Retailers Missed Out on $21 Billion in Sales in 2008
The impact of identity theft and a fear of online shopping caused retailers to miss out on $21 billion in online sales in 2008, according to new study released today by Javelin Strategy & Research. The study found that 12 percent of fraud victims report they no longer shop online, while 25 percent said that the frequency of their online purchases has decreased, and 19 percent say they now spend less money when shopping online.
Security is not the only issue online retailers face. The survey also uncovered that less than half of online shoppers (45 percent) are satisfied with their purchases when it comes to on-time arrivals and quality expectations. These customer service issues and negative perceptions are eroding consumer confidence with online shopping. Specifically, 28 percent of shoppers found their purchases did not meet their quality expectations and 37 percent stated their items arrived later than expected.
How Retailers Can Address Consumer Security Concerns
When it comes to increasing consumer willingness to shop online, Javelin found that merchants can motivate the overwhelming majority of consumers to make additional purchases by assuring that personal information is processed safely, offering stronger security measures and by guaranteeing price, quality expectations and reimbursement.
Specifically, the top five motivating factors that would convince consumers to shop more frequently are:
1. Assurance that information is being processed securely (83 percent)
2. Offering Zero liability against identity theft (81 percent)
3. Stronger security at the store website (80 percent)
4. A guarantee that the purchase will match quality expectations (80 percent)
5. A guarantee for the best price online (79 percent)
Join eBillme for a webinar on Wed, April 8th at 1:00 PM ESTfor an in-depth session on the study and learn how retailers can benefit by addressing the concerns of consumers who still shy away from eCommerce due to identity theft.
https://www2.gotomeeting.com/register/328830622
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