Online Shopping Basics

Benefits Can be cheaper than buying in the store Why? Large number of web sites = more competitive prices Example….# of in-store vs. online options Economy of scale Large companies can afford to drop prices below competitors No sales taxes on many purchases* Tax loophole No longer true for Amazon in Indiana Large product selection Convenient No traveling needed

Drawbacks Shipping Privacy/Security No immediate customer support* Costs, condition, and time Privacy/Security Increased potential for identity theft, scams, fraud, etc No immediate customer support* *for most online retailers Unable to physically examine the items Can’t check its condition, its size, feel in your hand, etc.

Products To Think Twice About Buying Online Perishable items Things that expire quickly (fresh food) Fragile/Delicate items Could break during shipping Ex. Large electronics Pharmaceutical Drugs Safe? Size-specific items (ex. Clothing) Will they fit? Used items (ex. Cars) How reliable is the seller and/or the item?

Previous Customer Online Reviews The Good Can help you decide if a product is worth your money Can help you decide if a website is worth doing business with The Bad Companies can post their own positive reviews of themselves or their products Competing companies can create false reviews of each other and their products Not everyone has the same expectations & experiences as what you might have

Quick Review What are some reasons why it is beneficial to shop online? Product variety, low cost, convenient, etc What are some reasons why it is not beneficial to shop online? Shipping costs and time, security issues, no immediate customer support, etc Why should you be careful about trusting online reviews of products or websites? They can create their own positive reviews, competitors can create fake negative reviews, not everyone has the same expectations or experiences