E-Commerce Grows Despite
Persistent Concerns
A recent U.S. Census Bureau report shows
e-commerce sales in the fourth quarter of 2000 rose by 67.1% over
the previous year’s fourth quarter totals. While these numbers
reflect a significant growth in online purchasing, e-commerce
still lags far behind traditional brick and mortar stores.
According
to the Bureau’s February 16th report, fourth quarter estimates
for the year 2000 show e-commerce accounting for $8.686 billion of
the $856.2 billion retail pie. While a 1% share may seem small,
one must consider that the fourth quarter of 1999 saw only a 0.6%
share for e-commerce – an increase of 67.1% in 2000.
During
the whole of 2000, online sales accounted for 0.8% of total U.S.
retail numbers. Consumers spent $25.8 billion via the internet in
the past year.
The foremost obstacle to advancing online
shopping is one of security. Consumers have over and over again
voiced serious concern about the sanctity of credit card
transactions in cyberspace. In response to these worries, some
companies have begun offering credit cards that are essentially
disposable – issuing a different card number for each
transaction. Even if the number is intercepted it will be
inoperable for any further transactions.
While this measure of security has
substantially assuaged shoppers' fears about security, it has also
frustrated many when the issue of customer service arises. Among
the drawbacks to the disposable card system is the effort required
by companies to track a specific transaction. Normally, credit
card numbers are used as identifiers in assisting customers with
questions about their purchases. With disposable numbers, the
process of tracing orders back to the cardholder is much more
difficult. Frustration may in fact be a more potent roadblock to
online spending than any fear about security.
E-Pass offers a solution to the disposable
card problem. Only one number is needed, so businesses have no
problem tracking a consumer's order. And with E-Pass's advanced
user control, the card number is useless in anyone's hand but the
owner's. With the comprehensive solutions E-Pass offers, it is
certain that online shopping numbers will continue to rise.
For
more information, please visit:
U.S.
Census Bureau
http://www.census.gov/