Online Shopping Tips: E-Commerce and You

With just a click of the mouse, shoppers can buy nearly any product online – from groceries to cars, from insurance policies to home loans. The world of electronic commerce, also known as e-commerce, enables consumers to shop at thousands of online stores and pay for their purchases without leaving the comfort of home. For many, the Internet has taken the place of Saturday afternoon window shopping at the mall.

These consumers expect merchants to not only make their products available on the Web but to make payments a simple and secure process. However, the same things can go wrong shopping in cyberspace as in the real world. Sometimes it is simply a case of a computer glitch or poor customer service. Other times, shoppers are cheated by clever scam artists.

A survey by AC Nielsen found that the top security concerns of America’s online shoppers were:

• Not receiving the items purchased, or receiving items different from what was described.
  
• Email addresses being sold to third parties.
  
• Fears about personal or financial information being stolen.
  
• Email scams known as “phishing” or “spoofing” in which consumers receive messages from dishonest sources disguised as messages from trusted retailers or financial institutions.

Just as shoppers should take measures to protect themselves in brick-and-mortar stores—such as protecting their PIN numbers when checking out and not leaving purses unattended—online shoppers also need to take sensible precautions. This guide offers advice on how to make your online shopping experiences enjoyable and safe.

1. Shop at Secure Web Sites

How can you tell if a web site is secure? It uses encryption technology to transfer information from your computer to the online merchant’s computer. Encryption scrambles the information you send, such as your credit card number, in order to prevent computer hackers from obtaining it en route. The only people who can unscramble the code are those with legitimate access.

You can tell when you are dealing with a secure web site in several ways.

• First, look at the top of your screen where the web site address is displayed. You should see https://. The “s” that is displayed after “http” indicates that web site is secure. Often, you do not see the “s” until you actually move to the order page on the web site.

• Another way to determine if a web site is secure is to look for a closed padlock displayed at the bottom of your screen. If that lock is open, you should assume it is not a secure site.

• The third symbol that indicates you are on a secure site is an unbroken key.

Of course, transmitting your data over secure channels is of little value to you if the merchant stores the data unscrambled. Try to find out if the merchant stores the data in encrypted form. If a hacker is able to intrude, he or she cannot obtain your credit data and other personal information if the stored data is scrambled. Be sure to read the merchant’s privacy and security policies to learn how it safeguards your personal data on its computers. (See Tip 3 below.)

2. Research the Web Site before You Order

Do business with companies you already know. If the company is unfamiliar, do your homework before buying its products. If you decide to buy something from an unknown company, start out with an inexpensive order to learn if the company is trustworthy.

Reliable companies should advertise their physical business address and at least one phone number, either a customer service or an order line. Call the phone number and ask questions to determine if the business is legitimate. Even if you call after hours, many companies have a “live” answering service, especially if they don’t want to miss orders. Ask how the merchant handles returned merchandise and complaints. Find out if it offers full refunds or only store credits.

You can also research a company in Internet yellow pages, through the Better Business Bureau (see listing below), or a government consumer-protection agency like the district attorney’s office or the Attorney General. Perhaps friends or family members who live in the city listed can verify the validity of the company. Remember, anyone can create a web site.

3. Read the Web Site’s Privacy and Security Policies

Every reputable e-commerce web site offers information about how it processes your order. It is usually listed in the section entitled “Privacy Policy.” You can find out if the merchant intends to share your information with a third party or affiliate company. Do they require these companies to refrain from marketing to their customers? If not, you can expect to receive “spam” (unsolicited e-mail) and even mail or phone solicitations from these companies.

You can also learn what type of information is gathered by the web site, and how it is — or is not — shared with others. The online merchant’s data security practices are also often explained in the Privacy Policy, or perhaps a separate Security Policy.

Look for online merchants who are members of a seal-of-approval program that sets voluntary guidelines for privacy-related practices, such as TRUSTe (www.truste.org), Verisign (www.verisign.com), or BBBonline (www.bbbonline.org).

However, be aware that a strong privacy policy and membership in a web-seal program don’t guarantee that the web merchant will protect your privacy for all time. Policies can change. The company can file for bankruptcy and sell its customer data base. The web merchant might be purchased by another company with a weaker privacy policy. And the company’s data can be subpoenaed for law enforcement investigations or civil cases. You have little control over the use of your customer data in such matters.

Given all of these uncertainties, you will want to think about the sensitivity of the data that is being compiled about you when you shop online. We cannot prescribe the best approach to take. Each consumer has a different interpretation of what is considered “sensitive.”

4. What’s Safest: Credit Cards, Debit Cards, Cash, or Checks?

The safest way to shop on the Internet is with a credit card. If something goes wrong, you’re protected under the federal Fair Credit Billing Act. You have the right to dispute charges on your credit card, and you can withhold payments during a creditor investigation. If it’s determined that your credit was used without authorization, you are responsible only for the first $50 in charges. You are rarely asked to pay this charge. We recommend that you obtain one credit card that you use only for online payments to make it easier to detect wrongful credit charges.

E-commerce shopping by check leaves you vulnerable to bank fraud. And sending a cashier’s check or money order doesn’t give you any protection if you have problems with the purchase.

Make sure your credit card is a true credit card and not a debit card, a check card, or an ATM card. As with checks, a debit card exposes your bank account to thieves. Your checking account could be wiped out in minutes. Further, debit and ATM cards are not protected by federal law to the extent that credit cards are.

5. Never Give Out Your Social Security Number

Providing your Social Security number is not a requirement for placing an order at an e-commerce web site. There is no need for the merchant to ask for it. Giving out your Social Security number could lead to having your identity stolen. (See PRC Fact Sheet 17, “Coping with Identity Theft,” www.privacyrights.org/fs/fs17-it.htm.)

6. Disclose Only the Bare Facts When You Order

When placing an order, there is certain information that you must provide to the web merchant, such as your name and address. Often, a merchant will try to obtain more information about you. It may ask questions about your leisure lifestyle or annual income. This information is used to target you for marketing purposes. It can lead to “spam” or even direct mail and telephone solicitations.

Don’t answer any question you feel isn’t required to process your order. Often, the web site will mark which questions need to be answered with an asterisk (*). Should a company require information you’re not comfortable sharing, leave the site and find a different company for the product you seek.

7. Keep Your Password Private

Most reputable e-commerce web sites require the shopper to log-in before placing or viewing an order. The shopper is usually required to provide a username and a password. Never reveal your password to anyone. When selecting a password, do not use commonly known information, such as your birthdate, mother’s maiden name, or numbers from your driver’s license or Social Security number. Do not reuse the same password for other sites. The best password has at least eight characters and includes numbers and letters.

8. Check the Web Site Address

Above the web site at the top of your screen is a rectangular window that contains the web site address (also called the URL, or Uniform Resource Locator). By checking that address, you can make sure that you are dealing with the correct company.

Don’t click on any link embedded within a potentially suspicious email. Instead, start a new Internet session from the beginning by typing in the link’s URL into the address bar and pressing “Enter” to be sure you’re directed to a legitimate web site.

Identity thieves send massive numbers of emails to Internet users that ask them to update the account information for their banks, credit cards, online payment service, or popular shopping sites. The email may state that your account information has expired, been compromised or lost and that you need to immediately resend it to the company.

Some emails sent as part of such “phishing” expeditions often contain links to official-looking web pages. Other times the emails ask the consumer to download and submit an electronic form. As many as five percent of recipients respond to them, becoming victims of financial loss, identity theft, and other crimes.

Remember, legitimate businesses don’t ask for sensitive information via email. Don’t respond to any request for financial information that comes to you in an email. Again, don’t click on any link embedded within a suspicious email, and always call the retailer or financial institution to verify your account status before divulging any information.

9. Always Print Copies of Your Orders

After placing an order online, you should receive a confirmation page that reviews your entire order. Itshould include the costs of the order, your customer information, product information, and the confirmation number.

We recommend you print out at least one copy of the web page(s) describing the item you ordered as well as the page showing company name, postal address, phone number, and legal terms, including return policy. Keep it for your own records for at least the period covered by the return/warranty policy.

Often you will also receive a confirmation message that is e-mailed to you by the merchant. Be sure to save and/or print this message as well as any other e-mail correspondence with the company.

10. Shop with U.S. Companies

When you shop within the United States, you are protected by state and federal consumer laws. You might not get the same protection if you place an order with a company in another country.

11. Pay Attention to Shipping Facts

Under the law, a company must ship your order within the time stated in its ad. If no time frame is stated, the merchant must ship the product in 30 days or give you an “Option Notice.” This gives you an opportunity to cancel the order and receive a prompt refund, or agree to the delay.

Here are they key shipping issues:

• Does the site tell you if there are geographic or other restrictions on delivery?
• Are there choices for shipping?
• Who pays the shipping cost?
• What does the site say about shipping insurance?
• What are the shipping and handling fees, and are they reasonable?

12. Learn the Merchant’s Cancellation, Return and Complaint-Handling Policies

Even under the best of circumstances, shoppers sometimes need to return merchandise. Check the web site for cancellation and return policies.

• Who pays for shipping?
• Is there a time limit or other restrictions on returns or cancellations?
• Is there a restocking charge if you need to cancel or return the order?
• Do you get a store credit, or will the company fully refund your charges to your credit card? If the merchant only offers store credits, find out the time restriction for using this credit.

Don’t expect less customer service just because a company operates over the Internet. This is especially important if you are buying something that may need to be cleaned or serviced on occasion.

• Does the merchant post a phone number and/or e-mail address for complaints?
• How long has the company been in business?
• Will they still be around when you need them?
• Is there an easy, local way for you to get repairs or service?
• Is there a warranty on the product, and who honors that guarantee?
• What are the limits, and under what circumstances can you exercise your warranty rights?

13. Use Shopper’s Intuition

Look at the site with a critical eye. And heed the old adage, “If it looks too good to be true, it probably is.”

• Are there extraordinary claims that you question?
• Do the company’s prices seem unusually low?
• Does it look like the merchant is an amateur?
• Are there a lot of spelling or grammar errors?
• Does the company’s phone go unanswered.
• The use of a post office box might not send up a red flag, but a merchant who does not also provide the company’s physical address might be cause for concern.

If any of these questions trigger a warning bell in your head, you will be wise to find another online merchant.

14. Be Wary of Identity Theft

As e-commerce becomes more common, there will be more cases of identity theft committed over the Internet. Imposters are likely to obtain their victims’ identifying information using low-tech means like dumpster diving, mail theft, or workplace access to SSNs. But they are increasingly using the web to apply for new credit cards and to purchase goods and services in their victims’ names.

The same advice for avoiding low-tech identity theft applies to shopping on the Internet. Many are mentioned in the above tips. Most important: Be aware of who you are buying from. And use true credit cards for purchases, not debit cards.

We recommend that you check your credit card bills carefully for several months after purchasing on the Internet. Look for purchases you did not make. If you find some, immediately contact the credit card company and file a dispute claim.

Order your credit reports at least once a year and check for accounts that have been opened without your permission. (See PRC Fact Sheet 17a , “Identity Theft: What to Do if It Happens to You,” www.privacyrights.org/fs/fs17a.htm .)

15. Consider Using Single-use Card Numbers

Consumers using some brands of credit cards can get “virtual credit cards,” or single-use card numbers, that can be used at an online store. The randomly generated substitute 16-digit number can also be used to buy goods and services over the phone and through the mail but can’t be used for in-store purchases that require a traditional plastic card.

With this free service, you never need to give out your real credit card number online. Among the card companies offering it are Citibank and the Discover card.

16. Be Cautious with “Electronic Signatures”

A recent federal law enables shoppers to verify online purchases with merchants using an “electronic signature.” Usually, this process is nothing more than clicking on a box that says you accept the terms of the order.

The Electronic Signatures in Global and National Commerce Act, also known as the E-Sign Act, is a complex law. It states that electronic signatures and electronic records used in interstate and foreign commerce will not be denied validity just because they are in electronic form. Further, the law says that online purchases do not need to be accompanied by the more traditional handwritten signature on a paper document.

Consumer advocates opposed the law because it lacks important safeguard against fraud. For example, the law does not require online merchants to comply with such standards as message integrity (security and accuracy in transmission), privacy of customer data, and authentication of sender.

The faults of the E-Sign Act require you to shop cautiously on the Internet. The tips offered in this guide will help you make sure the online companies you choose are secure and honest.

General Shopping Tips

1. Before you buy something, ask yourself these questions:
---Can I live without this?
---Do I need it? Or merely want it?
---Do I already have something I can use instead?
---Can I borrow it from a friend or family member?
---How long will I have to work to pay for this?


2. To avoid impulse buys, imagine having to clean the item, or store it.


3. If you can, avoid the middleman.


4. If you need a ruler when you're out shopping, remember this: a dollar bill is 6 1/8" long.


5. Make it instead of buying it.


6. Substitute with what you already have.


7. Make sure you wear out what you already have.


8. Make sure you use up what you already have.


9. Stockpile when items are on sale.


10. Buy in bulk when it saves money.


11. Learn the sales patterns at your favorite stores.


12. Use generic when possible.


13. Shop at thrift stores, even food (i.e. bakery) thrift stores!


14. Buy merchandise with the best unit pricing. Bigger or smaller does not mean cheaper.


15. Avoid anything disposable.


16. Shop alone if at all possible.


17. Always check out the discount or clearance racks/bins.


18. Know your merchandise: buying poor quality at any price is never a bargain!


19. Why Buy? Use the 5 R's instead
---Repair
---Restore
---Reduce
---Reuse
---Recycle
Use "5 R's" for yourself, your loved ones and business.


20. Buy with cash only, not credit.


21. Watch for local motels/hotels selling furnishings when they remodel. This goes for other businesses as well.


22. Many stores have the policy to match their competitor's prices. If you see something in the newspaper that you want, but don't want to travel to that particular store to get it, cut the advertisement out and take it to your local store.


23. Make a price book, and frequently refer to it. Click here for more information about price books.


24. Use coupons if you have them. Remember to bring them along!


25. Send off for rebates to get items free, or nearly free!


26. Always ask for a raincheck. While you are waiting for the product to come back in, look for more of the coupons on that product.


27. Shop the Sales! Obtain newspaper advertisements and sales flyers for the stores you frequent; compare prices of sale items.


28. Check for "multi-purchase" discounts, or Buy ? Get ? Frees.


29. Some things are cheaper in a warehouse club, but not all. Check your prices. Here's a great article about shopping the warehouse clubs: Click Here


30. Shop Gargage, tag, or yard sales for things you are not in a hurry for.


31. Do not be brand loyal. Be willing to switch brands.


32. Honor your spending limit.


33. This sounds silly, but don't buy it if you won't use it - even if it is on sale.


34. Just because the item is on the end of the aisle does not mean it is on sale.


35. Shop with a calculator.


36. Check all product packages. Some may have special offers printed on or attached to them.


37. Frequent stores that offer free product samples and in-store coupons.


38. If you must shop with a credit card, use one that offers rewards for your purchases.


39. Watch while your items are being scanned and check your receipt before you leave the store.


40. To save time, compare prices online before shopping brick and morter stores.

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Shopping Tips

BEFORE SHOPPING


Check your pantry to see what you already have. Don't spend money on things you don't need.


Plan your spending to avoid impulse buys.


Grow it or Make it yourself and save!


Make a price book, and frequently refer to it. For more information about price books, click here.


Prepare your menu for the week around what you already have, and what's on sale.


If your area has food co-ops, Join up! A food co-op can reduce your weekly food bill by as much as 50%.


Shop for items BEFORE you run out of them. If you run out of an item you'll have to pay whatever the store is charging that week.


Due to volume discounts, larger stores are generally cheaper than smaller ones.


Avoid trips to the "corner store".


Make a grocery list during the week. Take it with you when you shop. Stick to it.


If you go to the supermarket early in the morning (before 9am) you have a better chance of getting mark down items. Local stores in my area mark down fresh veggies and fruits, frozen items, milks, and meats.


Shop alone - this will save lots of money and frustration.


You have heard this before, but it is so true ... don't shop for groceries on an empty stomach.


Clean out your refrigerator, it will be much easier to put away groceries.


Due to volume discounts, larger stores are generally cheaper than smaller ones.


More often than not, the best sales are on the front and back of your supermarket flyer.



WHILE SHOPPING


Stick to what's on your shopping list.


Ask staff to help you rather than wasting time looking for items or better deals.


Meat is a good source of protein but it's expensive. Cheese, poultry, eggs, peanut butter, dried peas, beans, lentils, and some fish are less expensive and excellent sources of protein.


Buy whole chickens. If you want only breasts, save the dark quarters, freezing for later use. Buying breasts alone is very expensive.


Buy locally grown foods; they are fresher, more nutritious and ecologically smart.


Shop the sales! Take advantage of each store's loss leaders.


Most bargains are found on the higher and lower shelves. Most expensive brands are at eye level (to get your attention).


Watch for unadvertised specials.


Shop for items that you use regularly at all times. If you run out, you will have to pay whatever the supermarket may be charging when you need it.


Stockpile, Stockpile, Stockpile! If a product you use is on sale, buy as much as you can afford and store to last you until the next sale. This is a BIG money saver!


Wait if you can until the item is on sale. If you know your products and stores, you can have enough to last until the item is discounted again.


Use your freezer to stock up when there is a sale on frozen or dairy items, such as cheese, butter and milk.


Buy in bulk when the unit price is less. Larger sizes do not always mean lower prices.


Just because an item has the word "SALE" on it, doesn't mean you are getting it for a lower than normal price. Know your prices. This is one way that a price book can help you.


Use store specific savings cards.


Don't be afraid to try generic or store brands. Most stores will refund your money if you are not satisfied.


Pretty packaging costs you money. You are not only paying for the product, but for the packaging (and advertising) as well.


Buy and use in season veggies and fruit.


Always check the expiration date on dairy products.


Avoid anything disposable.


Convenience foods are more expensive, you are trading money for time. Slice, season, mix, and cook it yourself.


Always check the day old bread basket, and the reduced merchandise cart.


Always ask for a raincheck if an advertised special is out of stock. While you are waiting for the product to come back in, look for more coupons for that product.



AFTER SHOPPING


Always return a product that is spoiled.


Send off for rebates to get items free, or nearly free!


Learn the sales cycles of your favorite stores, and know when to expect certain items to go on sale.


Shop at bakery outlets. Breads and rolls freeze very well.


Remember that no particular store has the lowest price on all items.


Create a "shopping pool". Agree with family and friends to shop sales for each other.