Nowadays everybody orders some products online. It varies from daily food till spare parts for your car. The benefits of online retail are multiple and I will not elaborate them anymore here on this blog. If you are interested in the top ten advantages of online retail I recommend you to check out to following website.
But I want to write about the disadvantages and risks which include online shopping, l have listed some disadvantages and risks, please feel free to add another one in a comment.
Online shopping consist of online payment. Of course a lot of firms are specialized in protecting and securing of financial transactions, examples of those companies are PayPal and Ideal. But a lot of cases are known of people whom hackers stole their money or credit card data during performing an online financial transaction. Often the bank refunds the stolen money but this doesn’t mean the risk of stealing money is neutralized. So always check if you are in a safe environment (https). Are you not, never make a financial transaction and still if you are in a https and you do not trust the website for 100% you should abort the financial transaction.
How do you know for sure if the web shop are honest entrepreneurs who will send you the product immediately after receiving your money? Always google the name of the web shop for some reviews. If they are trustfully you can continue your transaction. If you do not find any reviews, think twice before making a financial transaction!
And as last but not least
Fierce competition for the small and medium enterprises;
Online retailers doesn’t require to have a store/shop located at an A location with high rental cost per square meter. They meet their customers online so they are able to build a large distribution center at a C location. This results in much lower rental costs and thus in lower prices. Since the products are mostly comparable, clothing will remains clothing, the competition will be hard for the traditional entrepreneur with a shop in the city center. Besides the cost, is the online retailer able to sell 24 hours a day. The traditional retailer is only able to sell when he opens his store. Some entrepreneurs faces bankruptcy and will disappear out of the city center. Leaving behind unemployment, disillusionment and increases vacancy rate in the city center. What kind of entrepreneur is willing to take the risk to do business in the city center when the online retailer has so much advantages?
As Steve Balmer wrote in the annual shareholder letter: “There will be times when we build specific devices for specific purposes, as we have chosen to do with Xbox and the recently announced Microsoft Surface,“
David Zax, journalist for the MIT Technology Review, is pointing out that Microsoft is going Apple. We are also seeing that Google is going Apple, although still licensing other manufacturers to build the Nexus 7 tablet. Is the way Apple is doing it the right way? Does the customer benefit from a closed ecosystem? The user experience might be better, but the user is “locked-in” by the manufacturer.
What are your opinions on this move in the industry?