Log in to your IBTimes Account

close
ID
Password

Internet shopping rising despite economic downturn



By Jonathan Ong
17 November 2009 @ 09:46 am AEST

The Organisation for Economic Cooperation and Development (OECD) believes the internet supermarket is booming because people and businesses are looking for bargains and new outlets in bad times.

The report also found that the financial crisis had been a blessing in disguise for electronic commerce, with sales rising in Europe, the United States and China at a time when the store-based retail sector struggles as consumers' disposable income shrivels.

"The financial and economic crisis appears to be giving a e-commerce a boost as consumers search for ways to reduce expenditures by purchasing items online," the OECD said, adding: "The savings can be substantial."

The OECD suggests that the positive growth of internet shopping can only continue with the rapid expansion of the mobile phone market and the participation of Chinese businesses, which in turn encourages advertisers to join in as well.

However, the growth of shopping is still being held back by concerns over privacy of personal information, language problems, delivery costs and taxation and regulation barriers. The OECD also highlights other worries for consumers like product defects, delivery failures and credit card frauds.

"Delivery problems and dissatisfaction with the products purchased were the leading reasons for the complaints, accounting for 75 percent of the total," the OECD said.

The OECD says that shoppers in Britain, Germany and France can save 17 percent by buying electronics goods, DVDs and clothing on online trading platforms rather than in physical stores while in the United States, on-line sales for 80 retailers jumped an average of 11 percent in the first quarter of the year.

This article is copyrighted by Ibtimes.com.au.

    Click!
  • Rate this article:

Comments

Post Your Comment

*Name

  • International Business Times Secutiry Check

advertisement
advertisement
 
IBTimes.com Web
Partners
International Business Times© Copyright 2013 International Business Times. Terms of service | Privacy Policy | Advertising | About Us | Contact Us | Archives