Shoppers still afraid of online stores

 

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By Asavin Wattanajantra

Posted on 11 May 2009 at 16:33

A report from the Office of Fair Trading (OFT) claims a third of internet users still won't shop online, with a lack of trust cited as the biggest reason.

Of those who refuse to shop online, 20% claimed that it was because they didn't believe the transaction would be secure. A further 15% simply claimed to have no faith in online retailers.

Even those who do shop online claimed to have misgivings, with around 75% of those interviewed claiming to be worried they'd opened themselves up to identity theft and fraud.

Despite the findings, the OFT believes consumer confidence is improving, with 54% of respondents saying shopping online was as safe as shopping in a store - a rise of 26% from 2006.

The study also revealed that customers are savvier when it comes to their rights online than they were. The number of internet shoppers who understand they can return items, even if they're not damaged, has risen from 44% in 2006 to 51% in 2009.

However, the OFT is warning that online shopping will never reach its full potential until customers are more confident in the system.

"Online retailing is the future for many businesses and increasingly important to the economy," says OFT chief executive John Fingleton in a statement. "If consumers are not confident online, demand will grow at a slower rate. So we must tackle these concerns right now if the online market is to grow at its full potential."