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buySAFE Survey Reveals Online Holiday Shoppers Concerned Over More Than Just Identity Theft and Credit Card Fraud
Fear of non-delivery, getting a different product than ordered, equally distressing — especially when buying from smaller online retailers
ARLINGTON, Va. (November 20, 2006)—On the brink of Black Friday – the biggest shopping day of the year - identity theft and credit card fraud are not the only issues causing consumers to abandon their online shopping carts this holiday season. A recent survey by online trust and safety company buySAFE, Inc. (www.buysafe.com) and online market research service Insight Express revealed that respondents are almost equally concerned with the possibility of non-delivery or receiving something different than promised. These concerns – along with concerns about the trustworthiness of the retailer, quality of merchandise, and shipping costs -- are amplified when shoppers are considering buying from smaller, independent online retailers.
The survey found that approximately 1 in 3 respondents (33%) have abandoned an online transaction with an unfamiliar merchant due to concern over getting something different than what was promised, and 29% said they’ve ended their transaction due to concerns over non-delivery (the item never arriving). Combined, these two concerns reflect a high level of concern among online shoppers over merchant non-performance risk. The rates of shopping cart abandonment due to merchant non-performance concerns is nearly on par with concerns over identity theft (37%) and credit card fraud (40%).
“The hot topic in e-commerce is ID theft and credit card fraud, but our research found that online shoppers have other, equally-important concerns such as merchant non-performance. These concerns are magnified when buying from a merchant the shopper knows little about,” said Jeff Grass, CEO of buySAFE. “The most successful merchants this holiday shopping season will be the ones that can create a trusted experience that makes shoppers comfortable buying from them.”
Other key findings of the survey of online shoppers include:
- 35% of respondents feel unsafe buying from a less well-known retailer
- Trustworthiness and price ranked as the top two considerations for respondents in choosing whether to buy from an online merchant
- 30% of respondents shop online most often at large, well-known retail sites; 43% shop most often at auctions and marketplaces, while 27% shop most often at smaller, independent retailers
- 32% of respondents would spend a greater percentage of their holiday shopping budget online if they had greater trust in the retailer
- 76% would purchase more frequently from independent online retailers if there was a way to guarantee every online purchase (i.e., you get what you bought or get your money back)
Between November 3–13, 2006, 1,000 interviews were completed online among a sample of respondents age 18+. While participating in the ten-minute survey, respondents completed a series of questions pertaining to their intended online shopping habits for the upcoming holiday season and their perceived level of security associated with online purchasing.
About buySAFE
buySAFE, Inc. is the leading trust and safety company for e-commerce transactions. buySAFE qualifies merchants, identifies reputable online businesses with the buySAFE Seal, and uses surety bonds to provide broad protection for individual buyers from online transaction risks. The buySAFE bond is backed by Liberty Mutual, Travelers, and ACE USA for up to $25,000, and boosts consumer confidence for lesser-known online retailers, allowing them to compete with the big, established brands. buySAFE has issued more than 9.5 million surety bonds on individual online purchases. There are currently more than two million items bonded with buySAFE that can be found at www.buysafeshopping.com. buySAFE is headquartered in Arlington, Virginia. More information can be found at www.buysafe.com.
About Insight Express
InsightExpress is an acknowledged pioneer of rapid turnaround, high-quality, online marketing research services. With its patented technology, market research expertise, and access to more than 100 million online individuals, InsightExpress enables its clients to easily harness market research to make the right business decision in real-time. The company is headquartered in Stamford, CT, and maintains offices in New York, Los Angeles, and San Francisco. InsightExpress is affiliated with General Atlantic LLC. For more information, visit www.insightexpress.com or contact at 203-406-3233.
