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This can turn out to be a strong competitive advantage for the firm that goes on line. Trust can be transformed into loyalty and consequently into more sales and increase in market share. This can be accomplished by offering special products that cannot be bought offline. Moreover, by making attractive offers and giving bonuses. Also, the security issue for transactions online is very important. If the customer feels secure will tend to buy more. Security has to do with credit card information and privacy.
For companies adopting Internet technology it has been estimated that the cost for attracting new customers is five times more the cost of keeping existing customers satisfied (Chaston, 2001). Legal Part The retailers who go online will have to be aware of the legal issues concerned, meaning that what might be legal in one country or state be illegal in another country or state. So, they have to monitor every legal move to be ready to adjust their content or methods of selling by the Internet.
In retail e-commerce sales there is an increasing trend every year. According to the U. S. census bureau, preliminary first-quarter 2005 retail e-commerce statistics show a growth of 24 percent on a year-over-year basis (Sean Michael Kerner). In the artuicle by Keith Regan we find that The State of Retailing Online 8. 0, the annual report produced by Shop. org — the online arm of the National Retail Federation — and Forrester Research, said 2004 sales reached US$141. 4 billion, an increase of 23. 8 percent.
“One way retailers will grow sales over the next several years will be by launching country-specific sites and operations to accommodate a growing number of international customers,”said Carrie Johnson, Forrester Research analyst and author of the report. Moreover the number of women shopping online continues to grow, leading to the increase of sales gor items such as flowers, gifts and personal care ones. Last year, online accounted for 6. 5 percent of total retail sales, up from 5. 4 percent in 2003 ( Enid Burns). In 2005, online sales are expected to account for 7. 7 percent of total retail sales.
Health and beauty increased 58percent. Sporting goods shot up 43 percent. Computer hardware and software tied auto and auto parts, both growing by 13 percent. ANALYSIS OF QUESTIONAIRE ABOUT E-COMMERCE We have made a research about e -commerce in Greece. We ask 140 persons 52% was men and 48% was woman. We concentrate more in the ages 20-30 82% of the total sample. More than 90% of the people that have been asked use the Internet. The bigger part of remain 10% belongs to the category of female over the age of thirty. We also want to recognize the reasons that Greeks use the Net.
We finally found out that over 80% use it for entertainment and foe information and only 8% for purchases. This percentage was disappointing for us because it small and it is really smaller than the average of the EU accordingly with the national statistical service. In this point we try to evaluate the reasons that Greeks do use the internet for buying products. In this point we have to consider that over the 70% answer that he\she is familiar with e-commerce and almost 1 of 2 has at least once buy a product through the net but this is not the main reason to use the net.
The reasons that they do not use the net for purchase are: 1st that prices are equal with the price in the market 2nd the privacy, they believe that they can the info they get for their advantage 3rd security, in Greece we believe that the Net is less securing that to make hour purchase in the stores 4th delays of delivery, most of the stores are not accurate in their delivery and this is big problem 5th the immediate gratification and the feeling. When you buy through the net you have to wait for your product and you can not try it or touch it, this is the reasons that they do not buy clothes and luxuries through the net.
At this point it is important to mention a comment that have been made from the people that answer our questionnaire, they said “that shopping is a type of entertainment and socialization they love it ” As we said before over 70% is familiar with e commerce and the 80% has visit an e- commerce site. Most of the products that they buy are high-tech devices and they made their reservations. They prefer the net because you can safe time, you can access it 24 for hour a day, it is user friendly because the structure is really good as you get much more detailed information and accurate.
Most people prefer to pay on delivery but the ones that really use the net for purchase prefer credit cards. The Greek e-commerce site that they are known is GERMANOS, E-SHOP, and PLAISIO. The only just e-commerce site is E-SHOP. GERMANOS and PLAISIO are known more from their stores than through the net. So one of the reasons Greek e-commerce site is not use is the fact that people are not familiar with them. The oxymorous in our research that people that use the net more believe that e-commerce and the net are not developed well enough in Greece and they that use the net less believe that it is.
To conclude we have to understand that e-commerce in our country is not developed, people are afraid of the net; they do not know where to look for the e-shops and only 30% prefer the Greeks sites because they do not feel secure with not well known Greek sites. This is the reason that only 3% of the sample is heavy e-buyers. So the e-market is good market to expand as it is not used properly yet, so we have the opportunity to create a e-shop try to make it know through the media and to establish a relationship of respect and reliable relationship through us and our customers.