Globally, traditional retailers are facing competition from virtual stores.  Ernst and Young in its 2001 Annual Global Online Retailing Report, projected that online shopping would account for 10 to 12 per cent of all sales in apparel, health, and beauty; and as much as 25 per cent of all sales for books, music, software, and consumer electronics by 2005.  In Jamaica, Internet usage represents a small five per cent of the population.

But with government-pushed plans to equip schools with technology, and Internet costs set to decline with the full liberalisation of the telecommunications market - high speed Internet costs are expected to dip 70 per cent within two years when new fibre-optic links are commissioned - local usage is expected to increase.

As the Internet grows, and its benefits expand, so does the potential for exploiting the unsuspecting.

The negative aspects of online shopping are becoming more frequently associated with the service.  Consumers are worried, for example, about credit card security and the disclosure of personal information.

There is the concern too about purchasing products from 'faceless' sellers without physically examining the products.

Therefore, it is assumed that people may feel a certain degree of risk when purchasing a product through the Internet.  In other words, consumers may worry about the performance of the product they are trying to purchase, the possible loss of their time or money, or even other people's judgments about their purchase, until they finally confirm the quality of the product.

Here are some precautions to take when shopping online:

1. Know your vendor: You can check on the company's reputation with the Better Business Bureau found online at www.bbb.org. This is an especially good idea if you learned about the company from an unsolicited e-mail message.  Verify whether the vendor is registered overseas because you might not have the same legal protections with overseas companies.

2. Protect your privacy: Web sellers often collect information about you to share with other companies, so you can get bombarded with sales information you don't want.

You can reduce the risk of unsolicited sales pitches by purchasing from vendors who post their privacy policies and offer you options about use of personal information.  In most cases, a vendor need only your password, credit card number and shipping information.  Never give anyone your credit card details via email.

3. Pay with a credit card: Other payment options don't offer the same consumer protections.  If the product does not arrive on time or if you are not satisfied, you can dispute your vendor's charges.  You are also protected from unauthorised credit card charges.  US federal law limits buyer liability for unauthorised charges to $50.

To confirm that you are on a secure server, look for an unbroken key or padlock at the bottom of your browser window.  These symbols mean the information you send is encrypted.  Paypal is an excellent way to make secure payments online.

4. Check delivery dates: Vendors usually tell you when to expect your merchandise when you place the order.  Sellers must ship items no more than 30 days after the order date.  If the seller cannot ship the goods by then, you should be given a chance to cancel and receive a full refund.

5. Check shipping and handling fees: Be sure to designate the delivery mode you prefer, or the vendor may decide for you.  Many retailers base their shipping fees on the price of the item or the weight of the goods.

6. Track your purchases: Print out and file any records related to online purchases.  Save a printout of the web pages with the seller's name, address, phone number, a description of what you ordered, and any email messages to or from the seller.

These documents can be your insurance policy in case you don't receive your order or you receive the wrong shipment.  Companies like Fedex and DHL, for example, employ tracking systems, giving you the ability to trace your shipment from dispatch to delivery.

http://www.jamaicaobserver.com/magazines/Business/html/20050115T210000-0500_73245_OBS_SIX_SECURITY_TIPS_FOR_SHOPPING_ONLINE.asp