The internet is the driving force behind online shopping because it makes transactions between different parties possible. Online shopping has positive impacts towards customers as it makes shopping fast. It has negative impacts on small businesses that have to compete against wholesalers and big retailers. Security standards used in online shopping are well-established. The security standards make it possible for payments to be done using credit cards. The card’s details are encrypted then sent over a layer that is secure over the Internet. The large number of sellers and buyers going online is an enough testimony about the safety and acceptance of online shopping.
Consumers do not opt for online shopping because of low prices. Though lowest price can be a motivation for online shoppers, other factors other factors are still important. Online shopping offers better services than visiting stores. Most e-retailers offer free shipping that customer’s value the most (Thau).
Many shoppers do not say low prices are their primary attraction and motivation for doing shopping over the internet. This statement was proved by a study done by Simon-Kucher & Partners, a worldwide consultancy firm that counts and records retailers among its clients. The firm did a survey over 1000 consumers. The consultancy firm warns retailers against making lowering prices. The firm says that the retailers who will lower their prices to attract and keep customers will have to undergo long term negative impacts because of that (Thau).
Although it might sound unappealing, the retailers who invest in infrastructure will get long-term customer loyalty. This was concluded by Susan Lee, a partner who conducts Simon-Kucher’s retail and consumer goods in northern parts of America. Retailers only need to study and look at recent strategies employed by the nation’s biggest brick-and-mortar retailer.