Online Shoppers Worry About Security
Eight in 10 consumers who had a preference said they would spend more online if they had a safe substitute to credit cards, according to Javelin Strategy and Research’s "2007 Annual Javelin Consumer Payment Poll".
Respondents said they would spend $100-$1000 more per year with other payment methods. Many online shoppers already use alternative methods of payment such as PayPal or a similar service. The Javelin study focused on consumers who believe existing payment options are not safe.
Improved security and credit alternatives were the main factors that would convince consumers to make more online purchases.
Two-thirds of respondents limited their online shopping because of fear of identity theft.
The main fear of those who do not buy online was the possibility of information being intercepted during a transaction or accessed by unauthorized parties.
While retailers have done a good job addressing consumers worries about online shopping, a third of Internet users were still not online buyers in 2006.
eMarketer Senior Analyst Jeffrey Grau says, "Many of the concerns consumers have about online buying are based on irrational fears. Nevertheless, these fears must be addressed."
"Having a simple return or order cancellation policy, displaying customer product recommendations and reviews, and having an easy-to-use site all help build consumer trust."