1. Online Shopping Behavior Review: An In-Depth Study
Index
Introduction: dilemma of online e-
retailers…………………………………………………………..Page 1
Abandoned shopping carts: reasons for such
trends……………………………………………..Page 2
Reviewing online shopping behavior: different influencing
factors…………………………Page 3 - 4
Introduction
Today online shopping is everywhere but statistics show that e-commerce sites
are yet to achieve the full potential of their online ventures. Initial days of online
shopping saw a marked rise in scams and spurious ventures. As people
experimented with online shopping and had an unpleasant experience, the
wariness of customers began to rise. It has been seen that annually e-commerce
sites make losses overall though some sites fare better than others. The security
measures that are being taken to gain back consumer confidence are being
heightened every month. However, a confidence that was shattered in the initial
period will take considerable time to mend and become strong again.
The main trend can be seen from the statistics of the number of shopping carts
that are abandoned at online sites. More than 60% of intended online shopping
gets curtailed abruptly and the shopping carts are left abandoned. In 2006 alone it
was estimated that, if 102 billion dollars was spent on online shopping ventures,
the abandoned carts themselves cost the vendors about 61 billion in lost sales.
Thus, this is an area that has captured the interest of many leading online
marketing research firms. Much research has been conducted to understand the
behavior of online consumers and what leads them to abandon their shopping

2. carts in online shopping ventures. The secret to such buying behavior of online
shoppers will aid internet vendors greatly. Much of the lost revenue potential can
be captured if such buying trends are identified accurately.
Abandoned Shopping Carts And Their Reasons
When one studies about review on online shopping behavior, the major stumbling
block is assumed to be the transaction completion stage. Why does a consumer
start to fill up his or her shopping cart but then abandon it midway? There are
research studies to indicate that the website quality and payment transaction
security are the primary reasons which either convince a customer to proceed
with the transaction or abandon it midway. The quality and security that a
website provides is depicted by several subtle factors. The presence of a reliable
merchant name who handles the payment processing for instance. This is
important since many people are hesitant to divulge their credit or debit card
details over the internet. Such fears are well founded since it has been found that
online payment frauds have a likelihood of occurrence which is thirty percent
more than frauds in the real world.

3. In regard to gaining consumer trust, shopping behavior reviews show a direct
correlation between the privacy policy statement and the willingness to share
personal information online. Those websites which have detailed privacy
statements which exude credibility usually have more success in gaining the trust
of consumers. The next step lies in the impact of third party assurance seals and
certification. It has been seen that companies who provide security in online
payment transactions such as VeriSign have a positive impact on the minds of
consumers. Those e-retailers who have the backing of such certification can enjoy
more successful online transactions and sales.

4. Reviewing Online Shopping Behavior
When studying buying behavior or reviews on online shopping, there are many
demographic factors to be taken into consideration. The age and attitude of
shoppers towards online shopping has an impact on the likelihood of transactions
being completed online. In general it has been noted that younger shoppers are
more eager to shop and hunt for products online. But that does not automatically
translate into buying. Young people who are students may have aspirations for
many products that they look for online. But being at a stage when they have
limited spending allowances, they are more hesitant to complete online shopping
transactions. This demographics group is likely to experiment more and abandon
their shopping carts at the last moment. The older generation may be less likely
to browse for products but when they do, it usually ends up as purchases. That is
mainly because the convenience of online shopping and bargains may well offset
the hesitation of online shopping. Once a site gains the confidence of customers,
the orders keep flowing in repeatedly by same section of consumers. Amongst
demographic factors, gender also plays an important role. It is a well known fact
that women love to shop more than men. But that is a trait that is seen in the
outside world. When it comes to online shopping, does that still apply? Since the
convenience of online shopping remains same for men and women, it would still
indicate a greater tilt towards women. Housewives and women holding part time
jobs or small vocational work usually find more time to browse through social
networks and shopping sites. Again, there are always a greater range of products
to shop for amongst women than amongst men. However, many women may feel
tempted to buy products online but they may not feel secured to divulge their
credit card information readily. Again, many women have limited spending power
which leads them to abandon shopping carts more often than men.
Amongst the factors that affect the internet buying behavior of people, the
attitude towards buying from the internet is the first factor. This is a behavioral
inclination to trust the internet as a source of shopping or place from where one
can buy goods and services and rely on the vendors or retailers for sending across

5. the goods and services as seen on the internet. The inclination to trust the online
shopping sources is again built through certain social and economic customs.
Many societies across the world are much less exposed to the online world than
others. These societies will take considerable time to be educated about the
conveniences of shopping online and again, may well burn their fingers before
they learn to find their way around the internet. In modern urban societies young
and old are turning to the internet more these days as conveniences are
exceeding their need for precaution. With the assurance seals of reputed
payment processors and privacy policy statements on every site, people are
becoming more relaxed about sharing their personal information online.
The second factor that influences online buying is brand equity. Just as in the
brick and mortar world, companies too have to make their brands as established
and recognized with the right attributes in the online market. Those brands which
already have considerable brand equity in the real world face easier success
online as well. For those who are trying to build their online presence, they need
to invest in considerable marketing efforts to make their presence known and to
establish a reliable brand image. Today many companies are launching online
images directly. Though that leads to considerable savings on one hand, it may
also take time to gain the trust of people when a brand has a pure online
presence. However, there are many iconic websites and domains such as those
selling internet music or online retailers who have become big names today with
huge turnover rates. Now business flows easy for them as they have the
confidence and trust of consumers across the world.
The third factor that features in all review articles regarding online shopping
behavior is concern for privacy of personal information. How well protected is the
personal information that is asked by all websites when one goes to shop online?
Nowadays every website or e-retailer wants to build a database of customers and
their demographics who shop on their site or express an interest in their sites.
The information can be used in many ways but what customers are more
concerned is the leakage of information when one is divulging such details on
such sites. There are rampant phishing software nowadays which can pick up
personal details divulged in sites and use them in many harmful ways. Though

6. there are many privacy protective software that one has on their browser, the
same is expected on the sites where one is divulging their information. Websites
which gain the trust of consumers in this way are able to see increase in sales and
profits over time.
As in case of real world shopping, much success of online ventures lies in the way
and the frequency of communication that they establish with their customers. In
the case of online shopping, as per shopping trend reviews, the online mailers
which are sent to inbox of registered members prove to be a constant reminder
to the customers of the great deals that they are missing out at their e-retail sites.
While in the real world it may be possible to ignore the billboards or the
newspapers, in the online world, the bombarding of mailers in one’s inbox is
harder to ignore. Again, many online companies can personalize the marketing
campaigns as per demographics of online customers through the information that
they pick up from their registration details. Thus, the online marketing campaigns
can be more targeted and effective. Thus, communication is a tool which can be
effectively used in the online world of shopping. Consistent communication with
one’s registered members will help one to gain their trust and will help to put
their name on the top of the list when it comes to online shopping.
The fifth factor that determines the success of online shopping ventures is the
perceived usefulness of the product or service which is being sold online. The
online is a medium which has its own characteristics. There are advantages and
limitations of the medium. Thus, shoes bought online is a much more recent fad
than electronic goods bought online. Web hosting is a service that can only be
purchased online while buying organic meat might be a more recent online
shopping venture. Granted that technology is allowing people to perceive
attributes in goods and services than never thought possible, there are still
certain goods which are more easily sold online than others. Hence, the perceived
usefulness of a good or service has much to do with its online retail success.
Clothes, accessories and other lifestyle products have a higher success rate online
than grocery and other perishable goods. Thus, the nature of goods and services
being sold online has much to do with the success that an online company sees.

7. The final factor that helps websites clinch successful transactions everyday is the
perceived ease of use of technology used in their websites. There are many
websites which may have an attractive design and layout but when it comes to
payment processing, the websites lose customers as they redirect to a third party
site which requires elaborate steps to be completed in order to complete the
online transactions. People want convenience and speed along with security
when it comes to online shopping. And if a website is perceived as providing the
right design and layout as well as minimal steps to complete a transaction,
customers are going to return to the site over and over again. Many websites
understand this need. Thus, for registered customers who have already shopped
online, their information is stored with due permission and these websites do not
need the customers to be filling in the details time and again. That allows one to
reach the checkout page in the blink of an eye. These websites make shopping
within seconds and one loves to come back to such sites all the time.
There are many in depth online market research papers which have delved into
the dilemma of failed online shopping transactions. Gaining the trust of
customers when the retailer is simply an online website and not a human face
requires considerable tact and strategy to convince customers. The online media
of shopping has its own benefits and limitations and those who are able to cash in
on the benefits and avoid the limitations are being seen as the online
entrepreneurs of the 21st century. With rise in estate and logistics costs, the
online world will soon be the place to shop, from dinner for the night to
investments for the future.