Online Shopping - Wikipedia
Online Shopping - Wikipedia
Online Shopping - Wikipedia
Terminology
Alternative names for the activity are "e-
tailing", a shortened form of "electronic
retail" or "e-shopping", a shortened form of
"electronic shopping". An online store may
also be called an e-web-store, e-shop, e-
store, Internet shop, web-shop, web-store,
online store, online storefront and virtual
store. Mobile commerce (or m-commerce)
describes purchasing from an online
retailer's mobile device-optimized website
or software application ("app"). These
websites or apps are designed to enable
customers to browse through a
companies' products and services on
tablet computers and smartphones.
History
History of online shopping
International statistics
Statistics show that in 2012, Asia-Pacific
increased their international sales over
30% giving them over $433 billion in
revenue. That is a $69 billion difference
between the U.S. revenue of $364.66
billion. It is estimated that Asia-Pacific will
increase by another 30% in the year 2013
putting them ahead by more than one-third
of all global ecommerce sales. The largest
online shopping day in the world is Singles
Day, with sales just in Alibaba's sites at
US$9.3 billion in 2014.[16][17]
Canada 2.8%[19]
Australia 7%
Customers
Online customers must have access to the
Internet and a valid method of payment in
order to complete a transaction. Generally,
higher levels of education and personal
income correspond to more favorable
perceptions of shopping online. Increased
exposure to technology also increases the
probability of developing favorable
attitudes towards new shopping
channels.[21]
Product selection
Consumers find a product of interest by
visiting the website of the retailer directly
or by searching among alternative vendors
using a shopping search engine. Once a
particular product has been found on the
website of the seller, most online retailers
use shopping cart software to allow the
consumer to accumulate multiple items
and to adjust quantities, like filling a
physical shopping cart or basket in a
conventional store. A "checkout" process
follows (continuing the physical-store
analogy) in which payment and delivery
information is collected, if necessary.
Some stores allow consumers to sign up
for a permanent online account so that
some or all of this information only needs
to be entered once. The consumer often
receives an e-mail confirmation once the
transaction is complete. Less
sophisticated stores may rely on
consumers to phone or e-mail their orders
(although full credit card numbers, expiry
date, and Card Security Code,[25] or bank
account and routing number should not be
accepted by e-mail, for reasons of
security).
Payment
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:
Product delivery
Once a payment has been accepted, the
goods or services can be delivered in the
following ways. For physical items:
Shipping: The product is shipped to a
customer-designated address. Retail
package delivery is typically done by the
public postal system or a retail courier
such as FedEx, UPS, DHL, or TNT.
Drop shipping: The order is passed to
the manufacturer or third-party
distributor, who then ships the item
directly to the consumer, bypassing the
retailer's physical location to save time,
money, and space.
In-store pick-up: The customer selects a
local store using a locator software and
picks up the delivered product at the
selected location. This is the method
often used in the bricks and clicks
business model.
Design
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.[30][31]
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.[32]
Information load
Designers of online shops are concerned
with the effects of information load.
Information load is a product of the spatial
and temporal arrangements of stimuli in
the web store.[33] Compared with
conventional retail shopping, the
information environment of virtual
shopping is enhanced by providing
additional product information such as
comparative products and services, as
well as various alternatives and attributes
of each alternative, etc.[34] Two major
dimensions of information load are
complexity and novelty.[35] Complexity
refers to the number of different elements
or features of a site, often the result of
increased information diversity. Novelty
involves the unexpected, suppressed, new,
or unfamiliar aspects of the site. The
novelty dimension may keep consumers
exploring a shopping site, whereas the
complexity dimension may induce impulse
purchases.[34]
User interface
Market share
The popularity of online shopping
continues to erode sales of conventional
retailers. For example, Best Buy, the
largest retailer of electronics in the U.S. in
August 2014 reported its tenth
consecutive quarterly dip in sales, citing
an increasing shift by consumers to online
shopping.[40] Amazon.com has the largest
market share in the United States. As of
May 2018, a survey found two-thirds of
Americans had bought something from
Amazon (92% of those who had bought
anything online), with 40% of online
shoppers buying something from Amazon
at least once a month. The survey found
shopping began at amazon.com 44% of
the time, compared to a general search
engine at 33%. It estimated 75 million
Americans subscribe to Amazon Prime
and 35 million more use someone else's
account.[41]
Advantages
Convenience
Online stores are usually available 24
hours a day, and many consumers in
Western countries have Internet access
both at work and at home. Other
establishments such as Internet cafes,
community centers and schools provide
internet access as well. In contrast,
visiting a conventional retail store requires
travel or commuting and costs such as
gas, parking, or bus tickets, and must
typically take place during business hours.
Delivery was always a problem which
affected the convenience of online
shopping. However to overcome this many
retailers including online retailers in
Taiwan brought in a store pick up service.
This now meant that customers could
purchase goods online and pick them up
at a nearby convenience store, making
online shopping more advantageous to
customers.[43] In the event of a problem
with the item (e.g., the product was not
what the consumer ordered or the product
was not satisfactory), consumers are
concerned with the ease of returning an
item in exchange for the correct product or
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 physical stores. For example,
the online shoe retailer Zappos.com
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).[44] A 2018 survey in the United
States found 26% of online shoppers said
they never return items, and another 65%
said they rarely do so.[45]
Information and reviews
Disadvantages
Fraud and security concerns
Privacy
Product suitability
This section needs additional citations for
verification.
Aggregation
High-volume websites, such as Yahoo!,
Amazon.com, and eBay, offer hosting
services for online stores to all size
retailers. These stores are presented
within an integrated navigation framework,
sometimes known as virtual shopping
malls or online marketplaces.
Impact of reviews on
consumer behavior
One of the great benefits of online
shopping is the ability to read product
reviews, written either by experts or fellow
online shoppers. The Nielsen Company
conducted a survey in March 2010 and
polled more than 27,000 Internet users in
55 markets from the Asia-Pacific, Europe,
Middle East, North America, and South
America to look at questions such as
"How do consumers shop online?", "What
do they intend to buy?", "How do they use
various online shopping web pages?", and
the impact of social media and other
factors that come into play when
consumers are trying to decide how to
spend their money on which product or
service. According to the research,[47]
reviews on electronics (57%) such as DVD
players, cellphones, or PlayStations, and
so on, reviews on cars (45%), and reviews
on software (37%) play an important role
in influencing consumers who tend to
make purchases online. Furthermore, 40%
of online shoppers indicate that they
would not even buy electronics without
consulting online reviews first.
See also
Bricks and clicks business model
Comparison of free software e-
commerce web application frameworks
Dark store
Direct imports
Digital distribution
Electronic business
Online auction business model
Online music store
Online pharmacy
Online shopping malls
Online shopping rewards
Open catalogue
Personal shopper
Retail therapy
Types of retail outlets
Self-publishing
Tourist trap
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