Disadvantages and advantages of e-shopping for consumers

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E-shopping has become a mainstay in today’s world.  Everyone is shopping online, from 13 year old kids getting music or games for their phones and other devices, to an 80 year old who is ordering their prescriptions to save money.  E-Shopping was invented in 1994, as an alternative to phone ordering, which was popular at the time.  Time Magazine states that in 1994, 98 million customers made $60 billion worth of purchases from home, most through phone ordering since e-shopping was just in its infancy.  Statistics say that in 2016 an estimated 1.61 billion people worldwide purchased goods online. 

Advantages to e-shopping:

As with anything in life, there are advantages and disadvantages to e-shopping.  According to Donna Montaldo from thebalance.com some advantages to e-shopping are:

• Stores do not close.

• Shoppers can be comfortable in their pajamas.

• Shoppers do not have to spend money on gas driving to the store.

• Shoppers do not have to deal with trying to find a parking spot at the        store.

• Shoppers are not cornered by salespeople.

• No crowds.

• No waiting in long checkout lines.

• Shoppers can see others opinions on the products and make responsible shopping choices.

• There are more choices for buying refurbished products.

• Online sales representatives often receive more intensive product training than those at the local stores.

• Online sales representatives often have more flexibility with making decisions such as applying coupons, meeting competitors' prices and expediting shipping at no extra charge.

• Online stores offer products at very low prices because their overhead is lower.

• Ability to get products from other countries.

Most of the advantages listed above have to do with convenience for the customer.  We are an instant gratification society, so we do not like waiting in line at a checkout, or having to deal with trying to find a parking space. Processes like e-shopping, which can make the customers life easier are a definite advantage to most busy people.

Within the last year or so there has been an insurgence of stores utilizing both e-shopping and traditional shopping.  Retailers like Macy’s, Walmart, Kohls, Target, Lowes, and Home Depot are offering their customers the option to order items online, and then pick them up within their stores for free shipping.  Personally I have used this option many times at Kohls and Target. I enjoy it as it is easy for my husband or me to run into the store and have the items ready for us to pick up right at the customer service desk.  One advantage of this model is customers can use online discount codes which they would normally not be allowed to use in the store.  Walmart in particular offers customers a discount for certain items ordered online and picked up in their stores as opposed to them shipping the products to the customer.  Courtney Reagan with CNBC states that within the last year retailers are reporting customers using this option 44 percent more than the previous year.  Target reported that around the holiday season more than 50 percent of their online orders were picked up in one of their stores and one third of those customers made additional purchases once they were at the store.  Macy’s and Kohls have reported an average of 25 percent of their customers add items to their carts when they pick up their orders in store.  Customers are stating speed as the top reason why they are choosing the pick up in store option.  With this pickup option there are advantages to the retailer as well, they can save money on shipping costs and there is a potential to sell more items to the customers when they come to the store.

  

According to retailmenot.com there are many more retailers that offer this model such as:

• Apple

• Banana Republic

• Bed Bath and Beyond

• Best Buy

• CVS

• The Container Store

• Dollar Tree

• Gap

• JCPenney

• Joann Fabric

• Kmart

• Nordstrom

• Office Depot

• Outback Steakhouse

• Payless

• REI

• Sears

• Staples

• Tiffany & Co.

• Toys R Us

Overall, it looks like the pickup at store option retailers are offering is a popular option with customers and we could see more retailers offering it in the near future.   

 

Disadvantages to e-shopping

Montaldo also talks about the disadvantages of e-shopping in her article. She states some of the disadvantages are:

• Communicating dissatisfaction can be difficult online for customers.

• Contacting upper level management is easier in a brick and mortar store.

• Customers do not have the ability to inspect or try items on.

• Customers cannot negotiate the price and payment terms of items.

• Items ordered online can sometimes be back ordered, and customers may not know until later.

• Customers do not always know if a site is a legitimate retail store and if it’s safe to shop at.

• There are additional fees for customers often times when returns are made.

• Customers do not have a specific person they can resolve issues with.

• It can be easier to go to local stores to get refunded when there are price drops during a guaranteed price period.

• Customers cannot take advantage of seasonal statewide tax-free shopping events.

• “Online stores advertising free products will sometimes increase the cost of shipping so that they profit from the purchase. For example, shoppers may get three free software programs, but paying $14.95 in shipping or handling charges is higher than what would normally be charged and likely covers the cost of the three items plus shipping” (Montaldo, 2017). 

The disadvantages listed above are not new.  Most have been around since e-shopping became popular.  These disadvantages do not seem to derail the popularity of online shopping and the advantages that are present for the customer.  Retailers have made it easier for some of these disadvantages to be eliminated.  Most online retailers will offer customers free returns, especially if the retailer has a brick and mortar location.  When customers return items to the store it is saving the store money in the long run because they can sell the item again at the brick and mortar store without having to send it back to a warehouse.   Personally, the biggest disadvantage I see with e-shopping is the delay time it takes me to receive my product.  Amazon has helped in this process with their free two-day shipping. However, if there is a product that I need ASAP, I will have to go out to a store and purchase it or use the pickup at store option if that is offered.

Overall, I feel like there are more advantages to e-shopping than disadvantages. I am a big proponent for e-shopping.  For busy people or home bound individuals, I think the ease of having products sent directly to your home is a great advantage to make their lives easier.  On the other hand I know individuals who do not want to deal with the “hassle” of e-shopping and they prefer the traditional method of going to a brick and mortar store to complete their purchases.  Most of these individuals tend to be of the older generation.  People of a younger generation have grown up knowing the ins and outs of e-shopping, as well as just using the internet in general. Because of this, I feel that people under the age of 40 have more of an appreciation for e-shopping and utilize it more.  I think that as with most things there are some people who prefer both ways. With this thought in mind, I do not think that either option will be going away anytime soon. 

Sources:

Montaldo, D. L. (2017, March 30). The Pros and Cons of Online Shopping. Retrieved from The Balance: https://www.thebalance.com/the-pros-and-cons-of-online-shopping-939775

Online-Shopping and E-Commerce worldwide: Statistics & Facts. (n.d.). Retrieved from Statista: The Statistics Portal: https://www.statista.com/topics/871/online-shopping/

Pyros, A. (2013, September 30). A Pickup Line You’ll Love. Retrieved from The Real Deal by RetailMeNot: https://www.retailmenot.com/blog/sites-that-offer-in-store-pickup.html

Reagan, C. (2017, November 24). More holiday shoppers are rushing to the store to pick up online orders. That's a good thing. Retrieved from CNBC: https://www.cnbc.com/2017/11/22/more-holiday-shoppers-rushing-to-the-store-to-pick-up-online-orders.html

Tuttle, B. (2014, August 15). 8 Amazing Things People Said When Online Shopping Was Born 20 Years Ago. Retrieved from Time Money: http://time.com/money/3108995/online-shopping-history-anniversary/