| Too good to be true?The pros and cons of | | | | benefits of the internet were identified and |
| internet trading, a brief guide by Ed Baker.A | | | | appreciated at the session; the ability to |
| new market has emerged.It is now commonly | | | | browse, compare, search and research, and the |
| known that the last five years has seen an | | | | lack of overheads driving down prices, one |
| unprecedented rise in internet shopping, both | | | | thing became clear: people want an end-to-end |
| in terms of commercial sales and private | | | | experience. This means they want satisfaction |
| transactions. The online retail giant Amazon, | | | | from the first - confirmation emails, |
| who began life selling books, reported a 20% | | | | detailed tracking of delivery, fast shipping, |
| hike in sales in the first quarter of this | | | | reliable handling, guarantees, human and |
| year, to the tune of $2.28 billion. On | | | | helpful customer service, a check-back and |
| average in the UK, 2.5% of household spending | | | | continuing support from the business. These |
| is now online, and this figure is rising.The | | | | comments applied not just to ebay of course, |
| phenomenon of search - the internets' ability | | | | but to the thousands of other online |
| to deliver potential answers to our infinite | | | | businesses that provide goods and services to |
| questions - has been the key benefit to the | | | | shoppers everyday.The issue of shopper |
| online trader. Search engines bring the | | | | security has become so important that the |
| market to the marketplace. Increasingly, they | | | | Office of Fair Trading commissioned a study |
| are being paid to do it. Google's AdWords | | | | in 2004, scheduled to mature in 2007, which |
| program accounted for over 30% of its income | | | | will examine awareness amongst shoppers and |
| last year, as it promises to deliver targeted | | | | traders. It will look closely at whether |
| "traffic" to online business. One cannot | | | | businesses are aware of regulations, and |
| perform a search nowadays, it seems, without | | | | whether individuals are aware of their |
| happening upon a sponsored result near the | | | | rights. Did you know, for example, that as |
| top of that little green column to the right | | | | consumers we are entitled to a "cooling off |
| of your screen that says, | | | | period" of 7 days, within which we can expect |
| | | | a refund if we are not satisfied? Try telling |
| "get cheap '*******' on ebay, buy it now for | | | | that to the bloke you just bought a dodgy |
| '£***!'"A new market brings new | | | | Ford Sierra from over ebay last week.The |
| challenges.So it is that ebay has become the | | | | advice is simple - do your homework. The |
| prominent location for people to buy and sell | | | | internet is the single greatest resource for |
| their wares online. Implicitly transferring | | | | an individual to research a given topic. |
| Harrods' "anything from a pin to an elephant" | | | | Spend some time comparing prices, services |
| claim to the ether, the buyer is assured that | | | | and market value. You can use to check |
| he will be able to find literally anything | | | | ratings of vendors posted by their customers, |
| for sale in the auction sites' vast virtual | | | | and you can read independent reviews of |
| stockroom. It is this very vastness however | | | | products before you buy at Examine the |
| that has begun to spell trouble for the | | | | companies carefully - are there any hidden |
| company, and its consumers.The lack of human | | | | costs? How do they make their money? Honest |
| interaction, guarantees, a bricks-and-mortar | | | | businesses will be upfront about commission |
| existence, and the absence of strict and | | | | and delivery charges. They should also have |
| comprehensive regulations have allowed | | | | an address or at least phone number, |
| unscrupulous dealers to flourish online, | | | | preferably toll-free, where you can talk to a |
| particularly on the larger auction sites. | | | | customer service representative for your own |
| People create an identity, advertise a | | | | peace of mind. A money back guarantee is a |
| product they may not even have, collect the | | | | must if you can get it, and if buying from an |
| money and simply vanish. More disturbingly, | | | | individual, find out as much as you can - do |
| sophisticated criminals are now able to use | | | | they have a number or email address? Strike |
| sensitive credit card information from other | | | | up a dialogue and don't buy blind!Trust - the |
| online consumers to assume identities and buy | | | | key to success.As a seller, all of the above |
| goods. Witness the recent case of Terrill D | | | | must be taken into account, with one concept |
| Johnson of Ilyssa Way Ohio, who used credit | | | | at the front of your mind - trust. Businesses |
| card receipts to obtain $18000 worth of | | | | especially must strive to build trust into |
| merchandise through Amazon.The global nature | | | | their reputation. They must meet the needs of |
| of ebay has brought its own pitfalls. Many | | | | the consumer in providing a real physical |
| buyers and sellers are not aware of the | | | | identity to back up their online presence |
| cultural or legal differences governing trade | | | | -the website is not enough. Be open, be |
| outside the borders, with the result that | | | | honest, keep it simple. It is better to |
| buyers foot huge premiums for the processing | | | | specialise in one type of product or service |
| of foreign orders and often end up | | | | than to have a free-for-all; imagine how |
| empty-handed if they unwittingly attempt to | | | | impossible it must be to police ebay and how |
| purchase something prohibited in their | | | | confusing it is to a first-time buyer.For |
| country.One of the common misconceptions | | | | variety and value, not to mention freedom |
| about ebay is that if the seller has lots of | | | | from the old-fashioned "hard-sell", the |
| feedback, the majority of it positive, they | | | | internet is becoming the number one choice |
| are a safer prospect. Recent studies have | | | | for today's consumer, and it is beginning to |
| shown this is simply not true. Satisfied | | | | produce its own code of business practice. |
| buyers on the whole don't bother to leave | | | | For companies in particular, the goal must be |
| feedback, they just get on with enjoying | | | | to set new standards of service with a |
| whatever they bought, hence the presence of a | | | | simple, clear, guaranteed and reliable |
| dialogue between buyer and seller can often | | | | service, underwritten by an accountable, |
| indicate some problem or lack of clarity | | | | human presence offline.For more information |
| somewhere in the transaction.In April of this | | | | on internet trading you can read "Don't get |
| year I attended a market research evening for | | | | burned on ebay" by Shauna Wright, O'Reilly |
| ebay, run by the company Saros, who source | | | | press, and "ebay - the missing manual" by |
| everyday consumers to give detailed | | | | Nancy Conner, Pogue press.Ed Baker is |
| information and constructive criticism about | | | | business development manager for |
| a particular product or service. The three | | | | allticketclub.com, an online site for buying |
| hour session focused entirely on buyer | | | | and selling event tickets, currently the |
| security, indicating that ebay has recognised | | | | market leader for customer satisfaction and |
| the widely-held view that its' site favours | | | | customer repeat business.Ed Baker is business |
| the seller and affords inadequate protection | | | | development manager for - the leading online |
| to the prospective buyer.A new marketing | | | | ticket market for sold out and exclusive |
| model emergesThe experience shed light on an | | | | tickets. He has written articles on |
| interesting concept that I believe some | | | | everything from music criticism to marketing, |
| businesses are already developing, and more | | | | incorporating principles that deliver |
| and more will need to devote time to - that | | | | successful growth to online companies. |
| of the "user journey". While the existing | | | | |