Reda (2004, 106) found “Online sales rocketed 51% to $114 billion�, yet many people are still hesitant about shopping online. 69% of internet shoppers felt that online retailers should do more to make them feel secure, yet only 15% reported to know others who had experienced credit card misuse (M2 Presswire 2004). Richardson (1998, 56) advocated her trust for online shopping when she claimed, “The truth is that it's probably safer than handing your card to a waiter you've never seen before�.
Many online retailers employ a number of security measures, including cryptography and authentication to help keep online transactions as safe as possible. Camp (2000, 57) stated “Cryptography can provide authentication and integrity for electronic transmissions if properly implemented�. Camp also (2000, 73) defined authentication as “the goal of knowing that a particular user is authorized to take an action, for example, authorizing a charge to an account�. Personal identification numbers (PIN) and passwords are the most widespread types of authentication.
As well as security being a key issue, Ghosh (2001, 1) believed “privacy concerns have become the number one concern for consumers�. To further ease customer apprehension, many online retailers provide privacy statements which state their stance on sharing customer information with other businesses. Many companies stated that they did not share customer details. In addition to this, online retailers also employ cryptography to ensure that computer hackers cannot easily obtain any stored personal information that companies keep regarding their customers. Ghosh (2001) observed that some companies only installed privacy and security measures after problems had occurred. Their lack of preventative methods was attributed towards the difficulty of implementing security measures, the high costs associated with these measures, and the continual need to update programs as new technologies and threats emerged.
Camp emphasised “Customer trust is the critical variable� and believed that “The more a customer trusts a site, the higher the price the site can charge for what it sells� (2000, 41). Credit card is still the main method of payment used for making purchases from online retailers, although some online retailers now offer alternate payment systems to credit cards. These substitutes include DigiCash, CyberCash/CyberCoin, Mondex and Smart Cards. Some customers were also concerned about their lack of involvement with online purchases. Being unable to handle and inspect goods personally was a major drawback. Products such as clothes, which customers often needed to try on, posed a hassle for online buyers. Although clothing measurements were often provided, many shoppers would not know their own measurements. Internet shoppers also found that furniture was difficult to buy as they were unable to test them for comfort. Online retailers often attempt to alleviate these concerns and encourage sales by offering refund policies.
Ghosh stated (2001, 29) “Internet-based transactions expect to make up 25 percent of all retail transactions in the next decade�, therefore it is imperative for online retailers to continue to provide a secure, private and trustworthy shopping environment for their customers. Those who can best provide this climate for online shoppers will be the retailers who attract the most customers, and ultimately enjoy the most profits.
Related Links
More information on Privacy.
More information on Credit Cards & Security.
More information on Cryptography.
Return to Online Retail
Julietsneddon 14:55, 26 Oct 2004 (EST)
