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Read the Kessler Notebook

LifeServ.com

December 5, 2001

Perks and Perils of Online Shopping

Everyone's got something to say about online shopping: "It's the greatest thing since pasteurized eggnog," or "Avoid it like you avoid touching your tongue to a lamppost in winter."

Before you fill your online shopping cart, take a look at the tips and advisories these experts provide.

Buyers Beware
"It's open season for counterfeiters," says Michael G. Kessler, president and chief executive officer of the corporate investigative firm Michael G. Kessler & Associates Ltd. This holiday season will entice multitudes of new Internet consumers. "Now more than ever, let the buyer beware."

Studies on Internet use have estimated that the actual number of web users buying online will escalate from 18 million in 1997 to 128 million in 2002.

"There's lots to love about shopping in a house--with a mouse," says Kessler. "No worrying about weather conditions, store hours, waiting on line or even what you're wearing. The ease of the Internet has lured even the most computer illiterate individuals to learn the magic of a mouse click. Consumers are responding in droves."

According to a recent survey, gone are the days of a singular buying source for holiday shopping. Consumers now have a myriad of options including the Internet. The result could be the strongest spending increase in five years. More than 40 percent of this survey's respondents said they now use the Internet, and nearly two-thirds expect to use it for holiday purchases.

"That's good news for companies, and even better news for criminals," says Kessler. "The Internet enables fakes to participate on the same playing ground as established companies. Computer-savvy criminals can reach an enormous audience simply by constructing an attractive web site. Counterfeiting reaches epidemic proportions during the holidays--not only on the streets, but along the information superhighway."

Cautionary Tips
Kessler advises consumers to protect themselves from becoming victims, ensuring that what they buy is genuine and that the source is legitimate:

  • Understand risks involved with online auction sites (complaints about online auction fraud are rising)
  • Only purchase name-brand merchandise from reputable sources
  • Be leery if prices are significantly below market value.

Ease and Convenience
With a little common sense, online shopping can save time and money, says Suzy Gershman, author of Born to Shop. "Some seb sites make the experience of Internet shopping almost like being at the store, but without the hassle," Gershman says. "Improved visuals, simple,user-friendly shopping menus and security precautions are making e-shopping very attractive to holiday shoppers."

Trend Data
According to data compiled by the Cambridge, Mass.-based Internet and technology research firm Forrester Researcher, approximately 55 percent of online shoppers are focused on finding the best values, rather than shopping online for the sheer convenience of not having to leave home. And those value-conscious consumers make up 80 percent of online purchases under $500.

Out of 29 million households that are online, 10 million are currently shopping online, according to Forrester's findings. Of the 19 million households that are online, but not shopping online, 80 percent are researching their offline purchases.

On the Rise
Forrester projects that 7 percent of retail sales will come from the Internet by 2004, but a far greater percentage of sales will have been researched online, making the Internet an important place for both online retailers and stores.

Reflecting a definitive upward trend in the awareness and usage of online coupons, NPD Online Research, a division of marketing information provider The NPD Group, reports in an October study that nearly one-third of Internet users are pointing and clipping their way to savings via online coupons, compared with 23 percent six months prior.

Potential Cost Savings
"Everyone is interested in saving money," said Steven M. Golden chairman and CEO of CoolSavings.com Inc., a web site that provides its members with coupons and rebates from online and traditional retailers. "CoolSavings brings consumers a variety of savings opportunities targeted to fit their individual household shopping interests."

Online Shopping Tips
"The Giver," personality for Send.com offers five tips for a satisfying online holiday shopping experience this season:

  • Keep stress levels low: The holidays are a time of joy and celebration, so try to avoid the crowded malls, the parking nightmares, the long lines and unhelpful sales staff. Sit back, relax and shop in the comfort of your own home.
  • Beware of shipping charges: When shopping online, the earlier you shop, the less likely you'll be gouged for shipping.
  • Consider the packaging: After all, this is a gift. A package sent directly to the recipient may come in plain brown shipping wrapper, and not in special paper. Your gift to a favorite cousin would not only look unattractive but it's likely to include the invoice with the item cost clearly visible.
  • Get all the answers: Never walk away from an online shopping experience with uncertainty. Make sure the web site provides answers to all your questions.
  • Dare to be different: Online shopping gives consumers access to a wide range of gifts beyond the average pair of slippers or engraved desk clock. Consider a more unusual gift, such as private golf lessons or rounds of golf, spa treatments, restaurant or hotel gift certificates.

Despite the uncertainty of this relatively new shopping venue, its popularity is growing. As the industry continues to hammer out the kinks and improve security, and the public enjoys the increased convenience, cyber-shopping might someday even replace the mega-mall.