Reasons to Like or Dislike Online Shopping

As we all know, e-commerce is booming and this holiday season is expected to be another record-setter. Ernst & Young is reporting in a recent survey that 89 percent of online consumers plan to do some amount of shopping on the Net for the holidays. Ernst & Young exec Stephanie Shern said, "We are projecting online sales for the holiday of $12 to $15 billion. Our estimate of total revenue for calendar year 1999 is $25 to $30 billion."

Even after the holidays, there is no slowdown in sight, with more users coming online and increased bandwidth moving into homes.

The numbers are exciting, but to understand the motivating factors behind them, a closer look is required. A recent study conducted for Deloitte & Touche revealed what turns consumers on and off about online shopping. The study revealed that consumers are experiencing high levels of satisfaction.

Attractions to e-commerce
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71% Can shop at any time
67% Browse without salesperson hassle
65% Saves time
55% Feel that prices are lower
39% Larger selection
37% Quick delivery home
31% No sales tax
22% Dont like shopping in stores

But what we believe is more important are the e-commerce detractions. These areas represent significant problems and are more closely tied to the transaction rather than the webs mere presence.

Detractions to e-commerce
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36% Took too long to receive product
31% Merchandise received was not as represented
16% Problem with customer service department
14% Product sent was incorrect in size/quantity
7% Problem with return

Once online merchants address these issues effectively, then brick-and-mortar businesses will be in for the real shock.

About the Author

Robert McKim

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DBMarkets@aol.com
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