Retailers ask for help with online crime

Could the things you buy via eBay be stolen? At a hearing of the House Judiciary Committee's subcommittee on crime, terrorism and homeland security, retailers asked Congress to require Internet auction sites to share information on high-volume sellers. The merchants say that criminals steal large amounts of a product and then sell it online. Popular items stolen include over-the-counter drugs and personal care items from drug and grocery stores, and clothes, gift cards and electronics from other stores. The items are then resold on eBay and other sites or in local flea markets. Tim Hammonds, president and chief executive officer of the Food Marketing Institute, says that the gangs of thieves steal up to $30 billion in merchandise a year. 

The concern for consumers isn't just the ethics of buying stolen goods. Products that are temperature or safety-sensitive such as infant formula or cold medicines may not be stored properly, which could cause health risks for the buyers of these items.

One possible solution being floated is to require sellers to post the serial numbers of items for sale, much as sellers of cars post vehicle identification numbers. Experts worry however, that thieves would just make up numbers. Another idea is to make high-volume sellers offer more information about themselves such as their names, addresses and telephone numbers on product listings, but sellers are often reticent to make than type of information public. Retailers say that to them what is most important is that the auction websites work with their investigators, not just law enforcement, to help curb these crimes.

Retailer websites getting summer makeovers

Perhaps as a response to the statistics showing that online shopping is slowing, several major retailers including Victoria's Secret Direct, Linens 'n Things, Aerosoles and Edwards Luggage are sprucing up their websites this summer adding enhanced functionality that embraces Web 2.0 concepts of interactivity.

They're not alone. The RIS Retail Technology Study reveals that over half of retailers upgrading their web sites over the next two years are seeking to make sites more interactive and easy to use. Some of the improvements that online retailers are looking at include more logical search and navigation, finely tuned recommendations, product comparisons and reviews, live chat and the formation of social communities.  The new Aerosoles site for example, will include advanced shoe imaging and photo manipulation control and specialized search and navigation designed specifically for shoe inventory. Customer satisfaction on the web is also important to these retailers. Ace Hardware's website measures the satisfaction of customers both when they are browsing the site and after they have bought a product. They can use this information to help make changes on the website. Like the upgrades that take place in traditional bricks-and-mortar stores, what matters most is that the shopper has a pleasant experience and comes back again.

How to buy and sell more safely on eBay

Just about everyone I know has bought something on eBay at one time or another. But there are pitfalls to the system, and almost half of eBay buyers surveyed by the Consumer Reports National Research Center said they’d encountered deceptions. This month we have taken an in-depth look at the most popular auction service along with some tips to help avoid eBay problems.

When we recently asked more than 2,500 subscribers to ConsumerReports.org about eBay purchases in the past year, they told us that the most important step in eBay purchasing is to check the seller’s percentage of positive feedback. Matt Halprin, eBay’s vice president of global trust and safety policy, recommends trading with members who have a high positive feedback score. You should be looking for at least a 99 percent rating. Another way to protect yourself is to check whether the seller has changed identities. If the user’s ID has changed within the past 30 days, an icon will appear on the listing page. You can also check earlier switching by looking at the seller info. Click on the feedback score, then on More Options and View ID History and any past names used on eBay will appear. Also checking out what the seller has sold in the past and verifying the seller's email, physical address or phone number can help. A seller who is vague or does not respond should be avoided.

If you are shopping for a particular item, especially a collectible, it helps to do your homework. Check out comparison shopping websites to see whether the price the seller is listing is in the item's typical price range. This can also help you avoid counterfeit items as designer goods selling at low discount prices can often be fakes. Doing the research ahead of time allows you to confidently establish your top price so that you don't get caught in a bidding war. Using proxy bidding, in which you place your maximum bid and your bid is bumped up each time, can help you stick to your budget.

Our guide to eBay also includes advice on avoiding counterfeit merchandise and tips for selling on eBay that will help you avoid some of the common problems some sellers encounter. After all, just about everyone I know who started off as an eBay buyer also turned into an eBay seller at some point.

Online shopping growth slowing

Over the past few years it seemed like the sky was the limit when it came to online shopping. Each the numbers grew and grew as more people discovered the joys of click and spend. But recent data indicates that online commerce has slowed in some key categories such as books, office supplies, beauty products and computer peripherals. Analysts say the trend is here to stay and point to the recent decision by Dell to sell PCs at Wal-Mart stores as a sign that selling online is no longer as successful as it once was.

The numbers for Internet sales are still impressive, and are expected to reach $116 billion this year, but that's still just 5% of all retail sales. The threat of online sales has caused retail stores to step up their game, making stores brighter and more fun to shop in. Online fatigue has also set in; some shoppers queried tend to view shopping online as being more of a task and less of a pleasure or stress reliever the way that in-person shopping is for some people. Because online shopping takes place on a computer it can often seem like work, while an afternoon in the mall is seen as recreation.

The future of online shopping may lie in what is known as the hybrid model, the combination of being able to buy online and pick up the goods at the store. Many of the big box stores now have this sort of service. Consumers are also adopting a bit of a hybrid shopping strategy, deciding to buy some things online and others in person. Unless online retailers  make virtual browsing more enticing, the division between online shopping and  in-store shopping will remain one in which the more mundane shopping chores are relegated to the computer and the shop-for-fun moments will continue to take place in person.

See also: ShopSmart's complete guide to online shopping