Building Confidence Online

Before going to restaurant, people will often check out the website to see what looks good on the menu, what specials may be offered that day and maybe even to make a reservation. Before going to a furniture store, people will look on the web to find good deals, coupons, and even save the trip to the store by purchasing the desired product online! More people are spending more money through ecommerce than ever before.

From 2001-2005 there has been an average increase in online spending of 26 percent per year, and from 2006 to 2009 there is a projected increase of 19% annually. In 2004, $82.3 billion was spent online as opposed to the overwhelming $143.2 billion dollars spent in 2005. Every minute wasted offline might result in another business transaction lost.

So why has consumer spending increased? What aspects of online purchasing have pushed consumers to be more confident in their purchasing?

The more often a consumer purchases online and has a satisfactory experience doing it, the more inclined they are to buy again; more experience results in more confidence. Secondly, when the consumer seeks to buy the product, the presence of Paypal on the site provides the consumer with added security. Assuming that the consumer has bought a product or service through Paypal before (or at least heard about it from friends and family), the consumer will feel safe using this service without having to purchase through the actual retailer.

In addition, services like Verisign and Authorize.net allow for increased trust in a company as well. Services like these ensure that the web-server is secure by means of encryption through a Secure Socket Layer (SSL). A user feels more confident when the consumer sees one of these companies’ symbols at the bottom of the web page.

Other aspects that the consumer faces are whether the retailer is trustworthy, the product they are purchasing is quality, and the price is the best around. To ensure a reliable retailer, a web-site should have testimonials, a history of the company, and a quality design. Instead of saying good things about one’s own company and patting his or herself on the back, testimonials from other companies or consumers bring much more credit to a company. The companies’ history provided somewhere on the site will also make a consumer feel more comfortable. An online store feels very distant, though a write up of the company’s history will provide a more personal setting in which to buy. And finally, a quality design is essential to a website because the website reflects the actual company. If there is a sloppy looking website with poor navigation, the consumer will lose faith in the company itself. Conversely, a quality one instills confidence.

As a product is uploaded online, the presentation of that product is also essential to a consumer’s confidence. The consumer often wants to see multiple views of the product as well as written information about it. A view of the image from just one angle makes the product seem boring and flat; however, displaying a few more pictures of the image makes the site more lifelike. The more information and pictures the consumer has of the product, the more inclined he or she is to buy. However, an inundation of information might overwhelm the shopper.

Most importantly, the consumer wants to know whether he is getting a good deal on the product or not. Though there are many, a good method for this is put the “retail price” and “our price” right next to each other (assuming that “our price” is at least slightly better than the “retail price”). Even though there might be better deals elsewhere on the internet, this contrast of prices makes the consumer feel confident in his or her purchase.

The bottom line is that ecommerce is growing at an astounding rate, and consumer confidence is growing with it. The decision to create a website, assuming it has the essential elements to a quality site, will certainly open the doors of possibilities for any business.

- By Mark Daiss of Atak Interactive, Inc.