Ecommerce: Dangers of Online Shopping

Princess Neharah M. Nuska

I. Introduction

With the rise of technologies and increasing of online users and consumers, it is

becoming essential to find and know the dangers in online shopping.

The aim and purpose of this research paper is to overview at the dangers of online

shopping and some other related topics in relation to it. Using the resources in the library

research section, In relation, I will take up Four things in this paper. Firstly, I will trace

the History of computer applications in internet connection with the World Wide Web

transaction regarding online shopping and a brief discussion about its discovery.

Secondly, this will define what online shopping is and its structure. Thirdly, I will

describe the current use of online shopping. And fourthly, I will focus on the dangers in

Online Shopping, structures of its effects towards consumers.

Online Shopping is a growing area of Technology. Establishing a store on the

internet, allows for retailers to expand their market and reach out to consumers who may

not otherwise visit the physical store. The convenience of online shopping is the main

attraction for the consumers. Unique online payment systems offer easy and safe

purchasing from other. Electronic consumers’ exhibit different buying behaviors such as;

cart abandonment. The benefits of shopping online also come with potential risks and

dangers that consumers must be aware of. I believe that this paper will provide

knowledge about dangers in online shopping.

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II. A. Historical Background

Online shopping was invented, implemented and successful very quickly – less

than a week between idea and rough experimental model, less than 6 months to

productions hardware and software and less than 12 months from product release to the

first operational system, the world’s first direct Business to Business (B2B) online

shopping system in 1981[Thomson Holidays]. In online shopping the buyer is connected

interactively with the seller’s computer system. No third parties are involved. When a

third party is involved that is usually called e-commerce. The Reinfusion computer

system used for online shopping was open, using standard communications hardware and

a standard human interface. Any terminal could talk to any suitably equipped computer.

Any number of applications could be available. The systems were very simple and easy-

to-use. .

B2B was commercially viable from the beginning. Business to Consumer (B2C) online

shopping did not become commercially viable until the 1990s. The first B2Cs in the

1980s were basically proof of concept pilots paid for largely by social security funding

and used to investigate the potential for IT to reduce social disadvantage by offering in-

the- home services to vulnerable and physically challenged citizens.

Valuable lessons for the retail industry were also learned from these pilots not

least that order processing, order fulfillment {by manual item selection} and delivery

should be based at the local store not at some automated warehouse.

Aldrich realized from the beginning of his work on online shopping that the traditional

TV as a computer interface device had real limitations. He also saw the need for high

capacity telecommunications links to the home. This is what we call broadband today

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He then went on to invent and pioneer new solutions to these problems and he then

campaigned to change the law to permit his new broadband systems. For more details

please see the ‘Teleputers and Cable Systems’ section of the Archive.

In 1990 Tim Berners-lee created the first World Wide Web servers and browser.

It opened for commercial use in 1991. In the 1994 other advances took place, such as

online banking and the opening of an online pizza shop by Pizza Hut. And it was in the

year 1991 when the NSF (National Science Foundation) cleared the way of the

commercial use of NET. This was considered to be major boost for the commerce

industry and its future growth. Statistics state that the traffic on the backbone network of

NSF jumped over 1 trillion bytes per month in the year 1991 itself after it was opened

commercial use. Online shopping over 1992, a book called “Future shop: How New

Technologies will change the way we shop and what we buy” was published in the year

1992. The book was considered revolutionary considering the fact that it talked about

what will happen in the future of ecommerce and how the Internet will take shape. Over

1994 “Mother of All Years” for ecommerce ass Netscape launched encryption certificate

which became the trustworthy means of transmitting data over the Internet and the year

1994 also marked the launch of Yahoo, though the domain was registered later in the

1995. This truly gave the internet and ecommerce a completely new direction. In year

1995 also. It was the year when NSF started charging a fee for registration domain

names, at that time the Internet had 12,000 domain names registered and the number

jumped to over 2 Million in the next 3 years - $100 for 2 years was the price for a domain

in the year 1995. It is when PayPal came existence in the year 1998. The current PayPal

system that we see is actually the merger of X.COM, a financial service company of the

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late 2000s, and cofinity which happened to be a payment and cartographic company. It

was the year 1998 only when Google entered the World Ecommerce and Yahoo launched

Stores Online. After 2000, As they say, what followed after Google is history. Be it the

dot com bubble or the web 2.0, the internet has experienced exponential growth (with its

own pitfalls) that has shaped the lives of many. As we know it, the internet continues to

grow with major and minor ecommerce companies launching their own set of stores.

Today, we can literally buy anything via internet such fan pages, websites ant etc.. That is

the wonderland of ecommerce.

B. Definition of Online Shopping

Online shopping is the process of buying goods and services from merchants over

the Internet. Since the emergence of the World Wide Web, merchants have sought to sell

their products to people who spend time online. Shoppers can visit web stores from the

comfort of their homes and shop as they sit in front of the computer.

Consumers can buy a huge variety of items from online stores, and just about anything

can be purchased from companies that provide their products online. Books, clothing,

household appliances, toys, hardware, software, and health insurance are just some of the

hundreds of products consumers can buy from an online store.

Many people choose to shop online because of the convenience. For example, when a

person shops at a brick-and-mortar store, she has to drive to the store, find a parking

place, and walk throughout the store until she locates the products she needs. After

finding the items she wants to purchase, she may often need to stand in long lines at the

cash register.

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In contrast, online shopping helps consumers avoid these disadvantages. A person only

has to log onto the Internet, visit the store's website, and choose the items she desires.

The items are held in a virtual shopping cart until she is ready to make her purchase. The

shopper can remain in her pajamas as she does her shopping, and the process can be

conducted in the wee hours of the morning or late into the night. Online stores almost

never close.

Despite the convenience, not everyone chooses to purchase items and services online.

Some people like the idea of physically going to a store and experiencing the shopping

process. They like to touch the merchandise, try on clothing, and be around other people.

Online shopping doesn't permit shoppers to touch products or have any social interaction,

and it also doesn't allow them to take the merchandise home the same day they buy it.

Other people may worry about shopping online because they fear their credit

card information will be compromised. Since it's necessary to provide credit card

information when purchasing products online, it is possible for individuals to become

victims of identity theft. Using secure servers can help, but it's no guarantee that credit

information will remain private.

Another reason some consumers avoid shopping online is the fact that they worry that the

products they purchase are not accurately portrayed in the website's picture or that they

will be of lesser quality. It's also impossible to try on apparel bought over the Internet, so

a consumer has to rely on body measurements in order to make sure the clothing will fit

properly. If the clothing arrives in the mail and it's too small, it must be mailed back,

which is a potential inconvenience that some shoppers may not wish to face.

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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

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:

 Billing to mobile phones and landlines[13][14]

 Cash on delivery (C.O.D.)

 Cheque / Check

 Debit card

 Direct debit in some countries

 Electronic money of various types

 Gift cards

 Postal money order

 Wire transfer/delivery on payment

 Invoice, especially popular in some markets/countries, such as Switzerland

 Bitcoin or other cryptocurrencies

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

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base of operation. Other online shops allow customers from any country to send gifts

anywhere.

C. Current Use

A company that wants to market their items online can establish an online store

by developing a website. These stores usually consist of several department areas with

the merchandize organized accordingly. The consumer may view the products’ picture,

item details, materials, sizing, etc. If the consumer chooses to add the item to his or her

virtual shopping cart, they are usually given the option to continue shopping or proceed

to checkout. Once the consumer proceeds to checkout, the credit card transaction is

completed and the item is prepared and shipped from the retailer to the consumer.

Many physical retail stores have expanded their market by using the Internet. By

having both a virtual store and a physical store, companies get the best of both worlds.

Stores that are marketing their products in both areas can take advantage of the high

demand for online shopping availability. The ability to shop for products online gives

consumers the option to purchase goods off of the Internet with the convenience of not

even leaving his or her home. Others; however, still enjoy and prefer to go into a physical

store to make purchases. For some consumers their method of purchase is not because of

a preference but because of generation gap.

In order to shop online, the consumer must be relatively familiar with computers

and how to navigate the Internet. Internet retail stores target a specific age group. “The

Net-generation is made up of individuals born between 1977 and 1997” (Kim &

Ammeter, 2008). This “is the first generation to grow up surrounded by digital media and

the Internet” (Kim & Ammeter, 2008). For those born before the 1970s, “The online

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market [is] a new innovation for them so they [are] less familiar with online shopping”.

“Pre Net-geners have a relatively lower capability to utilize the excess of information

available on the Internet” (Kim & Ammeter, 2008). Because of this, online retailers

market to the Net-generation in order to be successful and profitable.

Also rising in popularity, are online websites, which allow consumers to sell and

purchase to each other. Payment Systems such as PayPal have made shopping online

much easier. and more consumers are gaining access to the PayPal system. “Customers

with a virtual wallet for online global shopping, empowering a new segment of

consumers to buy products and services on the web ' without the use of a credit card”

(DBS and PayPal, 2010). This payment option allows for safe transactions between two

private parties

D. Dangers in Online Shopping

Risks:

Buying counterfeit, damaged or stolen goods

Whether intentionally or not, the risk of receiving counterfeit, damaged or stolen

goods exists when shopping on the Internet. This is detrimental to the consumer in many

ways, the most obvious of which is being landed with a substandard product. However, it

is also possible for the customer to put their own health at risk by purchasing an item

which is simply dangerous eg. containing faulty electrical components, ingredients that

are not safe for human consumption, toxic additives in paints and inks, etc.

The dangers of purchasing pharmaceuticals online cannot be understated. There has been

a growing trend in recent years of counterfeiting drugs and health products to capitalize

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on the growth of online pharmacies. Counterfeit drugs can cause damage either by

containing harmful ingredients or by simply not containing any active ingredients at all,

leading individuals to believe they are being treated when they aren’t.

Delay and hassle with online purchases

Sometimes a company can take a long time to respond to an order placed online

and to deliver what has been ordered.

To avoid the stress of delays or hassles with a vendor, we would recommend that you use

a search engine such as Google to see if anyone else has had problems with the vendor

before you go ahead and make a purchase.

Unfortunately sometimes mistakes are made, stock is not available, numbers of orders is

underestimated, etc. so you should not immediately disregard an online store due to

delivery or delays in other customer’s purchase. Dell, for instance, have had several

issues with delayed deliveries yet is still a reputable and trustworthy company.

Paying for goods that never arrive

This can happen quite frequently, but fortunately as consumers we have

considerable protection from this when using reputable vendors. Sites such as Amazon or

eBay offer ways to compensate consumers who could be ripped off by fraudulent third

party sellers. Again we recommend you carefully check customer reviews and rating

before making your purchase.

Many online retailers do not offer any protection against missing or undelivered goods,

however, depending upon where you live there should be a trading standards organization

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that can help. For example, in the UK there is the Trading Standards Institute

(http://www.tradingstandards.gov.uk/) that provides advice on what steps you can take.

Misuse or theft of credit card or banking details

There are a few ways in which criminals try to obtain your credit card or banking details:

Phishing

This is popular because it is incredibly easy to do. An e-mail is written that pretends to

be from a bank or other financial organisation, claiming that you need to log in to their

website to confirm or correct your personal details. The links on the e-mail will be faked

to direct you to a website that looks very much like the real one. These e-mails get sent

to millions of people, so only a very small number of responses will make it worth while

for the criminals to continue. They cast their net wide in the hopes of catching a few

victims, hence “phishing”. The change of the “f” to “ph” in the word is simply a thing

that hackers have done for years.

Clues to watch for:

● is the spelling and grammar correct throughout the e-mail?

● Are you addressed by your full name or does it say “Dear customer”? Another

Ploy used here is to take the start of your e-mail address to try to fake a greeting,

E.g. If your e-mail address is simon@somewhere.com, you may get “Dear

Simon”.

● Does the e-mail contain all the correct graphics for the company?

● Hover your cursor over the links and check the status bar at the bottom of the

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Screen to see where the link is going to take you. The text that is displayed is

not necessarily the same as the actual link!

● is the e-mail suggesting that you are required to provide some personal/financial

information? Reputable companies, especially financial organizations, will never

Ask you for this by e-mail.

If all of the above are answered to your satisfaction, then perhaps the e-mail is

authentic and the company really does want you to visit their website. If so, you can go

to their site by typing in the address or by searching for them on Google, thus avoiding

the link in the e-mail.

This link will take you to the fantastic Anti-Phishing Work Group (http://www.anti-

phishing.com) who offer advice on how to check the site you are visiting is legitimate.

Hacked email accounts are frequently being used to send spam containing details of

discount electrical, pharmaceutical, watches and designer clothing stores or pretending to

be a friend recommending items like this. This may at first appear to be an e-mail from

someone that you know, but the way the e-mail is written will usually give the game

away. These vendors are to be avoided at all costs! You would almost certainly be ripped

off paying for goods that never arrive, receive stolen or counterfeit products, or have your

credit card details stolen and passed into the hands of criminals.

Trojans

Like the Greeks hidden in the famous wooden horse, e-mail attachments can

contain programs that can run on your computer. These are harmless unless you open

them. There are a few ways in which the criminals will encourage you to open them.
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One of the most common ways being faking the name of the attachment so that it looks

like an innocent file, e.g. a graphical image or a document. Many of these e-mails also

contain texts that urge you to open the attachment by promising a variety of potential

benefits.

To avoid problems with Trojans (and a few other types of virus), never open attachments

on an e-mail unless you know what it is and why it was sent.

Man-in-the-middle

This involves intercepting your communications, very similar to the concept of “tapping”

a telephone. As your data flows between your computer and the website you are

viewing, a third-party can get to see what is being transferred. In order to do this, the

criminal needs to find a point in the communication link at which they can listen in.

In this case, the percent intercepting the information may or may not change the

information being passed to and fro.

This is much more technically sophisticated than phishing, but website owners can avoid

it very easily by simply adding encryption to their site. The encryption process (normally

using the “https” protocol for websites) adds checking to make sure that only the

computers at the ends of the link can see what is going on.

Emotional distress linked to the above

Unfortunately there is no easy way to cope with the stress of knowing you have been

ripped off. It happens to a great number of people every day and it is a sad fact that

fraudsters are using every more sophisticated techniques to get to our cash. But by

remaining vigilant and doing a reasonable amount of research before you buy and

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following the above advice you can put your mind at rest that you are remaining as safe

as possible.

Potential Problems: Online Stores

A scammer can easily set up a website that appears to be a legitimate store by

simply copying the look of other, well-known stores. Once these fake websites are

online, scammers prey on people who are looking for the lowest price possible. Shoppers

often start by searching on Google or Bing for products they’d like to buy, and then add

words such as “cheapest” or “lowest price.” In return, the search engine will present

many, even hundreds of websites selling the item. Some of these websites may be fake.

When selecting a website to purchase your desired item, be wary of online stores offering

a price that is dramatically cheaper than anyone else. The reason they may be so cheap is

because after you purchase your item, what you receive in the mail is a counterfeit or

stolen item, or in some cases is simply never even shipped. Indicators of fraudulent

websites include:

• There is no phone number to call for sales or support-related questions.

• The website domain name is different than the domain name it uses for email addresses

or other contact information.

• The website uses poor grammar or spelling.

 The website is an exact replica of a well known website you have used in the past, but

the website domain name or the name of the store is slightly different.

Remember, just because the site looks professional does not mean that it is legitimate.

If some aspect of the site strikes you as odd, take the time to take a closer look at it. For

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instance, call the phone number listed in the “contact” section of the website to confirm

that the number is valid. Also, type the store’s name or URL into a search engine and see

what other people have said about the website in the past. If you are still not sure if the

website is legitimate, do not use it. Instead, use a well-known website that you can trust,

preferably one you, your friends or family members have used in the past. The prices

may not be quite as good, but you will receive a more reliable product and be less likely

to get ripped off.

III. Conclusion / Findings

In this paper, I have sketched the historical context and most importantly the

Dangers in Online Shopping. I have shown the different possible problems that may

overcome during buying and selling online shopping. I am able to cover the structures of

Online Shopping. Thus, several other studies may be done. Research can be conducted to

determine the structures and possible recommendations for the safety in online.

Furthermore, it is also essential to overview more about Ecommerce.

Online shopping has become extremely popular over the last decade. Utilized

mostly by the “Net- Generation”, this service is extremely convenient. Although online

shopping can be very convenient and beneficial there are also some potential problems

that can arise. Consumers have been seen to exhibit different buying behaviors when

shopping online than when they are shopping in a physical store. This makes it

imperative that retailers study the behaviors of consumers and make changes in order to

remain profitable and successful. Another potential problem that can arise from online

shopping is addiction. The convenience of online shopping that can be seen as very

beneficial, can also lead to an unhealthy addictive pattern of behavior. If the person does

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not seek help, this unhealthy pattern, can result in an online shopping addiction, causing

more than financial damage. In the future, we can expect online stores to improve their

technology tremendously, allowing for an easier and a more realistic shopping experience

online. The technology of online shopping websites will continue to grow and, as a result,

will expand the online shopping market and benefiting thousands of consumers over the

world.

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 References

Books:

Crowe, E. P. (2011). Genealogy 5th Edition: ONLINE. University of California,

Berkeley.

Darnay, A. J. and Magee, M. D. (2007). Encyclopedia of Small Business 3rd Edition, J-Z

volume 2: Online Auctions. Farmington Hills

Reynolds, C. R. and Jansen, E. F. (2012). Encyclopedia of Special Educations 3rd

Editions voulume 2 E-O: Online. Canada

Journal:

The Wall Street Journal, “ Online Shopping Gendr gap”Chicago Tribune. (March 15,

2010): pp.3-4

Internet:

http://www.wisegeek.org/what-is-online-shopping.htm

http://visual.ly/e-commerce-sales-history-online-shopping

https://www.discovery.co.za/portal/individual/credit-card-news-feb14-online-

shopping/?utm_source=CardNewsletterFeb14

http://www.aldricharchive.com/shopping_history.html

http://www.forbes.com/sites/abegarver/2012/09/11/The-top-five-dangers-of-online-

shopping-precautions-to-take/.

http://findlaw.com.uk/law/consumer/salesofgoods/before-you-buy/500095.html

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 Curriculum Vitae

PRINCESS NEHARAH MAGAYOONG NUSKA

09361622043
Pnmagayoongnuska17@gmail.com
084 Panggao Saduc, Marawi City

Objective:

To attach to my Research paper and for academic purposes

Personal Data:

Place of Birth: Iligan Medical Hospital, Iligan City

Date of Birth: June 17, 1996
Age: 18 years old
Weight: 105 lbs
Height: 5’4’’
Blood type: “O”
Mother’s name: Cairon Magayoong Nuska
Occupation: Housewife
Father’s Name: Carnain Dayamala Nuska
Occupation: Accountant

Educational Background:

College: Currently, First Year

BS- Accounting Technology
St. Michael’s College
Quezon Ave., Iligan City

Elementary and High School: - Jamiatul Philippine Al-Islamia

Marawi City, Lanao del Sur (2002-2013)
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