Online Shopping

1
Online Shopping

• Basics

2
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

3
Drawbacks

• Shipping
• 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
• Cant check its condition, its size, feel in your
  hand, etc.

4
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?

5
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

6
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