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f you had a complaint against a retailer and hadn't gotten satisfaction, whom would you turn
to? If you're like most consumers, you'd probably call the Better Business Bureau (BBB).
But these days, chances are you're shopping online, and estimates say you have plenty of company. According to the U.S. Commerce Department, online retail sales totaled an unadjusted $5.3 billion in the fourth quarter of 1999. And that doesn't even include an estimated $3.5 billion spent on services such as travel or event tickets. This means you could be stuck with a problem but no one to talk to. |
Shopping list for consumers |
When creating a password, avoid using established numbers. |
Better Business Bureau
The Council of Better Business Bureaus (CBBB), the umbrella group for BBBs throughout the U.S., established an online version of the BBB to service transactions taking place over the Internet (BBBOnline). According to Holly Cherico, public information officer of the BBBOnLine, "When the electronic marketplace began to emerge in the mid-'90s, the business community, consumer groups, and government regulators saw a need for an 'online' BBB to help make this new marketplace successful. Scam artists are always the first to take advantage of a new technology [such as telemarketing], and we were asked by regulators and responsible businesses to help establish consumer trust and confidence in the e-marketplace by playing a role in the online environment." Overall, Cherico says, online shopping experiences are positive, but as more and more people log on, the need for a watchdog increases. She says consumers can feel the same confidence when they see a BBB logo on a retailer's home page as they can when they see a sticker in a traditional retailer's window. It indicates that that e-retailer has agreed to adhere to the same BBB standards for customer satisfaction. |
BizRate
The BBB is not the only company to realize consumers' need for positive e-retail experiences. BizRate.com is a company that rates e-retailers, using peer reviews to form report cards for BizRate merchandisers (such as FAO Schwarz, Amazon.com) and those that are not (such as the Gap, JCPenney). Featured in Consumer Reports, BizRate.com uses online surveys to rate customer satisfaction for thousands of online stores. Its logo appears on the home page of more than 3,600 e-retailers and it continuously solicits customer feedback. Say, for example, you're looking for a toy but want to use a reputable retailer. Like those companies that have signed up with the BBB, e-retailers displaying the BizRate logo have agreed to comply with certain customer satisfaction standards. You could visit the BizRate site and search by item or store and pull up a report card on an e-retailer you're interested in patronizing. If you decide to shop at SmarterKids.com, you'd click and get a full five-star review, plus a synopsis including customer comments. Here is an example: Performance ReviewSmarterKids.com, Score: 98BizRate accepts no advertising and earns its revenue through market research. "We query millions of customers at the point of sale every day," says Tran Vu, BizRate spokesperson. "We have a panel of 100,000 shoppers who review sites and rate them on items including ease of ordering, product selection, price, on-time delivery, [and] customer support," among others. BizRate sends e-mail queries two to five days after expected delivery dates to confirm that items arrive on time. According to BizRate, the system "aggregates information and empowers online buyers to make more educated purchasing decisions based on feedback from fellow consumers." It then provides online stores with specific feedback from their online buyers, which is how it benefits online companies that display the BizRate seal. Consumer Reports Online also offers an online shopping guide, providing exclusive shopping site reviews for subscribers to the Web site, which costs $3.95 per month. Like BizRate, Consumer Reports does not accept advertising from any company, whether or not they are reviewed online. |
Ask the company for its physical location so you can check on its reliability. |
Look for the prefix "https://" in the URL (uniform resource locator) box. |
Privacy watchdogs
Privacy is another issue with online shoppers, and just as there are retail watchdogs, there also are e-companies that ensure that your transactions are safe. Look for logos like the BBBOnLine Privacy Seal, implemented in 1999, or the TrustE logo, implemented in 1996, to ensure that e-retailers are complying with privacy practices that keep consumers' best interests in mind. According to the CBBB, Web sites displaying the BBBOnLine Privacy seal have established privacy policies to protect consumers. As part of the BBBOnLine privacy policy, businesses must
Some search engines, such as Yahoo! and Netscape offer a selection of stores from which to shop, and these search engines take their reputations seriously. Go to the shopping sections of any major search engine and you will find extensive privacy policies that have been implemented to ensure your protection. So if e-retailers are trying so hard, why do we need protection agencies? The BBB's Cherico says the most common complaints filed against online merchants are about misleading advertising, nondelivery of goods or services (remember last year's Christmas disappointments?), guarantees that are not honored, unsatisfactory service, and credit or billing problems. She offers a list of red flags consumers can look for when shopping. Also check out the BBB site for a more detailed list, and happy shopping! Enjoy the cyberspace mall. |
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© 2000 Credit Union National Association Inc. |