Online shopping

In 2018, 9.8% of all retail sales in the United States were made online.[18] In 2019, that figure was 2.8% in Canada.^[19] In the United Kingdom, online sales peaked at 37.8% of all retail sales in January 2021, and were at 26.3% in January 2024.^[20]

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]

In addition, age is also a significant factor that affects online shopping. People feel that privacy and security factors have an even more significant impact on attitudes toward online shopping than product factors. Shoppers of different age groups have different perceptions of the risk factors of online shopping.^[22]

Customer buying behaviour in digital environment

The marketing around the digital environment, customer's buying behaviour may not be influenced and controlled by the brand and firm, when they make a buying decision that might concern the interactions with search engine, recommendations, online reviews and other information. In modern shopping environments, people are more likely to use their mobile phones, computers, tablets and other digital devices to gather information. In an online shopping environment, interactive decision may have an influence on aid customer decision making, through online product reviews and user-generated content, typically provided through software from companies like Bazaarvoice and Trustpilot, or via social media.^[23][24] This content, which can include text or video-based reviews, customer photos, and feedback, is often displayed alongside products being sold on websites like Amazon, Target, and most other digital storefronts.

Subsequently, risk and trust would also are two important factors affecting people's' behavior in digital environments. Customers consider to switch between e-channels, because they are mainly influence by the comparison with offline shopping, involving growth of security, financial and performance-risks In other words, a customer shopping online that they may receive more risk than people shopping in stores. There are three factors may influence people to do the buying decision, firstly, people cannot examine whether the product satisfy their needs and wants before they receive it. Secondly, customer may concern at after-sale services. Finally, customer may afraid that they cannot fully understand the language used in e-sales. Based on those factors customer perceive risk may as a significantly reason influence the online purchasing behaviour.^[25]

Online retailers has place much emphasis on customer trust aspect, trust is another way driving customer's behaviour in digital environment, which can depend on customer's attitude and expectation. Indeed, the company's products design or ideas can not met customer's expectations. Customer's purchase intention based on rational expectations, and additionally impacts on emotional trust. Moreover, those expectations can be also establish on the product information and revision from others.^[26]

In several studies, perceived value, shopping style, and brand trust are the main factors that affect online consumers' decisions.^[27]  The perceived value means that people can compare the products and prices online, bringing them the perceived value of getting more benefits online than in an offline store.^[28] The comfortable environment that online shopping brings to customers can make consumers get more perceived value. In the end, E-commerce behavior is still mostly influenced by families that are receptive to new technologies, and to a lesser extent by efficiency concerns. [1]

Product selection

Once a particular product has been found and selected 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,^[29] or bank account and routing number should not be accepted by e-mail, for reasons of security).

Impact of reviews on consumer behavior

One of the great benefits of online shopping is the ability to read

In addition to online reviews, peer recommendations on online shopping pages or social media websites play a key role[31] for online shoppers when they are researching future purchases.^[32] 90% of all purchases made are influenced by social media.^[33]

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:

• Billing to
  mobile phones and landlines^[34][35]
• cryptocurrencies
• Cash on delivery (C.O.D.)
• Cheque/ Check
• Debit card
• Direct debit in some countries
• Electronic money
  of various types
• Gift cards
• Invoice, especially popular in some markets/countries, such as Switzerland
• Postal money order
• Wire transfer/delivery on payment

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 base of operation. Other online shops allow customers from any country to send gifts anywhere. The financial part of a transaction may be processed in real time (e.g. letting the consumer know their credit card was declined before they log off), or may be done later as part of the fulfillment process.

Product delivery

Once a payment has been accepted, the goods or services can be delivered in the following ways. For physical items:

• 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
  bricks and clicks
  business model.

For digital items or tickets:

• Downloading/Digital distribution:^[36] The method often used for digital media products such as software, music, movies, or images.
• e-mailing of such items as admission tickets and scrip
  (e.g., gift certificates and coupons). The tickets, codes, or coupons may be redeemed at the appropriate physical or online premises and their content reviewed to verify their eligibility (e.g., assurances that the right of admission or use is redeemed at the correct time and place, for the correct dollar amount, and for the correct number of uses).
• Will call, COBO (in Care Of Box Office), or "at the door" pickup: The patron picks up pre-purchased tickets for an event, such as a play, sporting event, or concert, either just before the event or in advance. With the onset of the Internet and e-commerce sites, which allow customers to buy tickets online, the popularity of this service has increased.

Shopping cart systems

Simple shopping cart systems allow the off-line administration of products and categories. The shop is then generated as HTML files and graphics that can be uploaded to a webspace. The systems do not use an online database.

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.[39]^[40] 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.^[41][42]

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.^[43] 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.^[44] Two major dimensions of information load are complexity and novelty.^[45] 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.^[44]

Consumer needs and expectations

Internet consumers are self-conscious and emphasize personalized consumption, which makes the demand for online consumption different. Online consumers have different needs depending on their time and environment. Even different online consumers have different needs at the same level of demand due to the difference in income level and other factors. Compared with the centralized nature of traditional markets, online consumption is more decentralized. In the online consumer market, consumers have a short decision time, a large variability of consumer demand, a large number of purchases, but a relatively small amount of each purchase, a considerable mobility of purchases, a strong substitutability of goods, and a large elasticity of demand.^[46] According to the output of a research report by Western Michigan University published in 2005, an e-commerce website does not have to be good looking with listing on a lot of search engines. It must build relationships with customers to make money. The report also suggests that a website must leave a positive impression on the customers, giving them a reason to come back.^[47] However, resent research^[48] has proven that sites with higher focus on efficiency, convenience, and personalised services increased the customers motivation to make purchases.

These concerns majorly affect the decisions of almost two thirds of the consumers.[49]

User interface

The most important factors determining whether customers return to a website are ease of use and the presence of user-friendly features.

There were 242 million people shopping online in China in 2012.[53] For developing countries and low-income households in developed countries, adoption of e-commerce in place of or in addition to conventional methods is limited by a lack of affordable Internet access.

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 usually take place during business hours. Delivery was always a problem which affected the convenience of online shopping. Additionally, the online shopping industry has not only involved the concept of providing convenience for customers but also improved perceptions of social inclusion.

Online shopping is usually more informationally rich than shopping at physical stores traveled to and usually has higher comparability and customizability.[59]

Online stores must describe products for sale with text, photos, and multimedia files, and sometimes have features such as question and answers or filters, 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 specifications. 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. Reviews and even some blogs give customers the option of shopping for cheaper purchases from all over the world without having to depend on local retailers. 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-mails or phone calls to handle customer questions. Even if an online store is open 24 hours a day, seven days a week, the customer service team may only be available during regular business hours. It also implies that geographical factors, rather than socioeconomic issues, must be addressed in order to improve online shopping acceptance.[2]

Price and selection

One advantage of shopping online is being able to quickly seek out deals for items or services provided by many different vendors (though some

• Sticking with well-known stores, or attempting to find independent consumer reviews of their experiences; also ensuring that there is comprehensive contact information on the website before using the service, and noting if the retailer has enrolled in industry oversight programs such as a trust mark or a trust seal.
• Before buying from a new company, evaluating the website by considering issues such as: the professionalism and user-friendliness of the site; whether or not the company lists a telephone number and/or street address along with e-contact information; whether a fair and reasonable refund and return policy is clearly stated; and whether there are hidden price inflators, such as excessive shipping and handling charges.
• Ensuring that the retailer has an acceptable privacy policy posted. For example, note if the retailer does not explicitly state that it will not share private information with others without consent.
• Ensuring that the vendor address is protected with SSL (see above) when entering credit card information. If it does the address on the credit card information entry screen will start with "HTTPS".
• Using
  strong passwords
  which do not contain personal information such as the user's name or birthdate. Another option is a "pass phrase," which might be something along the lines: "I shop 4 good a buy!!" These are difficult to hack, since they do not consist of words found in a dictionary, and provides a variety of upper, lower, and special characters. These passwords can be site specific and may be easy to remember.

Although the benefits of online shopping are considerable, when the process goes poorly it can create a thorny situation. A few problems that shoppers potentially face include identity theft, faulty products, and the accumulation of spyware. If users are required to put in their credit card information and billing/shipping address and the website is not secure, customer information can be accessible to anyone who knows how to obtain it. Most large online corporations are inventing new ways to make fraud more difficult. However, criminals are constantly responding to these developments with new ways to manipulate the system. Even though online retailers are making efforts to protect consumer information, it is a constant fight to maintain the lead. It is advisable to be aware of the most current technology and scams to protect consumer identity and finances. Product delivery is also a main concern of online shopping. Most companies offer shipping insurance in case the product is lost or damaged. Some shipping companies will offer refunds or compensation for the damage, but this is up to their discretion.

Fencing

Fencing is another growing societal problem associated with online platforms.^[60] Stolen merchandise from brick and mortal retailers and cargo are easily resold to the public through third party marketplaces due to lack of accountability and regulation by online operators.^[61] In the United States alone, businesses are facing the brunt of organized retail crime with the value of stolen goods amounting to $68.8 billion in 2021 (equivalent to 1.47% of all sales or $214 per capita nationwide). These goods are typically passed off as legitimate, and resold online to unsuspecting buyers.^[62]

Lack of full cost disclosure

The lack of full cost disclosure may also be problematic. While it may be easy to compare the base price of an item online, it may not be easy to see the total cost up front. Additional fees such as shipping are often not visible until the final step in the checkout process. The problem is especially evident with cross-border purchases, where the cost indicated at the final checkout screen may not include additional fees that must be paid upon delivery such as

but nevertheless, the lack of general full cost disclosure remains a concern.

Privacy

Privacy of personal information is a significant issue for some consumers. Many consumers wish to avoid spam and telemarketing which could result from supplying contact information to an online merchant. In response, many merchants promise to not use consumer information for these purposes, Many websites keep track of consumer shopping habits in order to suggest items and other websites to view. Brick-and-mortar stores also collect consumer information. Some ask for a shopper's address and phone number at checkout, though consumers may refuse to provide it. Many larger stores use the address information encoded on consumers' credit cards (often without their knowledge) to add them to a catalog mailing list. This information is obviously not accessible to the merchant when paying in cash or through a bank (money transfer, in which case there is also proof of payment).

Product suitability

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Many successful purely

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.

See also

References