To Know and Understand Consumers Concerns in Online Shopping

The savvy consumer will choose to shop online or not because of essential characteristics that must be present to suit the personal preference. Of outmost importance is the cost-benefit analysis. Consumers are more likely to shop online and at a particular store because the benefits of doing so out-weigh the costs. But other factors are just as essential are and directly related to the above. We are fast approaching the big holiday spending period (that is, from the end of October to January) and so some of those important factors are presented here. Online business entrepreneurs in particular are usually concerned about the successful prospects of the above period.

To the online consumer (such as myself and others) the benefits of doing financial transactions online must be greater than going to the traditional physical store or business to make a purchase or to complete a transaction. Hence, awareness of the critical elements that determine whether someone will shop online or not trivial. Some of the elements are: Price; Ambiance; Convenience; Service; and Product Variety. Many of us will testify that using the traditional store will offer the benefit of lower price and variety, at least in some cases. But in the 21st century of online or e-business, ambiance, convenience and service delivery are better and more attractive to some of us. We tend to be more attracted to the e-shopping business convenience and dependability than the repetitive or routine procedures at the traditional stores, especially when we are facing a business shopping season or period.

From the simple rental or purchase of a cd to the personal computer, to our pizza and grocery, we are more and more drawn towards online shopping. Saving valuable time and using the time for sports or recreation then become essential to us. E-shopping makes this possible. The lines at our favorite supermarket like Shop-Rite, for example, from the crowding, can discourage us sometimes. This then persuade us to venture into online shopping and the benefits of deliveries at our door, than the stress of driving, using the taxi service or taking the bus after our long shopping is done. We all dislike the crowd (but we love people) because crowding can frustrate us and prevent the achievement of our desired intentions. This can mean lack of business and sufficient sales for the business merchant. Hence, an excellent solution is online shopping or e-business. For our older seniors, e-shopping can be a blessing. Though some may not use the internet, the telephone (a form of e-business) then becomes a necessity. Seniors for examples, are then able to phone in orders than order online and so still receive the benefits of e-shopping. This is also true especially for the disabled and the otherwise physically constrained individual. The pharmacies in particular, for example, are using the method of phone service effectively. This greatly out-weighs the disadvantage of going to the traditional physical store or not being able to do so at all.

On the contrary, we are also made to remember or know that consumers can be disinterested in online shopping because of previous bad experiences. Sometimes poor and slow delivery, lack of real product quality and variety can turn-off the consumer from online shopping. Perishable and fragile goods often get poor reviews from online shoppers in the above respects. The cost of "shipping and handling" can also discourage online shoppers. The smart online merchant is the one who will offer free shipping, or professionally factor-in the cost of shipping in the total cost without any undue increased costs or inconvenience to the precious consumer. Then there are the most important factors of Online Security and Privacy. The online computer savvy consumer will always consider whether his/her personal and financial data are really safe with a particular merchant or online store. Personal preferences and demographic information are also issues of concern to be resolved in deciding to shop online or not. No one really wants their data to be randomly dispersed or without their permission. Not all online merchants are electronically and technically capable of protecting the consumer online. Hence, some people may choose not to transact sensitive business online. Online Store Merchants must successfully prove that consumer data and information are "safe" in the interest of the consumer.

The issue of what consumers will or will not purchase online is another critical interesting point. Food, health and beauty care, vitamins, herbal remedies, beauty aids, household cleaners and pet supplies rank high among the lists researched and established by the experts. Dry goods will receive favorable response, while perishables like flowers or fragile glass products are not favorites. In this perspective, where consumers go to shop online also matter. Most consumers, we are professionally told from research, will go to the web site of a familiar store, keyword search in a web browser, use reliable word of mouth, read about a web site product/service information, rely on advertisement on television or magazines, access information from the radio, billboard, or use other personal means. The top three (3) ways of how consumers locate online shopping sites are: the web site of a familiar store, keyword search in a web browser and by word of mouth. Hence, for online store to be successful, merchants must be very conscious and aware of how to reach consumers, and consumers then need to know how best to personally access an online store to meet their preference and needs. Mutual success then depends on each doing their part. But the online store merchants still need to be very aware of such factors as brand recognition and established reputation, economies of scale in terms of wholesale versus retail operation costs, and experience in the online industry. Greater burden of success or failure will rest on the online entrepreneur than with the consumer so these factors (and others) are important to be understood and properly managed.

In ending, consumers generally regard online stores as more and more essential to their shopping needs. A very high percentage of people who are savvy in computer online procedure will rate online shopping and e-business as necessary and required for the future. Critical factors of cost-benefit analysis, security and privacy, as well as convenience are never overlooked by the consumer. The online store merchant will need to always examine effectiveness of the approach used to reach the consumer and the operation costs in comparison to the benefits received from sales. Both consumers and online entrepreneurs are seeking to meet specific needs that are not always compatible, or at all.