January 11, 2007
Communicating with Customers is a Must for E-commerce Sites
According to a 2004 U.S. Census report about the state of e-commerce in America, retailer’s commercial activities grew by an amazing 25.2 percent, faster than any other economic sector and crushing even the most optimistic figures of economic growth when GDP peaked at 7.2 percent in October 2003 (CNN, 2003). However, a more sobering finding is that despite its 25.2 percent growth, the share of total retail sales via e-commerce grew at a modest 2 percent ($71 billion), up from 1.7 percent ($53 billion) in 2003. Notwithstanding these findings, there is money to be made in e-commerce (who wouldn’t want a piece of the $71 billion?) and no doubt that technological advances, internet connectivity, and increased comfort to buy online by consumers will contribute to the growth of e-commerce. One way of contributing to the comfort level for consumers to purchase online is to ensure that your customers and potential customers feel reasonably safe to navigate, register, and use their credit cards to make purchases. As a conscientious and lawful e-commerce merchant you have a responsibility to ensure that your customers’ privacy is protected.
Most e-commerce retailers have stepped up to combat online fraud. According to an article by Merchant Fraud Squad in About.com (2002) 72 percent of polled merchants reported fraud rates of less than .5 percent of annual revenues, while less than 20 percent reported fraud rates higher than 1 percent. These numbers are amazingly low despite the increased sophistication and aggressiveness of criminal elements that engage in spamming, phishing, and fraudulent credit card transactions.
If you are considering e-commerce or are in e-commerce, you might consider the following tips to help fight fraud and protect consumers:
- Be clear about your privacy policy.
Review your privacy policy and if you don’t have one, write one! Ask yourself the following questions: is my privacy policy as thorough and clear as possible? Am I committing myself to protecting customer’s information against fraud, unsolicited emails, or the transfer or selling off of customers’ information to third parties? Have I clearly stated how I will use customers’ information once I have it?
- Don’t get annoying
Do you want to keep customers and attract new ones? If you do, consider cleaning up your website by removing annoying pop-up windows, flashy ad banners, and visually painful cartoonish and sophomoric looking animations that make your website look less like legitimate e-commerce sites and more like a bad version of Cartoon Network.
- Publish an “About Us” page.
Write a short bio about your company, how it got started, and what it stands for. Write a mission statement which includes your business ethics (which can be tied to your privacy statement). Include, for example, a subheading such as “Why buy from us” and give persuasive reasons why potential customers should buy from you. You could include a short summary of warranty and return policy benefits, generous discount offers, security measures you have taken to protect customer’s privacy, and even naming the reputable companies you might be in business with to make your e-commerce possible. Here’s an example:
Secure Transaction:
We utilize Secure Sockets Layer (SSL) encryption protocol. SSL protects customer information such as credit card numbers, names, and addresses during the exchange between your computer and our server…
Our secure payments are backed by:
· PayQuake (FDIC insured), one of the premier online Merchant Account providers.
· Authorize.Net, the leading secure payment management company.
· Ipowerweb.com, one of the highest rated Internet Service Providers
· Equifax Secure Inc. (a subsidiary of GeoTrust, Inc., a leader in trust solutions for the Internet security infrastructure). Simply click on the lock symbol on your browser to view the certificate.
(Source: www.oceanusgifts.com/about.php)
- Clearly publish your warranty and return policies
Ethical and honest e-commerce sites will clearly publish reasonable return and warranty policies. Don’t be so restrictive that it becomes a disincentive for potential customers to buy products or services. Be thorough and direct but not so wordy that people won’t read your policies. Be mindful of the tone and language that you use to write your guidelines by not coming off as preachy, condescending, or patronizing. Avoid CAPPING words (rubs off the wrong way and it usually gets interpreted as yelling). Do not overuse exclamation marks (!) (in fact avoid exclamation marks altogether).
- Invest in SSL certificates
Take reasonable steps to secure your site with SSL certificates. There are reasonably priced certificates out there that will not break the bank. Make sure that SSL certificates are up-to-date.
While these tips might not be all-inclusive, they provide starting points for developing policies and standards that clearly portray your intentions as a retailer. Your potential for economic success will be improved with these tips because they will help to create a safe and pleasant online environment for your visitors.
References
About.com (2002). E-merchants are successfully fighting fraud despite rising sophistication of fraudsters. Retrieved on January 11, 2007 from: http://retailindustry.about.com/library/bl/02q2/bl_mfs061702.htm
CNN. (2003, October 30). U.S. economic growth sizzles: Third-quarter growth of 7.2 percent is strongest in nearly two decades; will job growth follow? Retrieved on January 11, 2006 from:
http://money.cnn.com/2003/10/30/news/economy/gdp/index.htm
U.S. Census. (2004). E-Stats. Retrieved on January 11, 2007 from: http://www.census.gov/eos/www/papers/help 2004/2004reportfinal.pdf