Smart Shopping
Potentials and Perils of Online Shopping
What are the benefits? Greater convenience and access to more information are the main benefits of Internet shopping. Shoppers need go no further than the personal computer in their den or public library. Extensive information about product features, product comparisons and pricing is at your fingertips. Listed below are a few of the benefits.- Save time - Avoid traveling to and from stores.
- Save money - Products can often be purchased for less. Some prices are lower, some retailers will pay shipping and some purchases avoid sales taxes.
- Ease of comparison shopping - A few clicks of the mouse displays product features, colors and prices of similar items from a variety of merchants.
- Large selection - Hundreds of thousands of items are available. It's difficult to find products you can't purchase online.
- Simplify gift-giving - It's easy to buy and send gifts. Simply select a gift, enter a delivery address and provide payment information.
- No crowds!
What are the dangers? Most online shoppers have concerns about privacy and security. By its nature, the Internet disseminates information very easily - even information you prefer to keep private. Major advances have been made to protect your privacy on the Internet. On the following page are a few tips to ease some of your concerns.
Tips to Protect Your Privacy
- Check for a secure server - A secure server scrambles or encrypts personal information to keep others from using it. When connected to a secure server, most browsers (like Netscape or Internet Explorer) will show a closed padlock at the bottom of your computer screen and will switch from http to https.
- Passwords offer extra security - The most secure sites will have you create an online account with an account name and password. Keep this information private, change passwords periodically and use different passwords for different sites.
- Consider the seller's reputation - Well-known and respected retailers tend to have more secure Web sites than smaller companies. These companies are also less likely to engage in fraud.
- Look for a privacy statement - Every Web site that lets you make purchases should have a statement that describes the steps they take to promote privacy and security. Read the privacy statement to learn if your information will be sold or given out.
- Understand how the cookie crumbles! - Many merchants will want to place a "cookie" on your computer. Cookies are small files that identify you to the merchant. They may allow companies to collect marketing information about you and the Web pages you visit. You may not wish to share this information. Most browsers allow you to turn off the cookie function.
For more information about online shopping see:
Authors: John Bullock, Consumer Economics and Finance student and Michael R. Ward, Assistant Professor, Department of Agricultural and Consumer Economics, University of Illinois at Urbana-Champaign.
February 2000; Reviewd November 2003
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Consumer and Family Economics
Department of Agricultural and
Consumer Economics
University of Illinois
Extension
University of Illinois Urbana-Champaign