Online Shopping: Advantages and Associated Problems

internet shopping

Global trend of using the Internet to buy and sell various goods in recent years has been steadily increasing. Even in tough times of crisis, in contrast to the major economic indicators, online shopping and internet auctions have only increased their sales volumes. This is not surprising – because there you can buy the same items as in conventional stores, but much cheaper. The possibility of making a purchase from the comfort of home and the range of goods, which is bigger than even in the largest supermarkets, made the trade through the World Wide Web is optimal for any modern man.

 

Now with major electronic trading platforms you can buy, without exaggeration, almost everything: aircraft carriers, ballpoint pens, and toilet paper. Along with the goods priced at $1, there are other almost priceless items with the initial price of six figures. For example, one of the most expensive items was a 340 year old manuscript of Shakespeare “Prince of Tyre” valued at 5,000,000 English pounds.

 

According to experts, the growth of online sales in the foreseeable future awaits a new upsurge. Internet is the same sales channel, but in many ways more attractive than the classic.

 

However there are some security risks associated with some countries. According to statistics, often fraudulent attempts are recorded in such countries as Nigeria, Russia, Ukraine, Lithuania, Romania, Yugoslavia, Bulgaria, Egypt, Israel and Pakistan. Some retailers refuse to deliver the goods ordered from those blacklisted countries. For example, some online stores in the United States flatly refused to work with buyers from Eastern European countries.

 

But apart from the refusal coming from the stores and auctions, a buyer who has decided to benefit from the purchase of foreign goods on the Internet may face problems of a different kind. Difficulty with payment and delivery of goods may scare not only a novice buyer, plus the lack of language knowledge may possess a huge issue.

 

Percentage of scam sellers is very small, in most cases they care about reputation much more than money, especially when they are involved in long-term trading. Besides a payment made though PayPal is very secure, so in case the goods are not received within 30 days, you are likely to receive a full refund including shipping costs. Of course, if the purchase is delayed through no fault of the seller, then you risk getting a negative review, but the money still remains with you.

 

Initially you will be confused with things like bidding at auction, delivery and payment terms, money transfers, and customs clearance, but over the time and will a little more experience you will realise that the time and nerves saved with online shopping will pay back! And if we think of money saved on the cost of the goods, then we can say that online shopping is one of the best and safest methods of purchasing goods that has ever been invented!

Choosing a Payment Method for Online Transaction

credit cards payment

Do you want to buy a sewing machine or car spare parts, fashion accessories or fabric for your new suite? Why to search all the stores on a high street while it is much easier to make a purchase online at that store’s website and order next day delivery at your door?

 

In addition to better prices for goods bought online there are some other advantages. For example, the possibility of not leaving the house to pay for a purchase by credit card and get the ordered goods at home out of the hands of the courier.

 

Modern methods of trade require modern ways of paying for purchases. There any many different way like commonly used debit or credit card, cash on receipt or electronic money.  But let’s explore those different methods one by one.

 

Payment by VISA and MasterCard

 

Perhaps the most popular way to make purchases online is plastic cards from various banks. However it is important to check whether your card comes with the option to make purchases online. On the reverse side of such card you will see a three-digit CVV2 code.

 

Just a few years ago the payment was made directly on the store’s website. Customers had to take risks and to type all payment details every time they made a purchase. Now for the payment transaction it is sufficient to obtain a one-time password on a mobile phone, and the whole process of payment is taking place on the website of the bank that issued the card.

 

You can create your personal page insider your Online Banking profiles that will store your payment details, so the payment will be done almost immediately with a minimum commission.

 

Payment by Wire Transfer

 

This payment method requires an existing bank account to make a transfer of funds. In this case online store will issue an invoice for a certain amount for the goods purchased, and the customer will pay for it though bank using his checking account.

 

The method is undoubtedly convenient, but only organizations. For the average buyer, however, this method of payment of purchase is not ideal since you would need to go to a bank first to arrange for a transfer. Also, there are usually a fee involved which makes the transaction quite expensive compared to instant VISA and MasterCard payments.

 

But this method of payment has one undoubted advantage when the seller’s bank details are known in advance which gives the buyer a guarantee of receipt of goods or services.

 

Cash upon Receipt of Goods

 

This is one of the most popular ways to making internet purchases. The advantage is obvious: you can personally see the goods before paying your hard-earned money. You can check your goods and opt out if you’re not satisfied with them.

 

Most of the time option is available when company’s warehouse and receiver and within the same, so a courier is handing the goods “from hand to hand.

 

Electronic Money

 

This is undoubtedly the future of internet shopping. It is extremely convenient and probably the fastest way to make purchases online. Amongst advantages are small commission, simplicity and convenience of services, the ability to buy and pay for purchases with any currency and in any part of the world. This is quite a new way of payment and it is constantly being improved becoming more reliable and affordable.

 

Electronic money is the most modern and convenient way to make purchases in online stores. Some countries are using this method more often than others. For example, the most famous Russian payment systems are WebMoney, Qiwi and Yandex Money proved to be very successful ventures.

 

To perform operations with electronic money payment, you must have your own e-wallet in the system. To open the wallet you will be required to go through a simple registration procedure in one of the selected payment systems and transfer a certain amount of money to your account. Later when you need to deposit some money, you can use a bank transfer, credit card, postal order.

 

Let’s talk about PayPal which is the worlds’ most famous electronic payment system. It has been successfully operating in 190 countries around the world and online auction Ebay made it a dedicated check out platform – perhaps, that was the moment when popularity of PayPal has increased hundred times. It is claimed to be the most secure system, but does have a number of limitations like a lack of physical office and long waiting times when it comes to claims handling.

 

Above is by no means a full list of existing payment options and you are free to use any you like. The most important thing is that you feel satisfied with your purchase!