Keywords: online shopping problems, online shopping critique, online shopping analyss
Abstract
Internet shopping has become increasingly more popular nowadays, however, some consumers are still reluctant to purchase online due for some perceived risks. The purpose of this newspaper is to expose internet shopping, seeking to analyze problems facing it and discover corresponding solutions to ensure e-commerce expansion. To be able to provide a concrete picture, the paper will also illustrate measures which have been carried out by eBay to use effectively.
Introduction
Due to the popularization of internet consumption, people begin to get familiar with this multifunctional tool, which lead to the boom of internet shopping. According to Hsiao (2008), people's daily lives have drastically changed before a decade, which stems from the application of online shopping, saving the stop by at physical shops compared to offline shopping. Such a new kind of shopping style can be called in a variety of ways as e-shopping, network shopping, web-based shopping, online shopping or Internet shopping (Hsiao, 2008).
Identified by Hsiao, internet shopping has reduced exchange and search costs (both in terms of time and money) In comparison to other types of shopping, that consumers usually can shop faster, choose from a wider selection, and order from the vendor with the lowest price. First of all, with the aspect of shop speed, you don't have to travel to stocks and department stores by using online shopping, which definitely will save cost and time that thought as two common consumer resources, resulting in the accumulation of clients' power. Nevertheless, it is the opposite case to the offline shopping. Second, as for the variety of selection, because consumers can access to various information through the web by easily hitting the hyperlinks, almost all of which interlink to other information about the world and some even distribute virtual signs. Thus, the info quantity of internet shopping is considered more advanced than store shopping. Lee et al. (2003) advised that afflicted by the increase of internet use, the economic value on the information will appreciate eventually. Third, in general, consumers can spend less by purchasing online, even though they have to afford the delivery cost sometimes. By keeping of overhead and maintenance of store fronts, online stores are able to sell products at lower prices than physical stores (Hsiao, 2008).
However, despite internet shopping is effective, some individuals are still reluctant to buy online credited to apparent barriers, such as financial risk, internal risk, product performance risk and time/convenience risk recognized by Jacoby and Kaplan. The goal of this study is to investigate the risks, suggest corresponding solutions utilizing the case of eBay, which finally improve the development of e-commerce. The next section will identify the four dangers mentioned previously, including definitions and solutions. The 3rd section will feel the circumstance of eBay, talking about the measures performed by it, checking those to get the most essential one. The final section will pull conclusions about the challenge.
Risks facing internet customers and matching solutions
As mentioned above, internet shopping keeps growing rapidly because of its power in faster shopping, wider selection and lower price. Nonetheless, some dangers which represent a concern with loss in a particular transaction remain identified by consumers, which cools down people's desire to get online so as to impede the development of e-commerce. Brooker et al. have identified six types of identified risk: financial, mental health, product performance, sociable, physical and time/convenience loss (Brooker, 1984; Jacoby and Kaplan, 1972; Peter and Tarpey, 1975; Garner, 1986; Mitchell, 1992; Schiffman and Kanuk, 1994). This newspaper will check out four out of these six types of risk-financial, psychological, product performance and time/convenience reduction that were ranked as most widespread among Internet customers (GVU's 10th WWW Individual Research, 1998).
In general, trust is the key to solve the impact of perceived hazards. Mayer et al. (1995: 726) stated that, "If the amount of trust surpasses the threshold of perceived risk, then the trustor will take part in the risk-taking in relationship. If trust is not set up, risk will expand, thus trades will fail (Jarvenpaa & Tractinsky, 1999; Luhmann, 1988). Josh Boyd (2002) announced that trust is weakest at the starting, it accumulates with repeated relationships. The more successful interactions happen, the bigger trust will exist (Josh Boyd, 2002). Then the focus actually is what actions can be studied equivalent to different hazards to be able to improve trust, which is illustrated below.
Financial risk
Financial risk identifies the net loss of money to customers, for instance, the risk of misapplication of visa or mastercard, which is a typical one. People feel troubled when they shop online, because they believe credit card information is at the mercy of be divulged via internet. The reluctance of providing credit card information becomes one obstacle of internet shopping (Sandra M. Forsythe, Bo Shi, 2003). In addition, during online deals, people are always necessary to pay beforehand before receiving the goods. Thus, there goes up a worry about no receipt of goods at the trouble of money.
Recommended by Karim Jamal, Shyam Sunder and Rong-Ruey Duh, to safeguard shoppers' interest, online trading systems can utilize escrow program and insurance. The previous makes payments through an authorized that helps to keep money until getting potential buyers' Authorization once they obtain goods and are satisfied with the quality. Usually, the get together will return the money to buyers. The latter refers to a programme made to compensate potential buyers with good reputation for the loss of not receiving merchandise or service (Karim Jamal, Shyam Sunder and Rong-Ruey Duh, 2002).
Psychological risk
Psychological risk is thought as the sense of discouragement, dissatisfaction and disrepute stem from the disclosure of one's private information. Consumers think others may easily get their information through internet, which threaten their level of privacy (Sandra M. Forsythe, Bo Shi, 2003).
This risk may very well be fixed right out of the way to obtain the bad sentiment, which is the revealment of private information. Online trading platforms may increase the security of information storage space, protect the safeness of information consumption and check out the illegal usage of prompt the online shopping environment in order to attract more website visitors.
Product performance risk
Product performance risk shows the increased loss of low quality of products, caused by misjudgment as consumers are unable to accumulate sensuous information online (Sandra M. Forsythe, Bo Shi, 2003).
According to Dr. Wolf (2007), the web trading websites can firstly allocate sufficient resources in to the inspection of product quality, including recruiting and system opportunities, fight bad entries and retailers. Then it can educate users and create understanding on fraudulent and low quality products. Finally, keep a detailed cooperation with police.
Time/convenience risk
Time/convenience risk represents a threat of loss with time and convenience because of problems with locating a right web page, searching correct information, making a bet, and receiving products (Sandra M. Forsythe, Bo Shi, 2003).
To increase the efficiency in searching stage, online trading platforms might need to establish distinct web pages, supply some useful tools, and offer web manuals to help shoppers to find certain information. Bernd W. Wirtz and Nikolai Lihotzky offered that establishing a specific website into consumer's Internet Explorer as the homepage is a common alternative to integrate technical. In addition, installing plug-ins in to the browser with the form of tool pub or menu item makes it more powerful.
As for the delivery period, Chaug-Ing Hsu, Hui-Chieh Li proven that discriminating service strategy produces more objective value than uniform service strategy for both Internet store providers and consumers, which takes time demand under consideration.
Case study
eBay, as a major global online marketplace, where anyone can trade just about anything through internet, is reported to own $1900 worth of offer every second in 2007. By June 30, 2009, it increased to 88. 4 million active users worldwide, making a surprise in e-commerce that has many recognized hazards by consumers (www. ebay. com). This section investigates functions in eBay in order to gain some motivation to handle the four risks mentioned above.
solutions to financial risk
Considering consumers' be anxious of misuse of credit card information, eBay Inc. bought Paypal, a worldwide leader in online payment solutions, in Oct 2002, which uses the most exceptional exclusive fraud prevention systems, allowing any individual or business with a contact address to safely, easily and quickly send and receive payments online. When using Paypal, the visa or mastercard information is placed in its server, thus protecting against sellers from knowing that information. On the other hand, the payment process completes immediately as the money transfers right to the seller's bank account. Then, customer can observe the progress of the payment by My eBay or Paypal profile. Additionally, Paypal also provide Buyer Protection in case there is non-receipt of item or dramatical difference from seller's description. This programme addresses eligible transactions for the full price plus original shipping and delivery charges. To be able to use Paypal, individuals are required to bind the eBay and Paypal accounts together and validate the address with it.
solutions to psychological risk
As the bad emotion of this risk comes from the disclosure of private information, keeping these details private plays an important role along the way to solve the challenge. Stated by eBay, they treasure the data as valuable property, so store them on their servers located in America by using variety of methods (password, encryption, physical security, etc. ) to prevent unlawful entrance and vulnerability, unauthorized disclosure to alternative party for marketing goal as well. They also utilize Cookies, the majority of which are time cookies that can fade away by itself soon after logging out from eBay or exiting from the net pages, to lessen the times of inputting passwords, thus enforcing trust and security. Another warrant of eBay is that they forbid distributing spam or spyware through their communication tools by automated scan and manual filter.
solutions to product performance risk
Josh Boyd advised that each identities combined with feedback ratings and symbols comprise a trust-building function at eBay which can reduce product performance risk recognized by consumers. Community users choose their own usernames to keep up specific identities used to distinguish one another. Feedback ratings are the numbers show up next to one's username, computed by the amount of positive commentary minus that of negative ones talking about the patterns of an individual during past deals. A higher amount means a good reputation, ensuing out more investors to involve in the trade with that person. By hitting the rating, there will arise more details about the comments, including negative, positive, as well as neutral ones. To maintain the very least performance level from all sellers, eBay sets out specific amount of precise owner ratings (DSRs) from the areas of communication, delivery time, shipment fees and items. Vendors who do not meet up with the requirement will be forbidden to join up new accounts or use the old ones to bypass any restrictions as a punishment. Symbols also show up after usernames, reflecting the status of the user and reminding potential bidders or sellers of the recent change in position or new comers. For example, a set of sunglasses implies the recent change of status while stars of various colors symbolize certain levels of experience.
To sum up, the username distinguish individuals, the responses rating reflects the quantity of positive experience achieved by different individuals, and the icon creates the status in line with the feedback rating. The bigger status, the more merchants will be drawn. The desire to get or maintain privileged status motivates people to follow eBay's guidelines (Josh Boyd, 2002).
Solution to time/convenience risk
To deal with time/convenience risk, eBay Toolbar is a wise choice, with which buyers can log into My eBay as well as your alerts quickly, seek goods successfully in eBay. com, eBay Motors, 50 percent. com and much more, as well as manage items properly. For instance, when looking items online, consumers can access both Web and the eBay, modify the appearance of final result list corresponding to different facets of individual referrals, such as location, buying format, distance. Then during the management period after the selection of goods, desktop notifications of the eBay Toolbar provides buyers with well-timed notifications to avoid neglecting any items that may be overdue. Dealers can also surf their buying and selling status right through the desktop rather than logging in, which will save lots of time.
Considering the shipping and delivery level, eBay adopts a discriminating service strategy which gives various delivery types in order to meet different needs towards time demand. For instance, in USA, there are options like Next Day Air, 2nd Day Air, 3 Day Select amongst others, which takes equivalent time to deliver goods.
Comparison of solutions
Although financial risk, subconscious risk, product performance risk and time/convenience risk reveal concerns on money, psychology, product, time respectively, which will vary dimensions of consumer utility, They go hand in hand, which means that once one aspect of solution happen, it will prompt other solutions to perform.
What's more? The process behind all the alternatives is to generate customer's trust. In case a business succeeds in increasing its customers' trust, the customers' perceived risk within the business enterprise marriage is reduced.
Conclusion
Although internet shopping is a lot more convenient than off-line shopping to some extent, such as faster quickness, wider selection and cheap, there are still many issues with internet shopping.
According the description of eBay's practice, we can find that the vast majority of the alternatives encircle a vital question that is developing customers' rely upon e-commerce. From evaluation, we can bring a final result that if this question can be solved appropriately, the business will probably grow quickly.
