December 25, 2006: Online trade is fast picking up. Is normally happens, when ever a new trade emerges, fraudsters emerge at a faster speed. Traditionally people especially for consumer goods have tendency to have look and feel of the goods before buying, so it is yet to reach at its full potential. With the growing costs of travel , time constraints and the regulatory mechanisms to check online frauds, the online trade is bound to grow and as per some estimates, it would grow by at least ten times in next five years.
For beginners some basic questions about this aspect and their replies are given below:
What is Online Shopping?
When you buy an product or service over the internet, instead of going over to traditional brick and mortar store, it is called online shopping. Worldwide, more and more persons are turning over to online shopping for the ease and cost benefits is brings along. This year 2006, only the Christmas shopping alone worldwide is expected to exceed US $ 23 billion.
What can be bought online?
Almost any thing from Groceries to Greeting Cards, Cellphones, ring tones, New and Used Cars, or even tenchincal and professional services can be bought online. Pail and Air tickets are much cheaper in many parts of the world if bought online. Broking, Job search, Web designing, Content development or online trading of shares are most traded services.
How Big is Online Shopping ?
While because of security concerns, preference to have touch and feel before buy, lack of legal remedies especially when buying across the borders, internet banking frauds is hampering the growth of this trade to its full potential, it has registered growth of more than 100 times in past 7 years. This year 2006, it is expected to cross 7% of the organized retail market worldwide, which is not a small figure by any standards.
How did Online Shopping Start?
Though Online shopping start with the penetration of the net, it came into recognition in around year 1991. During internet boom of year 1999-2000, it is given a further boost by Amazon.com because of the wide options, competitive deals and the comfort it offered. Following its success, many physical stores also went online. Such was its success that many known names such as MSN and Yahoo also jumped in fray and changed the way the industry functions.
What are advantages of Shopping Online?
It is faster, convenient and in most cases substantially cheaper because of saving of middle men margins. For example, standing in long queues purchasing a ticket, it is much more convenient to shop the same online where you have wide ranger of carrier choices available. Especially in north America, where most agents booking tickets charge 57$ as surcharge and sometimes offer limited choices of carriers, buying ticket online does offer a very competitive choice. Buying a gift for sending the same to your friend or relative in some other city is also cheaper and convenient as many sites offer free delivery in desired city or some times, even a distant country.
What is most Popular Category for Online Purchase?
Travel, Share broking, content development are the most popular category. In fact for content development and data mining, physical offices have virtually become almost extinct because of high cost of operations of physical offices as rentals and other overheads. Tickets, for Rail, Cruise or Air travel are the fastest growing industry where even the airlines are preferring to avoid paper tickets and rather allow self online check in. Expedia is most popular site that offers travel and hotel stay arrangements and has grown so big that has tie ups with most leading operators. Because of high volumes generated by it, it gets good offers from operators and is able to pass on to customers.
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