththeirtabletdevicesduringtheearlyChristmasshopping
season.[11]

Logistics
Consumersfindaproductofinterestbyvisitingthewebsiteoftheretailerdirectlyorbysearching
amongalternativevendorsusingashoppingsearchengine.

Onceaparticularproducthasbeenfoundonthewebsiteoftheseller,mostonlineretailersuseshopping
cartsoftwaretoallowtheconsumertoaccumulatemultipleitemsandtoadjustquantities,likefillinga
physicalshoppingcartorbasketinaconventionalstore.A"checkout"processfollows(continuingthe
physicalstoreanalogy)inwhichpaymentanddeliveryinformationiscollected,[Link]
storesallowconsumerstosignupforapermanentonlineaccountsothatsomeorallofthisinformation
[Link]
iscomplete.

Lesssophisticatedstoresmayrelyonconsumerstophoneoremailtheirorders(althoughfullcredit
cardnumbers,expirydate,andCardSecurityCode,[12]orbankaccountandroutingnumbershouldnot
beacceptedbyemail,forreasonsofsecurity).

Payment
[Link],
somesystemsenableuserstocreateaccountsandpaybyalternativemeans,suchas:

Billingtomobilephonesandlandlines[13][14]
Cashondelivery(C.O.D.)
Cheque/Check
Debitcard
Directdebitinsomecountries
Electronicmoneyofvarioustypes
Giftcards
Postalmoneyorder
Wiretransfer/deliveryonpayment
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Invoice,especiallypopularinsomemarkets/countries,suchasSwitzerland
Bitcoinorothercryptocurrencies

[Link]'sbilling
andshippingaddresstobeinthesamecountryastheonlineshop'[Link]
allowcustomersfromanycountrytosendgiftsanywhere.

Thefinancialpartofatransactionmaybeprocessedinrealtime([Link]
creditcardwasdeclinedbeforetheylogoff),ormaybedonelateraspartofthefulfillmentprocess.

Productdelivery
Onceapaymenthasbeenaccepted,thegoodsorservicescanbedeliveredinthefollowingways:

Downloading/Digitaldistribution:[15]Themethodoftenusedfordigitalmediaproductssuchas
software,music,movies,orimages.
Dropshipping:Theorderispassedtothemanufacturerorthirdpartydistributor,whothenships
theitemdirectlytotheconsumer,bypassingtheretailer'sphysicallocationtosavetime,money,
andspace.
Instorepickup:Thecustomerselectsalocalstoreusingalocatorsoftwareandpicksupthe
[Link]
businessmodel.
Printingout,provisionofacodefor,oremailingofsuchitemsasadmissionticketsandscrip
(e.g.,giftcertificatesandcoupons).Thetickets,codes,orcouponsmayberedeemedatthe
appropriatephysicaloronlinepremisesandtheircontentreviewedtoverifytheireligibility(e.g.,
assurancesthattherightofadmissionoruseisredeemedatthecorrecttimeandplace,forthe
correctdollaramount,andforthecorrectnumberofuses).
Shipping:Theproductisshippedtoacustomerdesignatedaddress.
Willcall,lCOBO(inCareOfBoxOffice),or"atthedoor"pickup:Thepatronpicksuppre
purchasedticketsforanevent,suchasaplay,sportingevent,orconcert,eitherjustbeforethe
[Link],whichallowcustomers
tobuyticketsonline,thepopularityofthisservicehasincreased.

Shoppingcartsystems
[Link]
[Link]
anonlinedatabase.
Ahighendsolutioncanbeboughtorrentedasastandaloneprogramorasanadditiontoan
[Link]'swebserverandmay
integrateintotheexistingsupplychainsothatordering,payment,delivery,accountingand
warehousingcanbeautomatedtoalargeextent.
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Othersolutionsallowtheusertoregisterandcreateanonlineshoponaportalthathostsmultiple
shopssimultaneouslyfromonebackoffice.
OpensourceshoppingcartpackagesincludeadvancedplatformssuchasInterchange,andoffthe
shelfsolutionssuchasMagento,nopCommerce,osCommerce,Shopgate,PrestaShop,Shopify,
ZenCart,OpenCart.
[Link]
usinganexistingframework,softwaremodulesforvariousfunctionalitiesrequiredbyawebshop
canbeadaptedandcombined.

onlinegiftshops

Onlinegiftshopsarewebsiteswhichhavetheprimaryobjectiveofsellingproductsonlinethatwillbe
[Link].

Design
Customersareattractedtoonlineshoppingnotonlybecauseofhighlevelsofconvenience,butalso
becauseofbroaderselections,competitivepricing,andgreateraccesstoinformation.[16][17]Business
organizationsseektoofferonlineshoppingnotonlybecauseitisofmuchlowercostcomparedtobricks
andmortarstores,butalsobecauseitoffersaccesstoaworldwidemarket,increasescustomervalue,
andbuildssustainablecapabilities.[18]

Informationload

[Link]
productofthespatialandtemporalarrangementsofstimuliinthewebstore.[19]Comparedwith
conventionalretailshopping,theinformationenvironmentofvirtualshoppingisenhancedbyproviding
additionalproductinformationsuchascomparativeproductsandservices,aswellasvariousalternatives
andattributesofeachalternative,etc.[20]

Twomajordimensionsofinformationloadarecomplexityandnovelty.[21]Complexityreferstothe
numberofdifferentelementsorfeaturesofasite,oftentheresultofincreasedinformationdiversity.
Noveltyinvolvestheunexpected,suppressed,new,[Link]
dimensionmaykeepconsumersexploringashoppingsite,whereasthecomplexitydimensionmay
induceimpulsepurchases.[20]

Consumerneedsandexpectations

Asuccessfulwebstoreisnotjustagoodlookingwebsitewithdynamictechnicalfeatures,listedinmany
searchengines.[22]Inadditiontodisseminatinginformation,itisalsoaboutbuildingarelationshipwith
customersandmakingmoney.

Businessesoftenattempttoadoptonlineshoppingtechniqueswithoutunderstandingthemand/or
withoutasoundbusinessmodeloften,businessesproducewebstoresthatsupporttheorganizations'
[Link].

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Understandingthecustomer'[Link]'spromisesgives
[Link]
importantthatthewebsitecommunicateshowmuchthecompanyvaluesitscustomers.[22]

[Link],gender,experienceandculture
[Link],Japaneseculturalnormsmayleaduserstheretofeelprivacyis
especiallycriticalonshoppingsitesandemotionalinvolvementishighlyimportantonfinancialpensions
sites.[18]Userswithmoreonlineexperiencefocusmoreonthevariablesthatdirectlyinfluencethetask,
whilenoviceusersfocusonunderstandingtheinformation.[23]

Toincreaseonlinepurchases,businessesmustusesignificanttimeandmoneytodefine,design,develop,
test,implement,andmaintainthewebstore.[22]Trulysaid,itiseasiertoloseacustomerthantogainone.
Evena"toprated"websitewillnotsucceediftheorganizationfailstopracticecommonetiquettesuch
asrespondingtoemailsinatimelyfashion,notifyingcustomersofproblems,beinghonest,andbeing
goodstewardsofthecustomers'data.[22]Becauseitissoimportanttoeliminatemistakesandbemore
appealingtoonlineshoppers,manywebshopdesignersstudyresearchonconsumerexpectations.[24]

Userinterface

Themostimportantfactorsdeterminingwhethercustomersreturnto
awebsiteareeaseofuseandthepresenceofuserfriendly
features.[25]Usabilitytestingisimportantforfindingproblemsand
[Link]
includeheuristicevaluation,cognitivewalkthrough,anduser
[Link]
differentaspectsoftheuserexperience.[25]

Marketshare
EcommerceB2Cproductsalestotaled$142.5billion,[11]
representingabout8%ofretailproductsalesintheUnitedStates.[26]
The$26billionworthofclothessoldonlinerepresentedabout13%
Anautomatedonlineassistant,
ofthedomesticmarket,[27]andwith72%ofwomenlookingonline
withpotentialtoenhanceuser
forapparel,ithasbecomeoneofthemostpopularcrossshopping
interfaceonshoppingsites.
categories.[28]ForresterResearchestimatesthattheUnitedStates
onlineretailindustrywillbeworth$279billionin2015.[29]The
[Link],
thelargestretailerofelectronicsintheU.S.inAugust2014reporteditstenthconsecutivequarterlydip
insales,citinganincreasingshiftbyconsumerstoonlineshopping.[30]

Therewere242millionpeopleshoppingonlineinChinain2012.[31]

Fordevelopingcountriesandlowincomehouseholdsindevelopedcountries,adoptionofecommerce
inplaceoforinadditiontoconventionalmethodsislimitedbyalackofaffordableInternetaccess.

Advantages

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Convenience

Onlinestoresareusuallyavailable24hoursaday,andmanyconsumershaveInternetaccessbothat
[Link]
[Link],visitingaconventionalretailstorerequirestravelandmusttakeplaceduringbusiness
hours.

Intheeventofaproblemwiththeitem(e.g.,theproductwasnotwhattheconsumerordered,the
productwasnotsatisfactory),consumersareconcernedwiththeeaseofreturninganiteminexchange
[Link],visitthepost
officeandpayreturnshipping,[Link]
[Link]
example,[Link],anddoesnot
chargearestockingfee,evenforreturnswhicharenottheresultofmerchanterror.(Note:IntheUnited
Kingdom,onlineshopsareprohibitedfromchargingarestockingfeeiftheconsumercancelstheirorder
inaccordancewiththeConsumerProtection(DistanceSelling)Act2000).[32]

Informationandreviews

Onlinestoresmustdescribeproductsforsalewithtext,photos,andmultimediafiles,whereasina
physicalretailstore,theactualproductandthemanufacturer'spackagingwillbeavailablefordirect
inspection(whichmightinvolveatestdrive,fitting,orotherexperimentation).

Someonlinestoresprovideorlinktosupplementalproductinformation,suchasinstructions,safety
procedures,demonstrations,[Link],
advice,orhowtoguidesdesignedtohelpconsumersdecidewhichproducttobuy.

[Link]
[Link]
shoppingforcheaperpurchasesfromallovertheworldwithouthavingtodependonlocalretailers.

Inaconventionalretailstore,[Link]
realtimechatfeatures,butmostrelyonemailsorphonecallstohandlecustomerquestions.

Priceandselection

Oneadvantageofshoppingonlineisbeingabletoquicklyseekoutdealsforitemsorservicesprovided
bymanydifferentvendors(thoughsomelocalsearchenginesdoexisttohelpconsumerslocateproducts
forsaleinnearbystores).Searchengines,onlinepricecomparisonservicesanddiscoveryshopping
enginescanbeusedtolookupsellersofaparticularproductorservice.

Shippingcosts(ifapplicable)reducethepriceadvantageofonlinemerchandise,thoughdependingon
thejurisdiction,alackofsalestaxmaycompensateforthis.

Shippingasmallnumberofitems,especiallyfromanothercountry,ismuchmoreexpensivethan
[Link](especiallythoseselling
small,highvalueitemslikeelectronics)offerfreeshippingonsufficientlylargeorders.

Anothermajoradvantageforretailersistheabilitytorapidlyswitchsuppliersandvendorswithout
disruptingusers'shoppingexperience.

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Disadvantages
Fraudandsecurityconcerns

Giventhelackofabilitytoinspectmerchandisebeforepurchase,consumersareathigherriskoffraud
[Link]
[Link],merchantsfacelessriskfromphysicaltheftby
usingawarehouseinsteadofaretailstorefront.

SecureSocketsLayer(SSL)encryptionhasgenerallysolvedtheproblemofcreditcardnumbersbeing
[Link],onemuststilltrustthe
merchant(andemployees)nottousethecreditcardinformationsubsequentlyfortheirownpurchases,
[Link],hackersmightbreakintoamerchant'swebsiteandsteal
names,addressesandcreditcardnumbers,althoughthePaymentCardIndustryDataSecurityStandard
[Link].A
[Link]
[Link]
commerceserviceproviders,whodeploycountermeasuressuchasfirewallsandantivirussoftwareto
protecttheirnetworks.

Phishingisanotherdanger,whereconsumersarefooledintothinkingtheyaredealingwithareputable
retailer,whentheyhaveactuallybeenmanipulatedintofeedingprivateinformationtoasystemoperated
[Link],asareserverandnetwork
outages.

QualitysealscanbeplacedontheShopwebpageifithasundergoneanindependentassessmentand
[Link]
[Link],theexistenceofmanydifferentseals,orsealsunfamiliarto
consumers,[Link]
[Link]:

Stickingwithknownstores,orattemptingtofindindependentconsumerreviewsoftheir
experiencesalsoensuringthatthereiscomprehensivecontactinformationonthewebsitebefore
usingtheservice,andnotingiftheretailerhasenrolledinindustryoversightprogramssuchasa
trustmarkoratrustseal.
Beforebuyingfromanewcompany,evaluatethewebsitebyconsideringissuessuchas:the
professionalismanduserfriendlinessofthesitewhetherornotthecompanylistsatelephone
numberand/orstreetaddressalongwithecontactinformationwhetherafairandreasonable
refundandreturnpolicyisclearlystatedandwhethertherearehiddenpriceinflators,suchas
excessiveshippingandhandlingcharges.
[Link]
doesnotexplicitlystatethatitwillnotshareprivateinformationwithotherswithoutconsent.
EnsuringthatthevendoraddressisprotectedwithSSL(seeabove)whenenteringcreditcard
[Link]
"HTTPS".
Usingstrongpasswords,[Link]"passphrase,"which

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mightbesomethingalongthelines:"Ishop4goodabuy!!"Thesearedifficulttohack,and
providesavarietyofupper,lower,andspecialcharactersandcouldbesitespecificandeasyto
remember.

Althoughthebenefitsofonlineshoppingareconsiderable,whentheprocessgoespoorlyitcancreatea
[Link],faultyproducts,
[Link]
billing/shippingaddressandthewebsiteisnotsecure,customerinformationcanbeaccessibletoanyone
[Link]
[Link],criminalsareconstantlyrespondingtothesedevelopmentswithnewwaysto
[Link],
[Link]
scamsprotectconsumeridentityandfinances.

[Link]
[Link]
thedamage,butthisisuptotheirdiscretion.

Lackoffullcostdisclosure

[Link]
ofanitemonline,[Link]
[Link]
crossborderpurchases,wherethecostindicatedatthefinalcheckoutscreenmaynotincludeadditional
[Link]
basedWishabiattemptstoincludeestimatesoftheseadditionalcost,[33]butnevertheless,thelackof
generalfullcostdisclosureremainsaconcern.

Privacy

[Link]
avoidspamandtelemarketingwhichcouldresultfromsupplyingcontactinformationtoanonline
[Link],manymerchantspromisetonotuseconsumerinformationforthesepurposes,

Manywebsiteskeeptrackofconsumershoppinghabitsinordertosuggestitemsandotherwebsitesto
[Link]'saddressand
phonenumberatcheckout,[Link]
addressinformationencodedonconsumers'creditcards(oftenwithouttheirknowledge)toaddthemto
[Link]
orthroughabank(moneytransfer,inwhichcasethereisalsoproofofpayment).

Productsuitability
Manysuccessfulpurelyvirtualcompaniesdealwithdigitalproducts,(includinginformationstorage,
retrieval,andmodification),music,movies,officesupplies,education,communication,software,
photography,[Link]
marketingtechniquestofacilitatetransactionsoftangiblegoodswithoutmaintainingrealinventory.

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[Link]
oftenhaveahighvaluetoweightratio,theymayinvolveembarrassingpurchases,theymaytypicallygo
topeopleinremotelocations,[Link]
inastandardmailboxsuchasmusicCDs,DVDsandbooksareparticularlysuitableforavirtual
marketer.

Productssuchasspareparts,bothforconsumeritemslikewashingmachinesandforindustrial
equipmentlikecentrifugalpumps,[Link]
ordersparepartsspecially,sincetheytypicallydonotstockthematconsumeroutletsinsuchcases,e
commercesolutionsinsparesdonotcompetewithretailstores,onlywithotherorderingsystems.A
factorforsuccessinthisnichecanconsistofprovidingcustomerswithexact,reliableinformationabout
whichpartnumbertheirparticularversionofaproductneeds,forexamplebyprovidingpartslistskeyed
byserialnumber.

Productslesssuitableforecommerceincludeproductsthathavealowvaluetoweightratio,products
thathaveasmell,taste,ortouchcomponent,productsthatneedtrialfittingsmostnotablyclothing
[Link],somewebsiteshavehadsuccess
deliveringgroceriesandclothingsoldthroughtheinternetisbigbusinessintheU.S.

Aggregation
Highvolumewebsites,suchasYahoo!,[Link],andeBay,offerhostingservicesforonlinestores
[Link],sometimes
knownasvirtualshoppingmallsoronlinemarketplaces.

Impactofreviewsonconsumerbehaviour
Oneofthegreatbenefitsofonlineshoppingistheabilitytoreadproductreviews,writteneitherby
expertsorfellowonlineshoppers.

TheNielsenCompanyconductedasurveyinMarch2010andpolledmorethan27,000Internetusersin
55marketsfromtheAsiaPacific,Europe,MiddleEast,NorthAmerica,andSouthAmericatolookat
questionssuchas"Howdoconsumersshoponline?","Whatdotheyintendtobuy?","Howdotheyuse
variousonlineshoppingwebpages?",andtheimpactofsocialmediaandotherfactorsthatcomeinto
playwhenconsumersaretryingtodecidehowtospendtheirmoneyonwhichproductorservice.
Accordingtotheresearch,[34]reviewsonelectronics(57%)suchasDVDplayers,cellphones,or
PlayStations,andsoon,reviewsoncars(45%),andreviewsonsoftware(37%)playanimportantrolein
[Link],40%ofonlineshoppers
indicatethattheywouldnotevenbuyelectronicswithoutconsultingonlinereviewsfirst.

Inadditiontoonlinereviews,peerrecommendationsononlineshoppingpagesorsocialmediawebsites
playakeyrole[35]foronlineshopperswhentheyareresearchingfuturepurchases.[36]90%ofall
purchasesmadeareinfluencedbysocialmedia.[37]Eachday,overtwomillionbuyersareshopping
onlineforjewelry.[38]

Seealso
Bricksandclicksbusinessmodel
Darkstore
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Directimports
Digitaldistribution
Electronicbusiness
ListoffreeandopensourceeCommercesoftware
Onlineauctionbusinessmodel
Onlinestores:Webstore,Onlinemusicstore,Onlinepharmacy,Onlineshoppingmalls
Onlineshoppingrewards
Opencatalogue
Personalshopper
Retailtherapy
Typesofretailoutlets
Touristtrap

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Categories: Ecommerce Onlineretailers

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