As to how we shop changes from one generation to the next, the level of shopping that took place in local history is no longer the same. Traditional retailers have a set a platform that is difficult to copy and transition into the e-retail without pointing out some factors that involve e-shopping. Retail is changing its platform to satisfy the needs of consumers that are always on the go e-shopping has increasingly become more popular. According to the book Internet Retailing and Future Perspective, “Online retail shopping in the UK continues to grow and is expected to grow by 44.9% in the coming years to reach £62.7bn in 2020, accounting for 17.1% of total retail sales (Ormrod, 2015)” This further entails the implications as to the perceived risk of e-shopping.
In the world of functionality where our buying behaviour largely determines how we live our lifestyle, the accessibility in how we can shop with convenience has become more widespread as the internet is becoming more and more readily available, meaning how the needs of getting the product of wants and needs right to our doorstep or merely purchasing a product with click away is no longer a dream. The reality of making a world a more accessible and convenient place has lead to retails being innovative in the way they must sell their products.
For e-shoppers, the convenience lies in more willing to buy without handling items and like shopping but now crowds, greater need for convenience and product assortment, more price-conscious and seeking a price advantage, infrequent shoppers that make unplanned purchases. While emphasizing on a belief that it is easy to use electronic shopping, less concerned with convenience for shopping, recreational shoppers and shopping innovators. From a non-store shopper to a Word Wide Web, online shopping gave rise to e-shoppers we know of today, which encompasses more impulsive buyers, less brand conscious and less price-conscious while being convenience-oriented.
The perceived risk that is presented in this case relates to the touch and accessibility issue, from not being able to touch merchandise before making a purchase, and barriers to returning the merchandise these two perceived risks have other dimensions
- Financial risk — the probability of making poor purchase decisions.
- Social risk — the possibility of incurring societal disapproval for engaging in shopping using a particular medium.
- Performance risk — the chance of product/service performing less than expected.
- Personal risk — the potential for theft and abuse of credit card information.
- Privacy risk — the danger of compromising personal information.
Different buying behaviour explains different risk individual retains while making online purchases. This implication further outlines the motive of shopping behaviour, including role-playing, diversion, self-gratification, physical activity and sensory stimulation. At the same time, social incentives also play a big part, such as standing out in amidst peer group, maintain status and bargaining are among the top reason for social motives.
While this certainly explains the perceived risks underlining them becomes crucial to move forward and build a better shopping experience for those that love shopping online, bringing that same experience from traditional retail to e-retail is a big challenge. Sensory is a significant aspect. As human beings, we like to use them whenever possible, especially now that the information is more readily available, finding out the material or quality of a product is a necessary component for a successful retail store.
To understand the e-shoppers, experience understanding the advantages and disadvantages become important
Advantages
- Cost-effective
- Convenient
- Easy
- Saves time
- Fits in with other activities
- Breadth and depth of product
- Easy search of many alternatives
- Personalization of presentation and merchandise
- Prices favourable
- Discreet Shopping
While…….
Disadvantages
- Credit Card and security worries
- Lack of personal and social interaction
- Can’t see or feel the merchandise
- Don’t know-how
- Can’t be in to receive delivery
- Premium charged for delivery
- Difficulties with returning goods for a refund
- Waiting
These differences of advantages and disadvantages can show the behaviour it takes to see the other side of the spectrum for someone who enjoys’s shopping but has a hard time trusting others will most likely look at the disadvantages before looking at the advantages. The benefits may not even remotely stand out compared to her fear of bringing sold the incorrect product. Understanding the mindset of the consumer will help in building better website ones that prove security towards a website where it’s interactive to the individual walking through all the disadvantages eliminating any way of not having the desire to make online purchases. The distance in which the transition needs to take place is still entirely new, and most retailers may not how to close the gap between the traditional ways of shopping vs e-retail.
E-retail is making companies rethink their approach, understanding why consumers like e-shop will be in understanding future buying decisions as branded retails will eventually move from bricks-and-mortar to bricks-and-clicks as the more clicks a new website gets the more chances of having that word of mouth while spreading their name like wildfire. Competition is high as others would be competing with a site like Amazon, eBay and Tesco. Which have come a long way in establishing themselves and making a point as they will always adapt as changes keep happening in the world of technologies these companies have proven innovation and adaptation.
Bricks-and-Clicks
Bricks-and-Click will play into the components of e-retail quality, such as fulfilment reliability, with the expectation of accurate display and description of a product so that what customers receive is what they thought they ordered. Delivery of the right product within the time frame promised. Website design will be a significant impact on consumers’ buying experience. What kind of website they are attracted to, therefore, a site that can be navigated easily will be something consumers will want, a website that has a place to search for information, order processing, personalization and product selection. Customer service will be a crucial impact as consumers will be looking for Responsive, helpful, reliable service that responds to customer inquiries quickly. Lastly, security and privacy no matter which website is being browsed; therefore, a sense of security of credit card payments and confidentiality of shared information is a big deal among consumers.
Conclusion
In Conclusion, the perceived risk of e-shoppers will come with a lot of changes as competition is taking place online than ever before. Making a change that suits the needs of consumers is what will make brands last longer and spread the word of mouth the companies are looking towards. Furthermore, the perceived risks give companies a clear path to follow and the challenges to tackle, allowing them to overcome some of the intricacies which come with new changes, and since these risks are unavoidable, understanding them becomes essential. From now, the world is moving from traditional to online as mentioned from bricks-and-mortar to bricks-and-click. E-retail is something that already incorporates into the lives of consumers. As new emersion of the website will arise, the trend that follows will also shape the history of retail moving forward. This history will then show how purchase behaviour changes over time and how the consumer thinks about shopping.
