Marketing Information; Why Consumers Don't Buy Off the Internet

Info Items

I'd Buy on the Web, Only If.............

Not All The Reasons Are Internet Based

During the very recent study of holiday eCommerce on the Web, we found huge levels of purchasing, but the reality is that the majority of Web users don't buy on-line. The reasons for this are sometimes clear, sometimes not. It's also clear from this data that the Web is not really a complete replacement for the retail experience, despite the plans (and stock valuations) of the e-Tailers.

If we look at people who are currently on the Web, but didn't buy there during the most recent holiday season, the key reasons are fairly straightforward. Some people just prefer to shop at traditional retail stores. And we all know that there is still a great deal of concern over credit card security. While there have been a lot of commercials and communication to assuage these fears, the reality is that most of the Web users are not convinced. While this is a pretty straightforward message, what the internet community has seen much less clarity on concerns the use of personal information gathered during these transactions. The Web users concerned with their personal privacy tend to be more knowledgeable and aware of just how much they could be giving up if someone were able to steal their personal information from a Web transaction. It's my opinion that there has to be a much more straightforward and blatant attempt for commerce sites to tell prospects what will happen when they enter information. Also, those obnoxious surveys that get in front of the transaction are turning off customers in droves and should be eliminated.

Source: Holiday e-Commerce Survey

It's also worth noting that human interaction, either the retail experience or the phone, do matter. The new Web technologies that allow for simultaneous phone and Web interaction with telesales people will be a key technology. It won't solve all the problems, but it should be highly valuable.

Looking at the entire US adult population and their fears about Web buying, there are two key aspects with intriguing findings. First among these is that non-Web users and Web users that don't buy tend to have the same level of misgivings about credit card security and fraudulent sites. This means that programs to alleviate these fears not only help drive commerce from current Web users, but also the future Web population as well. Further, credit card fraud is the overriding issue on their minds.

Source: Holiday e-Commerce Survey

Marketers must also be aware that concern over fraudulent businesses on the Web is still a major issue. This means that using traditional marketing programs in print, radio, and TV to get name- or brand-recognition, along with methods on the Web site to reassure the customer, are important to generating the maximum possible business.

The good news is that the barriers to Web buying are not difficult to solve and are very straightforward. We'll be doing regular e-Tail tracking here and will report on the changes to the barriers that are preventing Web-based commerce from becoming a huge part of GNP.

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