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Question

:

What do you think of online shopping?

1.

What is the online shopping?

2.

What are the advantages of online shopping?

3.

What are the disadvantages of online shopping?

4.

Examples we usually see about online shopping.

5.

What people are worried about?

Answer:

The content of online shopping

Online shopping is the process where by consumers directly buy goods or services from a

seller in real-time, without an intermediary service, over the

Internet. It is a form of electronic

commerce. An online shop, eshop, e-store, internet shop, webshop, webstore, online store, or

virtual store evokes the physical analogy of buying

products or services at a bricks-and-mortar

retailer

or

in

a

shopping

centre.

The

process

is

called

Business-to-Consumer

(B2C)

online

shopping. When a business buys from another

business it is called Business

-to-Business (B2B)

online shopping.

In 1990 Tim Berners-Lee created the first World Wide Web server and browser. It opened

for commercial use in 1991 . In 1994 other advances took place, such as online banking and the

opening of an online pizza shop by Pizza Hut. During that same year, Netscape introduced SSL

encryption of data transferred

online, which has become essential for secure online shopping.

Also

in

1994

the

German

company

Intershop

introduced

its

first

online

shopping

system.

In

1995 Amazon launched its online shopping site, and in 1996 eBay appeared.

In recent years, online shopping has become popular; however, it still caters to the middle

and upper class. In order to shop online, one must be able to have access to a computer, a bank

account

and

a

debit

card.

Shopping

has

evolved

with

the

growth

of

technology.

According

to

research

found

in

the

Journal

of

Electronic

Commerce,

if

one

focuses

on

the

demographic

characteristics

of

the in-home

shopper,

in

general,

the

higher

the

level

of education,

income,

and occupation of the head of the household, the more favourable the perception of non-store

shopping., Enrique.(2005) The Impact of Internet User Shopping Patterns and Demographics on

Consumer

Mobile

Buying

Behaviour.

Journal

of

Electronic

Commerce

Research,

An

influential

factor in consumer attitude towards non-store shopping is exposure to technology, since it has

been

demonstrated

that

increased

exposure

to

technology

increases

the

probability

of

developing favourable attitudes towards new shopping channels.

Online shopping widened the target audience to

men and

women

of the middle class. At

first,

the

main

users

of

online

shopping

were

young

men

with

a

high

level

of

income

and

a

university education. This profile is changing. For example, in USA in the early years of Internet

there were very few women users, but by 2001 women were 52.8% of the online population.

The main idea of online shopping is not just in having a good looking website that could be

listed

in

a

lot

of

search

engines

or

the

art

behind

the

site.

It

also

is

not

only

just

about

1

disseminating

information,

because

it

is also

about

building

relationships

and

making

money.

Mostly, organizations try to adopt techniques of online shopping without understanding these

techniques and/or without a sound business model. Rather than supporting the organization's

culture

and

brand

name,

the

website

should

satisfy

consumer's

expectations.

A

majority

of

consumers choose online shopping for a faster and more efficient shopping experience.

Many

researchers notify that the uniqueness of the

web has dissolved and the

need for the design,

which will be user centered, is very important. Companies should always remember that there

are certain things, such as understanding the customer's wants and needs, living up to promises,

never

go

out

of

style,

because

they

give

reason

to

come

back.

And

the

reason

will

stay

if

consumers always get what they expect. McDonaldization theory can be used in terms of online

shopping,

because

online

shopping

is

becoming

more

and

more

popular

and

a

website

that

wants

to

gain

more

shoppers

will

use

four

major

principles

of

McDonaldization:

efficiency,

calculability, predictability and control.

Organizations,

which

want

people

to

shop

more

online

with

them,

should

consume

extensive

amounts

of

time

and

money

to

define,

design,

develop,

test,

implement,

and

maintain

the

website.

Also

if

a

company

wants

their

website

to

be

popular

among

online

shoppers

it

should

leave

the

user

with

a

positive

impression

about

the

organization,

so

consumers

can get an

impression

that

the

company

cares

about

them.

The

organization

that

wants to be accepted in online shopping needs to remember, that it is easier to lose a customer

then to gain one. Lots of researchers state that even when a site was

nowhere if the organization failed to live up to 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. Organizations that want to keep their customers or gain new ones

should

try to get rid of all mistakes and be more appealing to be more desirable for online shoppers.

And this is why many designers of webshops consider research outcomes concerning consumer

expectations.

Research

conducted

by

Elliot

and

Fowell

(2000)

revealed

satisfactory

and

unsatisfactory customer experiences.

Advantages of online shopping

1.

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 access as well. A visit to a conventional retail store requires travel and must take place

during business hours.

In the event of a problem with the item

–

it is not what the consumer ordered, or it is not

what they expected

–

consumers are concerned with the ease with which they can return an

item for the correct one or for 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

2

physical stores. For example, the online shoe retailer 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.

2.

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 s

pecifications. 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.

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-mail

or

phone

calls

to

handle

customer questions.

3.

Price and selection

One

advantage

of

shopping

online

is

being

able

to

quickly

seek

out

deals

for

items

or

services

with

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 of online shopping

1.

Fraud and security concerns

Given the lack of ability to inspect merchandise before purchase, consumers are at higher

risk of fraud on the part of the merchant than in a physical store. Merchants also risk fraudulent

3