View source for Online shopping

{{Short description|Form of electronic commerce}}
{{Redirect|Web store|the W3C storage standard|Web storage}}
{{pp-semi-indef|small=yes}}
[[File:Shopping online with bank card.jpg|thumb|A person using their credit card to make a purchase online]]
{{Ecommerce}}
{{Internet}}
'''Online shopping''' is a form of [[electronic commerce]] which allows [[Consumer|consumers]] to directly buy [[good (economics)|good]]s or [[Service (economics)|services]] from a seller over the [[Internet]] using a [[web browser]] or a [[mobile app]]. Consumers find a product of interest by visiting the [[website]] of the retailer directly or by searching among alternative vendors using a [[shopping search engine]], which displays the same product's availability and pricing at different e-retailers. {{asof|2020|post=,}} customers can shop online using a range of different computers and devices, including [[desktop computer]]s, [[laptop]]s, [[tablet computer]]s and [[smartphone]]s.

Online stores that evoke the physical analogy of buying [[product (business)|product]]s or services at a regular [[Brick and mortar business|"brick-and-mortar"]] [[Retailing|retailer]] or [[shopping center]] follow a process called [[business-to-consumer]] (B2C) online shopping. When an online store is set up to enable businesses to buy from another business, the process is instead called [[business-to-business]] (B2B) online shopping. A typical online store enables the customer to browse the firm's range of products and services, view photos or images of the products, along with information about the product specifications, features and prices. Unlike physical stores which may close at night, online shopping portals are always available to customers.

Online stores usually enable shoppers to use "search" features to find specific models, brands or items. Online customers must have access to the Internet and a valid [[#Payment|method of payment]] in order to complete a transaction, such as a [[credit card]], an [[Interac]]-enabled [[debit card]], or a service such as [[PayPal]]. For physical products (e.g., paperback books or clothes), the e-tailer ships the products to the customer; for [[Digital product design|digital products]], such as [[digital audio file]]s of [[song]]s or [[software]], the e-tailer usually sends the file to the customer over the Internet. The largest of these online retailing corporations are [[Alibaba Group|Alibaba]], [[Amazon.com]], and [[eBay]].<ref>{{cite news |title=The Alibaba phenomenon |work=The Economics |date=March 23, 2013 |url=https://www.economist.com/news/leaders/21573981-chinas-e-commerce-giant-could-generate-enormous-wealthprovided-countrys-rulers-leave-it/ }}</ref>

==Terminology==

Alternative names for the activity are "[[e-commerce]]", a shortened form of "electronic commerce" or "e-shopping", a shortened form of "electronic shopping". An online store may also be called an e-web-store, e-shop, e-store, Internet shop, web-shop, web-store, online store, online storefront and virtual store. Mobile commerce (or [[m-commerce]]) describes purchasing from an online retailer's mobile device-optimized website or [[software application]] ("app"). These websites or apps are designed to enable customers to browse through a companies' products and services on [[tablet computer]]s and [[smartphone]]s.{{Citation needed|date=January 2024}}

==History==
=== History of online shopping ===
One of the earliest forms of trade conducted online was [[IBM]]'s [[online transaction processing]] (OLTP) developed in the 1960s, which allowed the processing of financial transactions in [[Real-time computing|real-time]].<ref name=":0">{{Cite book|title=The Internet: A Historical Encyclopedia: Chronology. Vol. 3, Volume 3|last=Lambert|first=Laura|publisher=ABC-CLIO|year=2005|isbn=978-1-85109-659-6|location=Santa Barbara, CA|page=100}}</ref> The computerized ticket reservation system developed for [[American Airlines]] called [[Sabre (computer system)|Semi-Automatic Business Research Environment]] (SABRE) was one of its applications. There, computer terminals located in different travel agencies were linked to a large IBM mainframe computer, which processed transactions simultaneously and coordinated them so that all travel agents had access to the same information at the same time.<ref name=":0" /> At some point between 1971 and 1972, students at Stanford and MIT used the internet precursor [[ARPANET]] to make a deal to exchange [[Cannabis (drug)|marijuana]], but the interaction does not qualify as [[e-commerce]] because no money was transferred online.<ref>{{Cite web |last1=Magazine |first1=Smithsonian |last2=Fessenden |first2=Marissa |title=What Was the First Thing Sold on the Internet? |url=https://www.smithsonianmag.com/smart-news/what-was-first-thing-sold-internet-180957414/ |access-date=2022-03-25 |website=Smithsonian Magazine |language=en}}</ref>

The landscape of online shopping as we know it today took shape with the rise of the Internet.<ref>{{Cite book |last1=Botha |first1=J. |title=Managing E-commerce in Business |last2=Bothma |first2=C. |last3=Geldenhuys |first3=P. |publisher=Juta and Company Ltd |year=2008 |isbn=978-0-7021-7304-2 |location=Cape Town |page=3}}</ref> Initially serving as a mere advertising platform, the Internet transitioned swiftly into a dynamic space for actual online transactions. This transformation was fueled by the development of interactive web pages and secure transmission protocols,<ref>{{Cite book |last=Zinkan |first=George |title=Advertising Research: The Internet, Consumer Behavior, and Strategy |publisher=American Marketing Association |year=2011 |isbn=978-1-61311-271-7 |location=Chicago |page=33}}</ref> marking a pivotal moment in 1994 with the first online sales of [[Sting (musician)|Sting]]'s album, ''[[Ten Summoner's Tales]]''.<ref>{{Cite news |date=2014-08-11 |title=Shop Direct celebrates 20 years of online shopping |url=https://www.shopdirect.com/shop-direct-celebrates-20-years-online-shopping/ |archive-url=https://web.archive.org/web/20180207005148/https://www.shopdirect.com/shop-direct-celebrates-20-years-online-shopping/ |archive-date=2018-02-07 |access-date=2016-12-12 |newspaper=Shopdirect.com |language=en-GB}}</ref>

This milestone event set the stage for the diversification of online retail, with early adopters such as wine, chocolates, and flowers paving the way. These products became pioneers in the e-commerce realm, capturing the attention of a growing audience. Researchers identified a crucial factor for internet success – the suitability of products for online transactions.<ref>{{Cite journal |last1=Doherty |first1=N.F. |last2=Ellis-Chadwick |first2=F. |last3=Hart |first3=C.A. |year=1999 |title=Cyber retailing in the UK: the potential of the Internet as a retail channel |url=https://dspace.lboro.ac.uk/2134/8334 |journal=International Journal of Retail & Distribution Management |volume=27 |issue=1 |pages=22–36 |doi=10.1108/09590559910252685 |s2cid=55847148}}</ref> Generic items that didn't necessitate physical interaction gained traction, propelling the online shopping trend forward.

In its nascent stages, online shopping faced a limited audience. The early adopters were predominantly affluent males aged 30 and above. However, this demographic landscape underwent significant changes over time, and the online shopping sphere became more inclusive.

Over the years, the United Kingdom has witnessed a substantial shift in consumer behavior, with online shopping accounting for a noteworthy percentage of retail transactions. The extent of this influence varies depending on the product category, highlighting the diverse ways in which consumers engage with online platforms.

=== Growth in online shoppers ===
As the revenues from online sales continued to grow significantly researchers identified different types of online shoppers, Rohm & Swaninathan<ref>{{Cite journal|last1=Rohm|first1=Andrew J|last2=Swaminathan|first2=Vanitha|date=2004-07-01|title=A typology of online shoppers based on shopping motivations|journal=Journal of Business Research|series=Marketing on the web – behavioral, strategy and practices and public policy|volume=57|issue=7|pages=748–757|doi=10.1016/S0148-2963(02)00351-X}}</ref> identified four categories and named them "''convenience shoppers, variety seekers, balanced buyers, and store-oriented shoppers''". They focused on shopping motivations and found that the variety of products available and the perceived convenience of the buying online experience were significant motivating factors.  This was different for offline shoppers, who were more motivated by time saving and recreational motives.

[[File:Michael Aldrich 2010.JPG|thumb|[[Michael Aldrich]], pioneer of online shopping in the 1980s]]
English entrepreneur [[Michael Aldrich]] was a pioneer of online shopping in 1979. His system connected a modified domestic TV to a real-time transaction processing computer via a domestic telephone line. He believed that [[videotex]], the modified domestic TV technology with a simple menu-driven human–computer interface, was a 'new, universally applicable, participative communication medium — the first since the invention of the telephone.' This enabled 'closed' corporate information systems to be opened to 'outside' correspondents not just for transaction processing but also for e-messaging and information retrieval and dissemination, later known as [[e-business]].<ref>{{Cite web |url=http://www.aldricharchive.com/papers/1982/Videotex%20Communications%20Dec%2782.pdf |title=1982 ''Videotex Communications, Collected Papers'' Aldrich Archive, University of Brighton December 1982 |access-date=2014-01-07 |archive-date=2014-11-27 |archive-url=https://web.archive.org/web/20141127075106/http://www.aldricharchive.com/papers/1982/Videotex%20Communications%20Dec%2782.pdf }}</ref> His definition of the new mass communications medium as 'participative' [interactive, many-to-many] was fundamentally different from the traditional definitions of [[mass communication]] and [[mass media]] and a precursor to the social networking on the [[Internet]] 25 years later. In March 1980 he launched Redifon's Office Revolution, which allowed consumers, customers, agents, distributors, suppliers and service companies to be connected online to the corporate systems and allow business transactions to be completed electronically in real-time.<ref>{{Cite web |url=http://www.aldricharchive.com/cuttings/1980/ols%20may%2080.pdf |title=1980 '' TV paves the way for Information Brokerage, Minicomputer News'' p. 12 London May 1980, the most comprehensive report of the March 1980 Press Conference launching the Redifon R 1800/50 computer system. Is 'Information Brokerage' aka 'browser industry'? |access-date=2014-01-07 |archive-date=2012-03-01 |archive-url=https://web.archive.org/web/20120301060525/http://www.aldricharchive.com/cuttings/1980/ols%20may%2080.pdf }}</ref> During the 1980s<ref>{{Cite web |url=http://www.aldricharchive.com/downloads/anhc-33-4-anec-aldrich.pdf |title=2011 M. Aldrich 'Online Shopping in the 1980s' IEEE 'Annals of the History of Computing' Vol 33 No4 pp57-61 October–December 2011 ISSN 1058-6180 |access-date=2014-01-07 |archive-date=2017-11-18 |archive-url=https://web.archive.org/web/20171118010024/http://www.aldricharchive.com/downloads/anhc-33-4-anec-aldrich.pdf }}</ref> he designed, manufactured, sold, installed, maintained and supported many online shopping systems, using videotex technology.<ref>{{Cite web |url=http://www.aldricharchive.com/cuttings/1980/ols%20july%2080.pdf |title=1980 ''Checking on the check-outs, Financial Times'' London 12 July 1980 |access-date=7 January 2014 |archive-date=3 March 2016 |archive-url=https://web.archive.org/web/20160303231857/http://www.aldricharchive.com/cuttings/1980/ols%20july%2080.pdf }}</ref> These systems which also provided voice response and handprint processing pre-date the Internet and the [[World Wide Web]], the [[IBM Personal Computer|IBM PC]], and [[Microsoft]] MS-DOS, and were installed mainly in the UK by large corporations.

The first [[World Wide Web]] server and browser, created by [[Tim Berners-Lee]] in 1989,<ref>{{Cite journal|last1=Berners-Lee|first1=T.|last2=Dimitroyannis|first2=Dimitri|last3=Mallinckrodt|first3=A. John|last4=McKay|first4=Susan|date=1994|title=World Wide Web|journal=Computers in Physics|language=en|volume=8|issue=3|page=298|doi=10.1063/1.4823300|bibcode=1994ComPh...8..298B|doi-access=}}</ref> opened for commercial use in 1991.<ref name="kimpalmer">Palmer, Kimberly.(2007) News & World Report.</ref> Thereafter, subsequent technological innovations emerged in 1994: online banking, the opening of an online pizza shop by [[Pizza Hut]],<ref name="kimpalmer" /> [[Netscape]]'s [[Secure Sockets Layer|SSL]] v2 encryption standard for secure data transfer, and [[Intershop Communications|Intershop]]'s first online shopping system. The first secure retail transaction over the Web was either by [[NetMarket]] or Internet Shopping Network in 1994.<ref>{{cite news|url=http://news.cnet.com/E-commerce-turns-10/2100-1023_3-5304683.html|title=E-commerce turns 10|last=Gilber|first=Alorie|newspaper=CNet|date=11 August 2004|access-date=29 October 2014|archive-url=https://web.archive.org/web/20141029085654/http://news.cnet.com/E-commerce-turns-10/2100-1023_3-5304683.html|archive-date=29 October 2014}}</ref> Immediately after, [[Amazon.com]] launched its online shopping site in 1995 and eBay was also introduced in 1995.<ref name="kimpalmer"/> [[Alibaba Group|Alibaba]]'s sites [[Taobao]] and [[Tmall]] were launched in 2003 and 2008, respectively. Retailers are increasingly selling goods and services prior to availability through "[[pretail]]" for testing, building, and managing demand.{{citation needed|date=February 2015}}

==International statistics==
Statistics show that in 2012, Asia-Pacific increased their international sales over 30% giving them over $433 billion in revenue. That is a $69 billion difference between the U.S. revenue of $364.66 billion. It is estimated that Asia-Pacific will increase by another 30% in the year 2013 putting them ahead by more than one-third of all global e-commerce sales.{{update after|2014}} The largest online shopping day in the world is [[Singles Day]], with sales just in [[Alibaba Group|Alibaba]]'s sites at US$9.3 billion in 2014.<ref>{{cite web |url= https://www.techinasia.com/tmall-ceo-year-alibaba-plans-singles-day-global/|title= Tmall CEO: this year, Alibaba plans to take Singles Day global|author= C. Custer|date= October 14, 2014|access-date= December 5, 2014|work= Tech in Asia}}</ref><ref>{{cite web |url= https://www.techinasia.com/china-alibaba-singles-day-2014-spending-total/|title= New record for world's biggest shopping day as Alibaba's shoppers spend $9.3 billion in 24 hours|author= Steven Millward|date= November 12, 2014|access-date= December 5, 2014|work= Tech in Asia}}</ref>

In 2018, 9.8% of all retail sales in the United States were made online.<ref>{{cite web|url=https://fred.stlouisfed.org/series/ECOMPCTSA|work=U.S. Bureau of the Census retrieved from FRED, Federal Reserve Bank of St. Louis|date=19 November 2018 |title= E-Commerce Retail Sales as a Percent of Total Sales [ECOMPCTSA]|access-date=25 January 2019}}</ref> In 2019, that figure was 2.8% in Canada.<ref>{{cite web|url=https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=2010007201|work=Statistics Canada|date=15 January 2019 |title= Table 20-10-0072-01 Retail E-commerce sales, unadjusted (x 1,000)|access-date=25 January 2019}}</ref>
In the United Kingdom, online sales peaked at 37.8% of all retail sales in January 2021, and were at 26.3% in January 2024.<ref>{{cite web|url=https://www.ons.gov.uk/businessindustryandtrade/retailindustry/timeseries/j4mc/drsi|work=Office of National Statistics|date=18 January 2019 |title= Table Internet sales as a percentage of total retail sales (ratio) (%)|access-date=29 February 2024}}</ref>

==Customers==
Online customers must have access to the Internet and a valid [[#Payment|method of payment]] in order to complete a transaction. Generally, higher levels of education and personal income correspond to more favorable perceptions of shopping online. Increased exposure to technology also increases the probability of developing favorable attitudes towards new shopping channels.<ref name="enriquebigne">{{cite journal |last=Bigne |first=Enrique |year=2005 |title=The Impact of Internet User Shopping Patterns and Demographics on Consumer Mobile Buying Behavior |journal=Journal of Electronic Commerce Research |volume=6 |issue=3 |url=http://www.csulb.edu/journals/jecr/issues/20053/paper3.pdf |access-date=2013-03-24 |archive-date=2014-09-28 |archive-url=https://web.archive.org/web/20140928141829/http://www.csulb.edu/journals/jecr/issues/20053/paper3.pdf }}</ref>

In addition, age is also a significant factor that affects online shopping.Culture can have a big effect on how shoppers trust reviews and make important decisions. People in different countries can respond differently to online information than someone from their own country.<ref>{{Cite journal |last1=Peña-García |first1=Nathalie |last2=Gil-Saura |first2=Irene |last3=Rodríguez-Orejuela |first3=Augusto |last4=Siqueira-Junior |first4=José Ribamar |date=2020-06-01 |title=Purchase intention and purchase behavior online: A cross-cultural approach |journal=Heliyon |language=English |volume=6 |issue=6 |article-number=e04284 |doi=10.1016/j.heliyon.2020.e04284 |doi-access=free |issn=2405-8440 |pmid=32613132 |pmc=7322128 |bibcode=2020Heliy...604284P }}</ref> On top of that, after the pandemic, it seems that more people are relying on online websites for things they used to buy in person at the store.<ref>{{Cite journal |last1=Inoue |first1=Hiroyasu |last2=Todo |first2=Yasuyuki |date=2023-01-16 |title=Has Covid-19 permanently changed online purchasing behavior? |journal=EPJ Data Science |language=en |volume=12 |issue=1 |article-number=1 |doi=10.1140/epjds/s13688-022-00375-1 |issn=2193-1127 |pmc=9841963 |pmid=36684117}}</ref> People feel that privacy and security factors have an even more significant impact on attitudes toward online shopping than product factors. Shoppers of different age groups have different perceptions of the risk factors of online shopping.<ref>{{Cite journal |last1=Makhitha |first1=Khathutshelo M. |last2=Ngobeni |first2=Kate |date=2021-02-22 |title=The influence of demographic factors on perceived risks affecting attitude towards online shopping |url=http://www.sajim.co.za/index.php/SAJIM/article/view/1283 |journal=SA Journal of Information Management |language=en |volume=23 |issue=1 |doi=10.4102/sajim.v23i1.1283 |issn=1560-683X|doi-access=free }}</ref>

==Customer buying behaviour in digital environment==

The [[marketing]] around the digital environment, customer's buying behaviour may not be influenced and controlled by the brand and firm, when they make a buying decision that might concern the interactions with search engine, recommendations, online reviews and other information. In modern shopping environments, people are more likely to use their mobile phones, computers, tablets and other digital devices to gather information. When people shop online, how risky they feel when purchasing an item plays a big role. Websites that offer secure payment options and good delivery systems make shoppers feel safer and more open to making a purchase.<ref>{{Cite journal |last1=Phamthi |first1=Van Anh |last2=Nagy |first2=Ákos |last3=Ngo |first3=Trung Minh |date=July 2024 |title=The influence of perceived risk on purchase intention in e-commerce—Systematic review and research agenda |url=https://onlinelibrary.wiley.com/doi/10.1111/ijcs.13067 |journal=International Journal of Consumer Studies |language=en |volume=48 |issue=4 |article-number=e13067 |doi=10.1111/ijcs.13067 |issn=1470-6423|url-access=subscription }}</ref> Plus, the way reviews are presented with like the design of the site, layout, and pictures, will also really influence their decisions.<ref>{{Cite journal |last1=Chen |first1=Tao |last2=Samaranayake |first2=Premaratne |last3=Cen |first3=XiongYing |last4=Qi |first4=Meng |last5=Lan |first5=Yi-Chen |date=2022-06-08 |title=The Impact of Online Reviews on Consumers' Purchasing Decisions: Evidence From an Eye-Tracking Study |journal=Frontiers in Psychology |language=English |volume=13 |article-number=865702 |doi=10.3389/fpsyg.2022.865702 |pmid=35756238 |pmc=9216200 |doi-access=free |issn=1664-1078}}</ref> In an online shopping environment, interactive decision may have an influence on aid customer decision making, through online product reviews and [[user-generated content]], typically provided through software from companies like [[Bazaarvoice]] and [[Trustpilot]], or via social media.<ref>{{cite journal|last1=Kannan|first1=P. K|last2=Alice Li|first2=Hongshuang|title=Digital Marketing: A framework, review and research agenda|journal=International Journal of Research in Marketing|volume=34|issue=1|pages=22–45|doi=10.1016/j.ijresmar.2016.11.006|year=2017|s2cid=168288051}}</ref><ref>{{Citation|last1=Vafaei|first1=Seyyed Amir|title=Short communication: The effect of social media on customer behaviour and firms' activities|date=2017|url=http://real.mtak.hu/40613/|work=Management and Organization: Concepts, Tools and Applications|pages=221–228|editor-last=Illés|editor-first=Bálint Csaba|publisher=Pearson|doi=10.18515/dbem.m2017.n02.ch19|isbn=978-1-78726-048-1|access-date=2020-10-16|last2=Fekete-Farkas|first2=Mária|editor2-last=Nowicka-Skowron|editor2-first=Maria|editor3-last=Horská|editor3-first=Elena|editor4-last=Dunay|editor4-first=Anna|doi-access=free}}</ref> This content, which can include text or video-based reviews, customer photos, and feedback, is often displayed alongside products being sold on websites like [[Amazon (company)|Amazon]], [[Target Corporation|Target]], and most other digital storefronts.

Subsequently, risk and trust would also are two important factors affecting people's' behavior in digital environments. Customers consider to switch between e-channels, because they are mainly influence by the comparison with offline shopping, involving growth of security, financial and performance-risks In other words, a customer shopping online that they may receive more risk than people shopping in stores. There are three factors may influence people to do the buying decision, firstly, people cannot examine whether the product satisfy their needs and wants before they receive it. Secondly, customer may concern at after-sale services. Finally, customer may afraid that they cannot fully understand the language used in e-sales. Based on those factors customer perceive risk may as a significantly reason influence the online purchasing behaviour.<ref>{{cite journal|last1=Pappas|first1=N|title=Marketing Strategies perceived risks, and consumer trust in online behaviour|journal=Journal of Retailing and Consumer Services|date=March 2016|volume=29|pages=92–103|doi=10.1016/j.jretconser.2015.11.007|url=http://sure.sunderland.ac.uk/6488/3/Marketingstrategies2nd%20Revised%20Manuscript.pdf}}</ref>

Online retailers has place much emphasis on customer trust aspect, trust is another way driving customer's behaviour in digital environment, which can depend on customer's attitude and expectation. Indeed, the company's products design or ideas can not met customer's expectations. Customer's purchase intention based on rational expectations, and additionally impacts on emotional trust. Moreover, those expectations can be also establish on the product information and revision from others.<ref>{{cite journal|last1=Kawai|first1=F|last2=Tagg|first2=S|title=The construction of online shopping experience: A repertory grid approach|journal=Computers in Human Behavior|date=July 2017|volume=72|pages=222–232|doi=10.1016/j.chb.2017.02.055|url=http://repository.essex.ac.uk/19224/1/Rep%20Grid%20Revised%20Submission%20to%20CiHB%202.pdf}}</ref>

In several studies, perceived value, shopping style, and brand trust are the main factors that affect online consumers' decisions.<ref>{{Cite journal |last1=Stefko |first1=Robert |last2=Bacik |first2=Radovan |last3=Fedorko |first3=Richard |last4=Olearova |first4=Maria |date=2022-03-30 |title=Gender-generation characteristic in relation to the customer behavior and purchasing process in terms of mobile marketing |url=http://economic-research.pl/Journals/index.php/oc/article/view/1982 |journal=Oeconomia Copernicana |language=en |volume=13 |issue=1 |pages=181–223 |doi=10.24136/oc.2022.006 |s2cid=247944696 |issn=2353-1827 |doi-access=free |archive-date=2023-10-01 |access-date=2022-07-29 |archive-url=https://web.archive.org/web/20231001122118/http://economic-research.pl/Journals/index.php/oc/article/view/1982 }}</ref>  The perceived value means that people can compare the products and prices online, bringing them the perceived value of getting more benefits online than in an offline store.<ref>{{Cite journal |last1=Eggert |first1=Andreas |last2=Kleinaltenkamp |first2=Michael |last3=Kashyap |first3=Vishal |date=2019-05-01 |title=Mapping value in business markets: An integrative framework |url=https://www.sciencedirect.com/science/article/pii/S0019850119302081 |journal=Industrial Marketing Management |language=en |volume=79 |pages=13–20 |doi=10.1016/j.indmarman.2019.03.004 |s2cid=169692893 |issn=0019-8501|url-access=subscription }}</ref> The comfortable environment that online shopping brings to customers can make consumers get more perceived value. In the end, E-commerce behavior is still mostly influenced by families that are receptive to new technologies, and to a lesser extent by efficiency concerns.<ref>{{cite journal | last1=Maat | first1=Kees | last2=Konings | first2=Rob | title=Accessibility or Innovation? Store Shopping Trips versus Online Shopping | journal=Transportation Research Record: Journal of the Transportation Research Board | volume=2672 | issue=50 | date=2018 | issn=0361-1981 | doi=10.1177/0361198118794044 | doi-access=free | pages=1–10 }}</ref>

==Product selection==
{{Further|Buyer decision process}}
[[Consumers]] find a product of interest by visiting the website of the retailer directly or by searching among alternative vendors using a [[shopping search engine]]. Users can compare and evaluate products using [[product information]] on the website, as well on other websites such as websites about [[Standardization#Product testing and analysis|product tests]].

Once a particular product has been found and selected on the website of the seller, most online retailers use [[shopping cart software]] to allow the consumer to accumulate multiple items and to adjust quantities, like filling a physical shopping cart or basket in a conventional store. A "checkout" process follows (continuing the physical-store analogy) in which payment and delivery information is collected, if necessary. Some stores allow consumers to sign up for a permanent online account so that some or all of this information only needs to be entered once. The consumer often receives an e-mail confirmation once the transaction is complete. Less sophisticated stores may rely on consumers to phone or e-mail their orders (although full credit card numbers, expiry date, and [[Card security code|Card Security Code]],<ref>{{cite web|url=https://www.pcisecuritystandards.org/pdfs/pci_fs_data_storage.pdf|title=PCI Data Storage Do's and Don'ts|author=PCI Security Standards Council|access-date=24 March 2013}}</ref> or bank account and routing number should not be accepted by e-mail, for reasons of security).

===Impact of reviews on consumer behavior===
One of the great benefits of online shopping is the ability to read [[user review|product reviews]], written either by experts or fellow online shoppers. [[The Nielsen Company]] conducted a survey in March 2010 and polled more than 27,000 Internet users in 55 markets from the Asia-Pacific, Europe, Middle East, North America, and South America to look at questions such as "How do consumers shop online?", "What do they intend to buy?", "How do they use various online shopping web pages?", and the impact of [[social media]] and other factors that come into play when consumers are trying to decide how to spend their money on which product or service. According to the research,<ref name="Nielson">Nielsen, "Online Shopping Trends", (USA: The Nielsen Company, 2010)</ref> reviews on electronics (57%) such as DVD players, cellphones, or PlayStations, and so on, reviews on cars (45%), and reviews on software (37%) play an important role in influencing consumers who tend to make purchases online.  Furthermore, 40% of online shoppers indicate that they would not even buy electronics without consulting online reviews first. Studies using eye-tracking can show how people pay attention to certain parts of reviews and product images, which can really show how and what they decide to get.<ref>{{Cite journal |last1=Chen |first1=Tao |last2=Samaranayake |first2=Premaratne |last3=Cen |first3=XiongYing |last4=Qi |first4=Meng |last5=Lan |first5=Yi-Chen |date=2022-06-08 |title=The Impact of Online Reviews on Consumers' Purchasing Decisions: Evidence From an Eye-Tracking Study |journal=Frontiers in Psychology |language=English |volume=13 |article-number=865702 |doi=10.3389/fpsyg.2022.865702 |pmid=35756238 |pmc=9216200 |doi-access=free |issn=1664-1078}}</ref> Other research shows that reviews that talk about certain prices, quality, and delivery tend to have a big impact on how customers tend to spend their money online.<ref>{{Cite journal |last1=Wang |first1=Qiwei |last2=Zhu |first2=Xiaoya |last3=Wang |first3=Manman |last4=Zhou |first4=Fuli |last5=Cheng |first5=Shuang |date=2023-05-18 |title=A theoretical model of factors influencing online consumer purchasing behavior through electronic word of mouth data mining and analysis |journal=PLOS ONE |language=en |volume=18 |issue=5 |article-number=e0286034 |doi=10.1371/journal.pone.0286034 |doi-access=free |issn=1932-6203 |pmc=10194948 |pmid=37200302 |bibcode=2023PLoSO..1886034W }}</ref>

In addition to online reviews, peer recommendations on online shopping pages or social media websites play a key role<ref>{{Cite web |title=Word-of-Mouth Marketing: Meaning and Uses in Business |url=https://www.investopedia.com/terms/w/word-of-mouth-marketing.asp |access-date=2023-02-15 |website=Investopedia |language=en}}</ref> for online shoppers when they are researching future purchases.<ref>{{cite web |date=2010-06-29 |title=Nielsen Global Online Shopping Report |url=https://www.nielsen.com/insights/2010/global-online-shopping-report/ |access-date=2012-01-19 |publisher=nielsen.com}}</ref> 90% of all purchases made are influenced by social media.<ref>{{cite web |url=http://marketingland.com/infographic-what-do-we-do-online-16031 |title=Infographic: What We Do Online |publisher=Marketingland.com |date=2012-07-09 |access-date=2013-06-14}}</ref>

==Payment==
Online shoppers commonly use a [[credit card]] or a [[PayPal]] account in order to make payments. Having a safe and reliable payment process can be a great way to build trust. If people feel their money is secure and safe within the buying process, they will most likely purchase the product and feel comfortable about it.<ref>{{Cite journal |last1=Phamthi |first1=Van Anh |last2=Nagy |first2=Ákos |last3=Ngo |first3=Trung Minh |date=2024 |title=The influence of perceived risk on purchase intention in e-commerce—Systematic review and research agenda |url=https://onlinelibrary.wiley.com/doi/abs/10.1111/ijcs.13067 |journal=International Journal of Consumer Studies |language=en |volume=48 |issue=4 |article-number=e13067 |doi=10.1111/ijcs.13067 |issn=1470-6431|url-access=subscription }}</ref> However, some systems enable users to create accounts and pay by alternative means, such as:

* Billing to [[mobile phones]] and [[landline]]s<ref>{{cite web|url=http://www.allbusiness.com/media-telecommunications/8910400-1.html|title=Bill-2-Phone Lets Customers Add Online Purchases to Their Phone Bill|work=Allbusiness.com|date=September 1, 2007|author=Lopresti, Michael|access-date=23 November 2010}}</ref><ref>{{cite web|url=https://techcrunch.com/2010/07/19/mopay-now-allows-you-to-bill-mobile-payments-to-a-land-line-account/|work=TechCrunch.com|date=July 19, 2010|author=Geena Rao|title=Mopay Now Allows You To Bill Mobile Payments To A Landline Account|access-date=23 November 2010}}</ref>
* [[Bitcoin]] or other [[cryptocurrencies]]
* [[Cash on delivery]] (C.O.D.)
* [[Cheque]]/ Check
* [[Debit card]]
* [[Direct debit]] in some countries
* [[Electronic money]] of various types
* [[Gift card]]s
* [[Invoice]], especially popular in some markets/countries, such as Switzerland
* [[Money order|Postal money order]]
* [[Wire transfer]]/delivery on payment

Some online shops will not accept international credit cards. Some require both the purchaser's billing and shipping address to be in the same country as the online shop's base of operation. Other online shops allow customers from any country to send gifts anywhere. The financial part of a transaction may be processed in real time (e.g. letting the consumer know their credit card was declined before they log off), or may be done later as part of the fulfillment process.

==Product delivery==
[[File:Foodora messenger.jpg|thumb|[[Foodora]]'s [[Bicycle messenger|home delivery by bicycle]] in [[Tampere]], [[Finland]]]]
Once a payment has been accepted, the goods or services can be delivered in the following ways.  For physical items:
* [[Package delivery]]: The product is shipped to a customer-designated address.  Retail [[package delivery]] is typically done by the public [[postal system]] or a retail [[courier]] such as [[FedEx]], [[United Parcel Service|UPS]], [[DHL]], or [[TNT Express|TNT]].
* [[Drop shipping]]: The order is passed to the manufacturer or third-party distributor, who then ships the item directly to the consumer, bypassing the retailer's physical location to save time, money, and space.
* In-store pick-up: The customer selects a local store using a [[locator software]] and picks up the delivered product at the selected location. This is the method often used in the [[bricks and clicks]] business model.

For digital items or tickets:
* [[Download]]ing/[[Digital distribution]]:<ref name=newell2007>{{cite web|publisher=[[Rock, Paper, Shotgun]] |url=http://www.rockpapershotgun.com/2007/11/21/rps-exclusive-gabe-newell-interview/|title=RPS Exclusive: Gabe Newell Interview |date=2007-11-22 |access-date=2013-06-28 |first=John |last=Walker |quote=''The worst days [for game development] were the cartridge days for the NES. It was a huge risk&nbsp;– you had all this money tied up in silicon in a warehouse somewhere, and so you'd be conservative in the decisions you felt you could make, very conservative in the IPs you signed, your art direction would not change, and so on. Now it's the opposite extreme: we can put something up on Steam, deliver it to people all around the world, make changes. We can take more interesting risks.[...] Retail doesn't know how to deal with those games. On Steam [a digital distributor] there's no shelf-space restriction. It's great because they're a bunch of old, orphaned games.''}}</ref> The method often used for digital media products such as software, music, movies, or images.
* [[Printing]] out, provision of a code for, or [[e-mail]]ing of such items as [[Ticket (admission)|admission ticket]]s and [[scrip]] (e.g., gift certificates and coupons). The tickets, codes, or coupons may be redeemed at the appropriate physical or online premises and their content reviewed to verify their eligibility (e.g., assurances that the right of admission or use is redeemed at the correct time and place, for the correct dollar amount, and for the correct number of uses).
* [[Will call]], COBO (in Care Of Box Office), or "at the door" pickup: The patron picks up pre-purchased tickets for an event, such as a play, sporting event, or concert, either just before the event or in advance. With the onset of the Internet and e-commerce sites, which allow customers to buy tickets online, the popularity of this service has increased.

==Shopping cart systems==
{{See|Comparison of shopping cart software}}
Simple shopping cart systems allow the off-line administration of products and categories. The shop is then generated as HTML files and graphics that can be uploaded to a webspace. The systems do not use an online database.<ref>{{cite web | url= http://www.practicalecommerce.com/articles/100112-cart_intro| title= How Does Shopping Cart Software Works – Product Databases | date=15 Jan 2004 | access-date=7 Feb 2017}}</ref> A high-end solution can be bought or rented as a stand-alone program or as an addition to an [[enterprise resource planning]] program. It is usually installed on the company's web server and may integrate into the existing [[supply chain]] so that ordering, payment, delivery, accounting and warehousing can be automated to a large extent. Other solutions allow the user to register and create an online shop on a [[web portal|portal]] that hosts multiple shops simultaneously from one back office. Examples are [[BigCommerce]], [[Shopify]] and [[FlickRocket]]. [[Open-source model|Open source]] shopping cart packages include advanced platforms such as Interchange, and off-the-shelf solutions such as [[Magento]], [[osCommerce]], [[WooCommerce]], [[PrestaShop]], and [[Zen Cart]].<!-- Please do not add more here without discussing it on the talk page. --> Commercial systems can also be tailored so the shop does not have to be created from scratch. By using an existing framework, software modules for various functionalities required by a web shop can be adapted and combined.<ref>WooCommerce is open-source and completely customizable eCommerce [https://woocommerce.com/woocommerce-features/ ''eCommerce solutions'']</ref>

==Design==
Customers are attracted to online shopping not only because of high levels of convenience, but also because of broader selections, competitive pricing, and greater access to information.<ref>{{cite journal | last1 = Jarvenpaa | first1 = S. L. | last2 = Todd | first2 = P. A. | year = 1997 | title = Consumer reactions to electronic shopping on the world wide web | journal = International Journal of Electronic Commerce | volume = 1 | issue = 2| pages = 59–88 | doi=10.1080/10864415.1996.11518283}}</ref><ref>{{cite journal | last1 = Peterson | first1 = R. A. | last2 = Balasubramanian | first2 = S. | last3 = Bronnenberg | first3 = B. J. | year = 1997 | title = Exploring the implications of the Internet for consumer marketing | journal = Journal of the Academy of Marketing Science | volume = 25 | issue = 4| pages = 329–346 | doi=10.1177/0092070397254005| s2cid = 167790427 }}</ref> Business organizations seek to offer online shopping not only because it is of much lower cost compared to bricks and mortar stores, but also because it offers access to a worldwide market, increases customer value, and builds sustainable capabilities.<ref>{{Cite web |title=Advantages of E-Commerce |url=https://www.thebalancemoney.com/advantages-of-ecommerce-1141610 |access-date=2023-02-15 |website=The Balance |language=en}}</ref><ref name="stephenking">{{Cite journal |last1=King |first1=Stephen F. |last2=Liou |first2=Jung-Shiuan |date=2004-12-01 |title=A framework for internet channel evaluation |url=https://www.sciencedirect.com/science/article/pii/S0268401204000933 |journal=International Journal of Information Management |language=en |volume=24 |issue=6 |pages=473–488 |doi=10.1016/j.ijinfomgt.2004.08.006 |issn=0268-4012|url-access=subscription }}</ref>

===Information load===
Designers of online shops are concerned with the effects of information load. Information load is a product of the spatial and temporal arrangements of stimuli in the web store.<ref>Mehrabian, A., & Russel J.A. (1974) An Approach to Environmental Psychology. Cambridge, MA: The MIT Press.</ref> Compared with conventional retail shopping, the information environment of virtual shopping is enhanced by providing additional product information such as comparative products and services, as well as various alternatives and attributes of each alternative, etc.<ref name="huang">{{cite journal | last1 = Huang | first1 = M | year = 2000 | title = Information load: its relationship to online exploratory and shopping behavior | journal = International Journal of Information Management | volume = 20 | issue = 5| pages = 337–347 | doi=10.1016/s0268-4012(00)00027-x| url = http://ntur.lib.ntu.edu.tw/bitstream/246246/85005/1/11.pdf }}</ref> Two major dimensions of information load are complexity and novelty.<ref>Campbell, D.J. (1988) Task complexity: A review and analysis. Academy of Management Review, 13(1), 40–52.</ref> Complexity refers to the number of different elements or features of a site, often the result of increased information diversity. Novelty involves the unexpected, suppressed, new, or unfamiliar aspects of the site. The novelty dimension may keep consumers exploring a shopping site, whereas the complexity dimension may induce [[impulse purchase]]s.<ref name="huang" />

===Consumer needs and expectations===
Internet consumers are self-conscious and emphasize personalized consumption, which makes the demand for online consumption different. Online consumers have different needs depending on their time and environment. Even different online consumers have different needs at the same level of demand due to the difference in income level and other factors. Compared with the centralized nature of traditional markets, online consumption is more decentralized. In the online consumer market, consumers have a short decision time, a large variability of consumer demand, a large number of purchases, but a relatively small amount of each purchase, a considerable mobility of purchases, a strong substitutability of goods, and a large elasticity of demand.<ref>{{Cite journal |last1=Perea y Monsuwé |first1=Toñita |last2=Dellaert |first2=Benedict G.C. |last3=de Ruyter |first3=Ko |date=2004-01-01 |title=What drives consumers to shop online? A literature review |journal=International Journal of Service Industry Management |volume=15 |issue=1 |pages=102–121 |doi=10.1108/09564230410523358 |issn=0956-4233 |url=https://cris.maastrichtuniversity.nl/en/publications/a87e215e-873b-4b15-b8a2-fcd0bee88dc4 }}</ref> According to the output of a research report by [[Western Michigan University]] published in 2005, an e-commerce website does not have to be good looking with listing on a lot of search engines. It must build relationships with customers to make money. The report also suggests that a website must leave a positive impression on the customers, giving them a reason to come back.<ref name="louisfalk">{{cite journal | last1 = Falk | first1 = Louis K. | last2 = Sockel | first2 = Hy | last3 = Chen | first3 = Kuanchin | year = 2005 | title = E-Commerce and Consumer's Expectations: What Makes a Website Work | journal = Journal of Website Promotion | volume = 1 | issue = 1| pages = 65–75 | doi=10.1300/j238v01n01_06}}</ref> How people tend to shop and how much they trust a company or brand are all very important factors that can either make or break whether a person buys online.<ref>{{Cite journal |last1=Phamthi |first1=Van Anh |last2=Nagy |first2=Ákos |last3=Ngo |first3=Trung Minh |date=2024 |title=The influence of perceived risk on purchase intention in e-commerce—Systematic review and research agenda |url=https://onlinelibrary.wiley.com/doi/abs/10.1111/ijcs.13067 |journal=International Journal of Consumer Studies |language=en |volume=48 |issue=4 |article-number=e13067 |doi=10.1111/ijcs.13067 |issn=1470-6431|url-access=subscription }}</ref> If sites can give good product info, good visuals, and good, reliable reviews, they can make their online shoppers feel safer and overall persuade them to purchase something.<ref>{{Cite journal |last1=Chen |first1=Tao |last2=Samaranayake |first2=Premaratne |last3=Cen |first3=XiongYing |last4=Qi |first4=Meng |last5=Lan |first5=Yi-Chen |date=2022-06-08 |title=The Impact of Online Reviews on Consumers' Purchasing Decisions: Evidence From an Eye-Tracking Study |journal=Frontiers in Psychology |language=English |volume=13 |article-number=865702 |doi=10.3389/fpsyg.2022.865702 |pmid=35756238 |pmc=9216200 |doi-access=free |issn=1664-1078}}</ref> However, resent research<ref>{{cite journal|last1=Parker|first1=Christopher J.|last2=Wang|first2=Huchen|title=Examining hedonic and utilitarian motivations for m-commerce fashion retail app engagement|journal=Journal of Fashion Marketing and Management|volume=20|issue=4|pages=487–506|doi=10.1108/JFMM-02-2016-0015|year=2016|url=https://www.research.manchester.ac.uk/portal/en/publications/examining-hedonic-and-utilitarian-motivations-for-mcommerce-fashion-retail-app-engagement(98defb8e-c227-43b1-824b-9f8b55b61cca).html}}</ref> has proven that sites with higher focus on efficiency, convenience, and personalised services increased the customers motivation to make purchases.

[[Dyn (company)|Dyn]], an Internet performance management company conducted a survey on more than 1400 consumers across 11 countries in [[North America]], [[Europe]], [[Middle-East]] and [[Asia]] and the results of the survey are as follows:
* Online retailers must improve the website speed
* Online retailers must ease consumers fear around security

These concerns majorly affect the decisions of almost two thirds of the consumers.<ref>{{cite web | url=http://ecommercenews.eu/consumers-online-shopping-expectations/ | title=Consumers and their online shopping expectations – Ecommerce News | date=20 February 2015 | access-date=29 August 2016}}</ref>

===User interface===
[[File:Automated online assistant.png|thumb|200px|An [[automated online assistant]], with potential to enhance user interface on shopping sites]]
The most important factors determining whether customers return to a website are ease of use and the presence of user-friendly features.<ref name="sherry" /> [[Usability]] testing is important for finding problems and improvements in a web site. Methods for evaluating usability include [[heuristic evaluation]], cognitive walkthrough, and [[user testing]]. Each technique has its own characteristics and emphasizes different aspects of the user experience.<ref name="sherry">Sherry Y. Chen en Robert D. Macredie, "The assessment of usability of electronic shopping: A heuristic evaluation", International Journal of Information Management 25 (2005), 516–532</ref>

==Market share==
The popularity of online shopping continues to erode sales of conventional retailers. For example, [[Best Buy]], the largest retailer of electronics in the U.S. in August 2014 reported its tenth consecutive quarterly dip in sales, citing an increasing shift by consumers to online shopping.<ref name="BestBuyDip">{{cite news|title=Best Buy looks to new products to push sales|url=http://www.minneapolisnews.net/index.php/sid/225119543|date=26 August 2014|access-date=28 August 2014|publisher=Minneapolis News.Net|archive-date=7 December 2024|archive-url=https://web.archive.org/web/20241207010557/https://www.minneapolisnews.net/index.php/sid/225119543}}</ref> [[Amazon.com]] has the largest market share in the United States.  As of May 2018, a survey found two-thirds of Americans had bought something from Amazon (92% of those who had bought anything online), with 40% of online shoppers buying something from Amazon at least once a month. The survey found shopping began at amazon.com 44% of the time, compared to a general search engine at 33%.  It estimated 75 million Americans subscribe to [[Amazon Prime]] and 35 million more use someone else's account.<ref>{{cite web |last1=Selyukh |first1=Alina |title=What Americans Told Us About Online Shopping Says A Lot About Amazon |website=[[NPR]] |date=6 June 2018 |archive-url=https://web.archive.org/web/20230603174045/https://www.npr.org/2018/06/06/615137239/what-americans-told-us-about-online-shopping-says-a-lot-about-amazon |archive-date=2023-06-03 |url-status=live |url=https://www.npr.org/2018/06/06/615137239/what-americans-told-us-about-online-shopping-says-a-lot-about-amazon}}</ref>

There were 242 million people shopping online in China in 2012.<ref>{{Cite web |last=Shu |first=Catherine |date=2013-04-17 |title=China's E-Commerce Market Grew To $190B In 2012, Driven By Mobile Users and Social Media, Says CNNIC |url=https://techcrunch.com/2013/04/16/chinas-e-commerce-market-grew-to-190b-in-2012-driven-by-mobile-users-and-social-media-says-cnnic/ |access-date=2023-02-15 |website=TechCrunch |language=en-US}}</ref> For developing countries and low-income households in developed countries, adoption of e-commerce in place of or in addition to conventional methods is limited by a lack of affordable Internet access.

==Advantages==

===Convenience===
Online stores are usually available 24 hours a day, and many consumers in Western countries have Internet access both at work and at home. Other establishments such as Internet cafes, community centers and schools provide internet access as well. In contrast, visiting a conventional retail store requires travel or commuting and costs such as gas, parking, or bus tickets, and must usually take place during business hours. Delivery was always a problem which affected the convenience of online shopping. Additionally, the online shopping industry has not only involved the concept of providing convenience for customers but also improved perceptions of social inclusion.<ref>{{Cite journal |last1=Fan |first1=Xiaojun |last2=Ning |first2=Nanxi |last3=Deng |first3=Nianqi |date=2020-03-19 |title=The impact of the quality of intelligent experience on smart retail engagement |url=https://www.emerald.com/insight/content/doi/10.1108/MIP-09-2019-0439/full/html |journal=Marketing Intelligence & Planning |language=en |volume=38 |issue=7 |pages=877–891 |doi=10.1108/MIP-09-2019-0439 |s2cid=216507124 |issn=0263-4503|url-access=subscription }}</ref> However to overcome this many retailers including online retailers in Taiwan brought in a store pick up service. This now meant that customers could purchase goods online and pick them up at a nearby convenience store, making online shopping more advantageous to customers.<ref>{{Cite journal|last=Hsiao|first=Ming-Hsiung|title=Shopping mode choice: Physical store shopping versus e-shopping|journal=Transportation Research Part E: Logistics and Transportation Review|volume=45|issue=1|pages=86–95|doi=10.1016/j.tre.2008.06.002|year=2009 |bibcode=2009TRPE...45...86H }}</ref>  In the event of a problem with the item (e.g., the product was not what the consumer ordered or the product was not satisfactory), consumers are concerned with the ease of returning an item in exchange for the correct product or a refund. Consumers may need to contact the retailer, visit the post office and pay return shipping, and then wait for a replacement or refund. Some online companies have more generous return policies to compensate for the traditional advantage of physical stores. For example, the online shoe retailer [[Zappos.com]] includes labels for free return shipping, and does not charge a restocking fee, even for returns which are not the result of merchant error.  (Note: In the United Kingdom, online shops are prohibited from charging a restocking fee if the consumer cancels their order in accordance with the Consumer Protection (Distance Selling) Act 2000).<ref>{{cite web|title=A guide for businesses on distance selling|url=http://www.oft.gov.uk/shared_oft/business_leaflets/general/oft698.pdf|publisher=Office of fair trading|access-date=19 March 2014|year=2004|archive-url=https://web.archive.org/web/20130810213307/http://www.oft.gov.uk/shared_oft/business_leaflets/general/oft698.pdf|archive-date=10 August 2013}}</ref> A 2018 survey in the United States found 26% of online shoppers said they never return items, and another 65% said they rarely do so.<ref>[https://www.npr.org/2018/06/08/617858833/online-shoppers-say-they-rarely-return-purchases-why Online Shoppers Say They Rarely Return Purchases. Why?]</ref> Merchants may benefit from online shopping due to low sales inventory pressure, low operating costs, and the scale of operation is not limited by the site.

===Delivery===
Especially in cases of large or heavy products, delivery can be not only more convenient but also not require having or using a car. Not using or depending on personal vehicles, which [[Effects of the car on societies#Public or external costs|can have substantial impact on the environment]], to travel to local stores can make online shopping more sustainable than buying in local stores if such are used otherwise<ref name="sciencenews">{{cite news |title=Ordering from a local store can curb online shopping's CO₂ emissions |url=https://www.sciencenews.org/article/ordering-local-store-curbs-online-shopping-carbon-dioxide-emissions |access-date=4 November 2022 |date=26 February 2020}}</ref> (especially if items are bundled<ref name="sciencenews"/> and delivery vehicles are electric and use optimized routes). Moreover, the pace of urbanization, local delivery systems, and internet connectivity which facilitate the delivery process are the major determinants of e-commerce adoption,

===Information and reviews===
Online shopping is usually more informationally rich than shopping at physical stores traveled to and usually has higher comparability and customizability.<ref name="978-0-262-03492-0">{{cite book |last1=Sarokin |first1=David |last2=Schulkin |first2=Jay |title=Missed Information: Better Information for Building a Wealthier, More Sustainable Future |date=26 August 2016 |publisher=MIT Press |isbn=978-0-262-03492-0 |page=100 |url=https://books.google.com/books?id=8toPDQAAQBAJ&pg=PA100 |language=en}}</ref>

Online stores must describe products for sale with text, photos, and multimedia files, and sometimes have features such as [[Q&A software|question and answers]] or filters, whereas in a physical retail store, the actual product and the manufacturer's packaging will be available for direct inspection (which might involve a test drive, fitting, or other experimentation). Some online stores provide or link to supplemental product information, such as instructions, safety procedures, demonstrations, or manufacturer specifications. Research shows that when consumers are looking at reviews, they pay attention to both the text and the picture of the product. Positive reviews and well-organized information can make people feel comfortable in themselves as a buyer and comfortable in the website or company they are shopping with.<ref>{{Cite journal |last1=Wang |first1=Qiwei |last2=Zhu |first2=Xiaoya |last3=Wang |first3=Manman |last4=Zhou |first4=Fuli |last5=Cheng |first5=Shuang |date=2023-05-18 |title=A theoretical model of factors influencing online consumer purchasing behavior through electronic word of mouth data mining and analysis |journal=PLOS ONE |language=en |volume=18 |issue=5 |article-number=e0286034 |doi=10.1371/journal.pone.0286034 |doi-access=free |issn=1932-6203 |pmc=10194948 |pmid=37200302 |bibcode=2023PLoSO..1886034W }}</ref> Some provide background information, advice, or how-to guides designed to help consumers decide which product to buy. Some stores even allow customers to comment or rate their items. There are also dedicated [[review site]]s that host user reviews for different products. Reviews and even some blogs give customers the option of shopping for cheaper purchases from all over the world without having to depend on local retailers. In a conventional retail store, clerks are generally available to answer questions. Some online stores have real-time chat features, but most rely on e-mails or phone calls to handle customer questions. Even if an online store is open 24 hours a day, seven days a week, the customer service team may only be available during regular business hours. It also implies that geographical factors, rather than socioeconomic issues, must be addressed in order to improve online shopping acceptance.<ref>{{cite journal | last=Song | first=Zhouying | title=The geography of online shopping in China and its key drivers | journal=Environment and Planning B: Urban Analytics and City Science | volume=49 | issue=1 | date=2022 | issn=2399-8083 | doi=10.1177/23998083211002189 | pages=259–274 | bibcode=2022EnPlB..49..259S | url=https://journals.sagepub.com/doi/10.1177/23998083211002189 | access-date=July 28, 2025| url-access=subscription }}</ref>

===Price and selection===
One advantage of shopping online is being able to quickly seek out deals for items or services provided by many different vendors (though some [[Local search (Internet)|local search]] engines do exist to help consumers locate products for sale in nearby stores). Search engines, online [[price comparison service]]s and [[discovery shopping]] engines can be used to look up sellers of a particular product or service. Shipping costs (if applicable) reduce the price advantage of online merchandise, though depending on the jurisdiction, a lack of [[sales tax]] may compensate for this. Shipping a small number of items, especially from another country, is much more expensive than making the larger shipments [[Brick and mortar|bricks-and-mortar]] retailers order. Some retailers (especially those selling small, high-value items like electronics) offer free shipping on sufficiently large orders. Another major advantage for retailers is the ability to rapidly switch suppliers and vendors without disrupting users' shopping experience.

==Disadvantages==

===Fraud and security concerns===
Given the lack of ability to inspect merchandise before purchase, consumers are at higher risk of fraud than face-to-face transactions. When ordering merchandise online, the item may not work properly, it may have defects, or it might not be the same item pictured in the online photo. Merchants also risk fraudulent purchases if customers are using stolen credit cards or fraudulent repudiation of the online purchase. However, merchants face less risk from physical theft by using a warehouse instead of a retail storefront. [[Secure Sockets Layer]] (SSL) [[encryption]] has generally solved the problem of credit card numbers being intercepted in transit between the consumer and the merchant. However, one must still trust the merchant (and employees) not to use the credit card information subsequently for their own purchases, and not to pass the information to others. Also, hackers might break into a merchant's web site and steal names, addresses and credit card numbers, although the [[Payment Card Industry Data Security Standard]] is intended to minimize the impact of such breaches. [[Identity theft]] is still a concern for consumers. A number of high-profile break-ins in the 2000s has prompted some U.S. states to require disclosure to consumers when this happens. Computer security has thus become a major concern for merchants and e-commerce service providers, who deploy countermeasures such as firewalls and anti-virus software to protect their networks. [[Phishing]] is another danger, where consumers are fooled into thinking they are dealing with a reputable retailer, when they have actually been manipulated into feeding private information to a system operated by a malicious party. Denial of service attacks are a minor risk for merchants, as are server and network outages.

Quality seals can be placed on the Shop web page if it has undergone an independent assessment and meets all requirements of the company issuing the seal. The purpose of these seals is to increase the confidence of online shoppers. However, the existence of many different seals, or seals unfamiliar to consumers, may foil this effort to a certain extent.

A number of resources offer advice on how consumers can protect themselves when using online retailer services. These include:
* Sticking with well-known stores, or attempting to find independent consumer reviews of their experiences; also ensuring that there is comprehensive contact information on the website before using the service, and noting if the retailer has enrolled in industry oversight programs such as a trust mark or a trust seal.
* Before buying from a new company, evaluating the website by considering issues such as: the professionalism and user-friendliness of the site; whether or not the company lists a telephone number and/or street address along with e-contact information; whether a fair and reasonable refund and return policy is clearly stated; and whether there are hidden price inflators, such as excessive shipping and handling charges.
* Ensuring that the retailer has an acceptable [[privacy policy]] posted. For example, note if the retailer does not explicitly state that it will not share private information with others without consent.
* Ensuring that the vendor address is protected with SSL (see above) when entering credit card information. If it does the address on the credit card information entry screen will start with "HTTPS".
* Using [[strong password]]s which do not contain personal information such as the user's name or birthdate. Another option is a "pass phrase," which might be something along the lines: "I shop 4 good a buy!!" These are difficult to hack, since they do not consist of words found in a dictionary, and provides a variety of upper, lower, and special characters. These passwords can be site specific and may be easy to remember.

Although the benefits of online shopping are considerable, when the process goes poorly it can create a thorny situation. A few problems that shoppers potentially face include identity theft, faulty products, and the accumulation of [[spyware]]. If users are required to put in their credit card information and billing/shipping address and the website is not secure, customer information can be accessible to anyone who knows how to obtain it. Most large online corporations are inventing new ways to make [[Internet fraud|fraud]] more difficult. However, criminals are constantly responding to these developments with new ways to manipulate the system. Even though online retailers are making efforts to protect consumer information, it is a constant fight to maintain the lead. It is advisable to be aware of the most current technology and scams to protect consumer identity and finances. Product delivery is also a main concern of online shopping. Most companies offer shipping insurance in case the product is lost or damaged. Some shipping companies will offer refunds or compensation for the damage, but this is up to their discretion.

===Fencing===
[[Fence (criminal)|Fencing]] is another growing societal problem associated with online platforms.<ref>{{ cite news|url=https://seekingalpha.com/article/4631569-amazon-has-a-fencing-problem|title=Amazon has a fencing problem |last=Bowler |first=Dane |date=28 August 2023 |work=Seeking Alpha}}</ref> Stolen merchandise from brick and mortal retailers and cargo are easily resold to the public through third party marketplaces due to lack of accountability and regulation by online operators.<ref>{{cite news |url=https://www.cnbc.com/2022/06/17/the-fight-against-stolen-products-on-amazon-and-facebook-marketplace.html |title=How TECH Stolen goods sold on Amazon, eBay and Facebook are causing havoc for major retailers |date=17 June 2022 |first=Katie |last=Tarasov |work=CNBC}} </ref> In the United States alone, businesses are facing the brunt of organized retail crime with the value of stolen goods amounting to $68.8 billion in 2021 (equivalent to 1.47% of all sales or $214 per capita nationwide). These goods are typically passed off as legitimate, and resold online to unsuspecting buyers.<ref>{{cite web |url=https://www.uschamber.com/economy/retail-crime-data-center |title=Retail Crime Data Center |website=US Chamber of Commerce|date=15 March 2023 }}</ref>

===Lack of full cost disclosure===
The lack of full cost disclosure may also be problematic. While it may be easy to compare the base price of an item online, it may not be easy to see the total cost up front. Additional fees such as shipping are often not visible until the final step in the checkout process. The problem is especially evident with cross-border purchases, where the cost indicated at the final checkout screen may not include additional fees that must be paid upon delivery such as [[duties]] and [[brokerage]]. Some services such as the Canadian-based Wishabi attempts to include estimates of these additional cost,<ref name=ecommercetimes>{{cite web |last=Denise J.|first=Deveau|title=Keeping It Real for Cross-Border Online Shoppers|url=http://www.ecommercetimes.com/story/69105.html |work=ecommercetimes.com |publisher=ECT News Network |access-date=19 March 2014|date=14 January 2010}}</ref> but nevertheless, the lack of general full cost disclosure remains a concern.

===Privacy===
Privacy of personal information is a significant issue for some consumers. Many consumers wish to avoid spam and telemarketing which could result from supplying contact information to an online merchant. In response, many merchants promise to not use consumer information for these purposes, Many websites keep track of consumer shopping habits in order to suggest items and other websites to view. Brick-and-mortar stores also collect consumer information. Some ask for a shopper's address and phone number at checkout, though consumers may refuse to provide it. Many larger stores use the address information encoded on consumers' credit cards (often without their knowledge) to add them to a catalog mailing list. This information is obviously not accessible to the merchant when paying in cash or through a bank (money transfer, in which case there is also proof of payment).

==Aggregation==
High-volume websites, such as [[Yahoo!]], Amazon.com and eBay offer hosting services for online stores to all size retailers. These stores are presented within an integrated navigation framework, sometimes known as '''virtual shopping malls''' or [[online marketplace]]s.

==See also==
{{Portal|Internet|Drink}}<!-- Please respect alphabetical order -->
{{div col}}
*[[Bricks and clicks business model]]
*[[Dark store]]
*[[Digital distribution]]
*[[Electronic business]]
*[[E-commerce]]
*[[Online auction business model]]
*[[Online music store]]
*[[Online pharmacy]]
*[[Online shopping malls]]
*[[Online shopping rewards]]
*[[Package delivery]]
*[[Personal shopper]]
*[[Product tracing]] systems: allow to see source factory of a product
*[[Retail therapy]]
*[[Retail#Types of retail outlets|Types of retail outlets]]{{div col end}}

==References==
{{reflist}}

==External links==
*{{Commons category-inline|Online shopping}}

{{Retail}}
{{Industries}}
{{Authority control}}

{{DEFAULTSORT:Online Shopping}}
[[Category:Online retailers| ]]
[[Category:Consumer behaviour]]
[[Category:Merchandising]]
[[Category:Website monetization]]