The purpose of this blog post is not to pull out of my hat a miracle solution to increase ecommerce market share, I will try instead to look at ecommerce today and elaborate strategies to bring more people to buy online.

eCommerce share is 8% of all retail

eCommerce share is 8% of all retail

The state of affairs:

According to a survey by ComScore from 2011: ecommerce today represents about $142.5 billion, so about 8% of the entire retail business.  Forrester Research estimates that the United States online retail industry will be worth $279 billion in 2015.

The numbers are impressive but the share is still too small, given the effort that companies and manufacturers have been putting in bringing more business online in the past decade.

The question is how do we, in the industry, change these numbers? Why aren’t more people shopping online today? Can we increase share of online shopping by removing barriers preventing people from shopping online?

One of the main issues preventing people from shopping more online is TRUST. Trust here can be broken down in many categories, representing areas where consumers meet challenges:  Security, Privacy, pricing, product.

Security is key in eCommerce

Security is key in eCommerce

Trust in Security:

Shoppers want to know that their credit card information is secure when they make a purchase online. Most shopping sites uses SSL to insure that the transaction itself is secure, people understand this easily; most browsers will show a visual indicator near the address bar to notify the user that the site is secure.

We think the area where most people still have problem, when it come to their payment information being secure, is storage. How secure is my credit card if I buy from your site? A user one asked us.

It’s often reported on the news, that respected brand name companies had their system breached into. These breaches usually results in thousand of credit card information being compromise. Huge lost of confidence from customers.

Ecommerce still have a lot of work to do at this level. Thankfully rules and regulations on how to save and protect payment information exist in the form of PCI Compliance; See more details on PCI Compliance here .

More than the breach itself, the way companies communicates to customers after the fact matter a great deal. Openness and frank communication with users is the next necessary step when any breach occurs on a site.

Companies are not always comfortable being out front to report their failure to protect customer data. We think it’s part of the whole trust scenario, it’s critical that customer trust the companies who own their favorite shopping site to tell them the truth in case of issues. We think people understand when there’s a breach into system of a major company like Sony, that it is a break in, not an absolute failure to protect. That is why people still use Sony platform, customer understand that Sony will double efforts to protect their data. Over time trust grows back.

Not talking to customers in an open and truthful way as quickly as the breach occurs, send the wrong message to customers. It tells them that there’s more to say, it says that the company system is much more in trouble than it admits. This deepens mistrust in people confidence in ecommerce and impacts growth.

To grow ecommerce, companies need to tackle more aggressively system breach by applying rules and regulation on payment information storage (PCI DSS) and access. Additionally we must be quick and truthful in communicating with clients when a breach or unauthorized access occurs in the system.

What we do:

At TempCart, we thrive to protect all user data not just payment and financial data. We use a combination of technology from world trusted payment partners, encryption mechanism for sensitive data, Secure Socket Layer (SSL) for all web site transactions and a dedicated team to ensure that customer gets the best shopping experience. The customer is our first partner and gets the right of first to know.

TempCart customers love saving money!

TempCart customers love saving money!

To make reading on this subject more digestible to our readers, we will discuss the remaining trust issues in subsequent posts on this blog. Stay tune.

Next Post: How to grow ecommerce market share? Trust in privacy.

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