Online Shopping

CPSC 203 T32 Group 4
 Group Members: Kyung Ho Choi, Lincoln Van Dijk, Leigh Woefle, Jordan Stevenson Group Contact: 1-403-880-3633

Introduction
Today is topic is Online Shopping. We will go over few advantages and disadvantages to reason why Online Shopping is positive experience.

Arguement
Despite fears consumers may have, there are many benefits that online shopping provides which far outweigh the disadvantages. Because, of the constant development of technology, demand of Web Based Shopping is still going up. Also, with more than 500 million users online worldwide in 2003, It is a great benefit to society. Overall, online shopping is a positive experience.

History of Online Shopping
During the 1960’s, few businesses were using computer networks to conduct electronic transaction, such as Electronic Data Interchange (EDI) and Electronic Funds Transfer (EFT). With this system, a company was able to transfer business documents like invoices, order forms, funds and shipping confirmation with other company’s computer. However, we can also say that internet shopping was actually introduced by CompuServe, the first popular networking services for home PC users. In 1980s, CompuServe added a service that allowed purchasing items directly from more than 100 online merchants. This service was one of the foundations of ecommerce as we know it today. In 1990, Tim Berners Lee wrote the first web browser, WorldWideWeb, using a NeXT computer, and this lead the e-commerce to be Web based. Following this event, web-based online banking was developed. •Charles Stack created the first online book store, Books.com, in 1992 •Online pizza shop by Pizza Hut was released in 1994

A web browser such as Netscape was release including a security protocol called SSL. This allowed receiving and sending encrypted codes of names, addresses, phone numbers, and credit card numbers. In addition, these were the first third-party services for processing online credit card sales and services. It allowed to verify the identity, transaction and the transfer of credit through the Internet. In mid 1990’s, two popular web-based stores; Amazon and eBay, were created.

•Amazon.com was created by Jeff Bezos in 1995. He shipped books from his garage and later on he began to ship out CD-Rom, toys, electronics, clothing and games directly from the retailer and publishers. Amazon was first to provide the reader’s review option feature.

•eBay.com was founded by a computer programmer Pierre Omidyar as AunctionWeb. This name later changed to eBay. eBay, unlike Amazon.com, allowed users to auction on a item they chose to buy or buy directly from the other user without bidding. This online auctioning was a great success for eBay. Subsidiary of eBay, PayPal is a internet service that allows payments and money transfers through the Web.

There are many other internet based stores, however, they all use similar idea's of processing and servicing users. In today’s world, with about 22% of world population using the Internet, internet shopping is and will be the key industry for any society.

'Step by Step' to use Internet Shopping
Online shopping has completely revolutionized the shopping experience! Traffic, crowds and pushy salespeople can all be avoided and you can now get all you shopping done without leaving the comfort of your home, or even changing out of your pajamas! Just follow these simple steps:

Step 1: Browse through the “mall” (internet) and select “store” (website).

Step 2: “Look around the store” (browse the catalogue) or ask a “salesperson” (search function) to find what you are looking for directly.

Step 3: After reading descriptions and reviewing images, select desired items and place in “shopping cart” (shopping cart). Just as in any store, this does not mean you have purchased the items yet. With a simple click of the mouse you can put the items “back on the shelf”.

Step 4: When you decide you have everything you need, proceed to the “cashier” (checkout). Here totals, GST, and shipping costs are calculated.

Step 5: When satisfied with prices (remember coupons are accepted online to!) present the “cashier” with payment (credit card and shipping information) Note: Most internet shopping sites take great precautions to protect your credit card information but you should always read the sites privacy agreement.

Step 6: A “receipt” (confirmation screen) will be presented. For returning purposes these should always be kept (printed off).

Step 7: Relax and wait for your purchases to arrive! Congratulate yourself on graduation to shopping in the 21st century!

Advantages of Internet Shopping
There are several advantages to shopping online; however, the most beneficial of those is, of course, convenience. First and foremost, online shopping allows customers to shop from the comfort of their own homes, at any time, without any time limitations due to the fact that the internet is open 24 hours, 7 days a week. Online shopping is a global market and allows customers to browse various items in many different categories at once, including items that may be hard to find in stores, such as comic books, coins, art, etc., as well as items that are located in different countries and would otherwise be unattainable in stores near by.

By shopping online, people are able to more easily compare prices and features, as well as exchange information with other online shoppers, via chat and discussion forums, to get helpful feedback or opinions on their consumer decisions. Online shoppers are able to order as many items as they can afford up front since online shopping sites deliver purchases straight to the buyer’s home. Also, certain deals are sometimes offered, such as free shipping and handling if purchase is over a certain amount.

In addition to the benefit of convenience to individuals, online shopping also provides certain gains to society. By shopping online, consumers not only get the benefit of shopping without being bothered or pressured by vendors, but society saves on human resources, since there is no need for these vendors.

Disadvantages of Internet Shopping
One of the biggest obstacles within e-commerce is having a client base confident in the business ability to protect their personal and financial information from theft.

According to a research survey released on Jun 3, 2008 by CA Inc. (IT Management Software Company) stated that only 7% of those who participated were “very confident” in Canadian retailers, banks and government to protect their personal information from theft. 84% questioned the lack of initiative retailers have in providing the financial backing to provide a secure foundation for e-commerce to take place. Even 39% of Canadian Security Executives stated that they believe their respective companies IT Budget invested to small of an amount into their security systems.

Another study done by C.A.A.S.T (Canadian Alliance Against Software Theft) indicated that consumers may know about potential threats, very few actually understands threats such as phishing (Emails requesting personal information) and Spyware (software designed to infiltrate personal computers). Therefore leaving the public vulnerable to online theft, though according to Lanny McInnes, (Manitoba-Saskatchewan Provincial Director for the Retail Council of Canada, RCC) there is a direct correlation between the amount of e-commerce conducted by consumers, whether it is banking or shopping, and the level of trust and confidence those consumers have with the institution. This being said, we can expect a huge increase in security investments over the next few years as it works out to be a win-win situation for both Businesses and Consumers.

Cross-border issues can also be potential problem and extra precautions should be taken if buying products from out of the country. There are often extra fees such as duties, brokerage and exchange that are not disclosed up front. The buyer may only be made aware of them after the item arrives at their door. There are websites that specifically assists Canadians in obtaining the final Canada Price from the US when shopping cross-border, but it is often best to contact the merchant and obtain a written quote before completing the purchase.

Improvement
Institutions have been developing solutions to these problems and many are on the cutting edge of increasing security for online users.

- Microsoft is developing an “info card”, which comes as an addition to its regular software which will verify whether or not a Web Site asking for one’s personal information is an “authentic real” user. Essentially making sure that the request is legitimate.

- Credentica Inc. is company founded by Stefan Brands, a professor at McGill University who is developing “virtual currency” called e-cash. This “currency” allows client’s to purchase anonymously from websites.

- CyBux developed by Clayton Moore, is according to Moore the “world’s first truly anonymous and secure system for buying online without a credit card.” CyBux uses a card that is much like a credit card however combines cash card technology with a personal ID number. The client can load money onto the card using the telephone, online or ATM machines. Unused funds are held by Cybux in no-interest trust account, which cannot be accessed by anyone except the client. The benefit of such a system is that the funds are protected by Cybux regardless of whether the card is lost or stolen.

According to C.A.A.S.T, 64% of Canadians feel that even a symbol indicating a company’s Web Site as “safe” would increase their comfort for purchasing goods from the company. Therefore keep an eye out for Cybux, BBB - Better Business Bureau – (Which requires compliance to a set of retail standards to be a member), Shopify and PayPal Symbols before making an online purchase.

Statistics of Internet Shopping Usage
1. 52% of Internet Shoppers earn more than $70,000 a year.

2. Female shoppers tend to be more dominant, between the ages of 24 and 35.

3. Woman’s Clothing tends to be the #1 with Health & Beauty being a close #2. 4. Most online shoppers are between the ages of 18-44 with the core age being 18-24.

5. Average Individual Online Shopping was $891 in 2006 and expected to rise to $1,295 in 2009.

6. Between 53%-63% of Canadians Shop Online.

(Research Conducted by: Borderfree.ca & NPD Group –November 2007)

Who is buying what:

MEN – men mostly buying computers, CDs and videos

– 12.6 million male shoppers research automobiles and buy auto parts

– 9.4 million men buy computers online

WOMEN – number of women buyers up 80%

– 9.6 million women bought books, CDs and videos

– 6.9 million women buy clothing online

– 6.4 million women buy computers online



Conclusion
Now that we have investigated online shopping we have addressed the advantages & disadvantages looked at its history and even how it works. Providing a broad perspective of online shopping and how it’s influencing and shaping our day to day lives. Online shopping is a dynamic topic constantly changing to meet the needs of its clientele. Overall, it’s bound to be a positive experience regardless of who and where you are.