Online shopping
Online shopping is a form of electronic commerce which allows consumers to directly buy goods or services from a seller over the Internet using a web browser or a mobile app.
[2] The computerized ticket reservation system developed for American Airlines called Semi-Automatic Business Research Environment (SABRE) was one of its applications.
[2] At some point between 1971 and 1972, students at Stanford and MIT used the internet precursor ARPANET to make a deal to exchange marijuana, but the interaction does not qualify as e-commerce because no money was transferred online.
[4] 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,[5] marking a pivotal moment in 1994 with the first online sales of Sting's album, Ten Summoner's Tales.
[6] This milestone event set the stage for the diversification of online retail, with early adopters such as wine, chocolates, and flowers paving the way.
[7] Generic items that didn't necessitate physical interaction gained traction, propelling the online shopping trend forward.
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.
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.'
[12] These systems which also provided voice response and handprint processing pre-date the Internet and the World Wide Web, the IBM PC, and Microsoft MS-DOS, and were installed mainly in the UK by large corporations.
[23][24] 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, Target, and most other digital storefronts.
However, some systems enable users to create accounts and pay by alternative means, such as: Some online shops will not accept international credit cards.
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.
[38] 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.
[46] 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.
[47] However, resent research[48] has proven that sites with higher focus on efficiency, convenience, and personalised services increased the customers motivation to make purchases.
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.
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.
Additionally, the online shopping industry has not only involved the concept of providing convenience for customers but also improved perceptions of social inclusion.
[2] 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 engines do exist to help consumers locate products for sale in nearby stores).
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.
Secure Sockets Layer (SSL) encryption has generally solved the problem of credit card numbers being intercepted in transit between the consumer and the merchant.
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.
[60] 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.
[61] 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).
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.
Many larger stores use the address information encoded on consumers' credit cards (often without their knowledge) to add them to a catalog mailing list.
Many successful purely virtual companies deal with digital products, (including information storage, retrieval, and modification), music, movies, office supplies, education, communication, software, photography, and financial transactions.
Products such as spare parts, both for consumer items like washing machines and for industrial equipment like centrifugal pumps, also seem good candidates for selling online.
