Shopping from Home

Shopping from home via the Internet is a huge economic indicator for the American retail industry. US online retail sales will exceed $172.4 billion in 2005. Revenues from online sales will keep growing. Forrester Research predicts that US online retail sales will grow at a steady 14% over the next five years, to $328.6 billion in 2010. And, there will be more buyers each year as well. Nearly two million new US households will shop online each of the next five years, creating a total of 55 million US online shopping households in 2010. With an industry this big, everyone needs to know the basic rules of shopping from home.

Knowing Who the Seller Is

The key to having a happy online experience is dealing with a retailer you can trust. If you don’t know the seller, there are easy ways to find out about them. Check the company’s website (do a search under the name of the company to find the URL), especially the section “About Us.” Some online sellers participate in programs such as BBBOnLine that help resolve problems and are identified as such by a logo or endorsement seal on the website. This would be another indication of the seller’s reliability.

Alternatively, you can check online sellers by looking at other consumers’ comments. Visit www.bizrate.com where consumers rate online stores. The major Internet auction sites post ratings of sellers based on comments by buyers. Read the comments carefully; sellers have been known to “plant” overly positive reports and/or to remove excessively negative comments.

Knowing Where the Seller Is

Not all English-language websites are North American companies. Look carefully to see from where your product is being shipped. Never order from a company that lists only a post office box. If there’s a problem later on, lack of a full street address may pose difficulties.

Knowing What You Are Buying

You can’t assume that all products sold online are new and unused. Some online retailers sell refurbished or discontinued items. Read the product descriptions carefully. If there is not a complete description of the product, buy from someone else.

Knowing How to Keep Your Information Safe

Use a secure website to help protect your credit card from misuse. Look for a privacy policy statement or seal that indicates the site abides by privacy standards. Also look for signs that you are using a secure web page. (A secure site encrypts or scrambles personal information so it cannot be easily intercepted by non-authorized users.) For example, a trustworthy retailer includes a screen notice that says you are on a secure site, or a closed lock or unbroken key at the bottom of your screen. Sometimes the first letters of the Internet address you are visiting changes from “http” to “https” as well for security purposes.

Never send your credit card number by email. The seller’s software should be able to handle your credit card information without you having to leave the seller’s website. Emails are not a secure form of transmitting sensitive information of any kind. Many retailers ask you if you want to keep that credit card information online for future purposes. While this is probably safe enough on a secure server, it’s not a wise idea to leave any of your personal information online. Also, never use your credit card information for any reason (such as proving your identity) other than payment of the goods or services you are actually buying.

Knowing How to Keep Track of Your Purchases

Always keep a record of what you ordered, when you ordered it, how much you paid and how you paid. Also save any information the seller gives you such as product description, delivery date, and order confirmation numbers. Nearly all retailers provide online receipts that you can print out or save in your computer system. In addition, email confirmations are sent to the email address you provide. Download those immediately upon receipt and remove them from your email server. Either print out the email message or save it in your computer.

Knowing How to Deal with Individuals Online

Many individuals or private sellers sell items on the Internet through auctions. If you visit an auction site, check how the auction works. Some sites offer step-by-step instructions that will guide you through the bidding process. Find out if the site provides free insurance or guarantees for items that are not delivered or are not what the private seller claimed. If the seller cannot accept payment by credit card, use an escrow service where your money is held by a third-party until you get your purchase and approve release of your payment to the seller. Be wary, however, of sellers who insist you use a specific escrow service, especially if you are not familiar with that particular service. Also be wary of sellers who seemingly want you to wire money through well-known and respected services; even though the service is legitimate, once you wire the money, it’s gone.

Source: Omni Financial®