Why Buy Online? Benefits And Pitfalls Of Buying Goods Or Services Online.

There are both, valid reasons to make a purchase online and sometimes also good reasons to not make purchases online. This here will explain the benefits and the pitfalls to allow you, the reader to make informed decision for when deciding to purchase goods or services online, using the internet.

Over time, many websites have garnered reputation for being at least, very safe for making online purchases. Sites like Apple's iTunes, Amazon.com, eBay.com and the like. Purchasing physical or electronic delivery of goods using sites like this is more often than not, an easy, straight forward and usually quick and pleasant experience.

So what are some of the benefits?

• Convenience with easy shopping by merely browsing category pages (games, electronics, phone, toys, books, music, etc)
• Differing types of payment options (Gift cards, redeemable vouchers, credit card, Paypal, online bank transfer, bank cheques *** only certain websites allow for this)
• In the case of a digital purchase, ie, game, music, movie, instant download is available.
• No queues, no waiting in line or line hopping, no looking for parking, no irate customers in stores, no crowds.
  
• 24/7 shopping
• In the case of physical products, usually shipped within 48 hours to a specified mailing address (A good option if you only have a P.O. box)
• Additional information on terms, shipping, and a way to contact the company if one has queries or wants to find out about resolving any potential issues or late shipments
• Consumer trust in the brand and its overall reputation
  

At the other end of the spectrum and many of us may have ourselves or know of others whom have experienced horror stories. Once this happens, a person is more likely to never use online shopping as a form of buying goods or services again.

This may involve using a website that has no or little reputation, shoddy dealings with others in the past with no real way to ascertain their previous dealings with other unsatisfied customers (hence why sites like eBay have a feedback system). Over charging of credit cards, or items lost in transit with no shipping warranty (or none provided).

So what are some of the potential pitfalls?

• Goods are ordered and paid for, yet never received by the customer
• No information provided to be able to track shipping of an item purchased
  
• No way to contact a seller (no phone, mailing address, email or other means of contact)
• After purchase website is shut down
• Customer is charged much higher than the original purchase price.
• Goods received is not what was ordered.
• An a very long amount of time to receive purchase, especially after time for delivery is advertised
• A purchase may be a 'gray imported' item, which can mean no option of warranty, ie, goods purchased in the USA, yet the supplier actually is supplied by a Chinese manufacturer, and may not be covered by warranty in the country of purchase.
  

The ugly, the nefarious, the outrageous. This is when you are purchasing goods, or services, and what you purchase has been a total setup, a scam. The outline of the product or service may be too good to be true. Here are some to look out for.

These dealings with others whom use websites, emails and unbelievable deals or promises through advertising on the web are best to be AVOIDED. If it sounds to good to be true, it is, and if it's not setup to have you empty your wallet or bank account, it's definitely a scheme to use you or your personal details in illegal activity.

• You purchase a retail DVD title, and it turns out to be a cheap burnt copy.
• You purchase retail computer software and it is an OEM version of the product. OEM is illegal to sell without hardware.
• You purchase insulation bats for the house for insulating your house roof and the website disappears after 48 hours (end result - alot of customers who are angry and suddenly out of pocket)
• You see an advert for spending $5 dollars to make one thousand dollars in a very short amount of time, and then find out people are being contacted by the authorities for a scam (pyramid scheme)
• You receive an email from an Oil Magnate/Diamond Dealer/Wealthy inheritance in Nigeria (please) who has suddenly come into millions of dollars and wants to use YOUR bank details to deposit the money, because he doesn't want to trust his family with his wealth, after you take your $5000 dollar cut (for your generous time). This is an insidious plot to use your bank for laundering money and is the current theme used on the old Nigerian Fax scam used in the 1980's and 1990's. People have had their bank accounts emptied out as well.
  

When using any website online, here are some good tips and guidelines to ensure your dealing with reputable companies and essentially getting your 'bang for buck' when hunting for a reasonable purchase, online.

• Ask questions, where is the business located (if the website is a online extension of a 'bricks and mortar' business. Is their a contact or customer sales number, an email address.
• Keep an eye on the media, they love to report when a website has been shut down or even when a major has had issues, the bad sites will be shut down, the trusted big name brands can weather these storms and still continue to trade, yet may have to spend time to restore reputation and renew consumer confidence with them.
• Length of time on the web also garners reputation, Amazon, eBay, iTunes are good examples of reputable, well known and well established business that also operate online.
• When making transactions, ensure the security is set on your web browser, at a shopping cart screen, you will see the website starts with https: and there also will be a closed yellow padlock at the bottom, right hand of the web browser.
• For the most effective use of funds for purchases, use Paypal, or even a pre-paid credit card for online buying.
• If you purchasing from a Seller on eBay, reputation is everything. Check out the sellers feedback and if their are lots of happy customers (usually feedback of 95% and above) your purchase should be a relatively smooth experience.
• Ask your family and friends who are computer savvy and ask about any online transactions they have recently done. Which company did they use? When did they receive their product? What was the companies website like to use? Did they have any difficulties at any time?

In recent times, the evolution of purchasing online, not just locally, yet overseas has seen a dramatic change in buying habits of Australians in a very short period of time.

Combine the events of purchases from international traders for Australians does not incur a GST tax for buying goods under A$1000. GST is a goods and services tax and is the same as state sales tax in the USA or VAT tax in the UK. In addition, due since the global financial crises, Australia has benefited from a higher than usual exchange rate and also Australian retailers especially those chains who deal with electronics, furniture, computers and the like have had the benefit of high margins for many years. Prices have also dramatically dropped, yet many varied goods available overseas, are much cheaper than local equivalents.

The issue also remains, irrespective of a high exchange rate, it is still an expensive proposition for Australians to purchase many digital based products as the US price converted is still higher than an Australian price, if the product is available to Australians, otherwise some digital products are simply not made to be purchasable by Australians.

This is a huge potential for other industrialized countries to experience the same or similar shopping experience, once the respective economies get back on their feet. The powerhouse of the economic growth of China will see demand for market purchases of these products by Australians, Canadians, United Kingdom, Americans, South Africa, Japan, and other strong first world economies.

Highlighting the above of the change of buying habits, shows that significant changes (like my Australian example) which for keen shoppers and buyers online their purchasing decisions happen rapidly and the older bricks and mortar business, although big, may get hurt or damaged in their slow changes to this online onslaught.

Buying goods or services online does not need to be a difficult or daunting process, with just a small amount of care, consideration and education, your experience is hopefully a repeatable and positive one.