The internet can be the best place to buy your favourite CD, book a holiday abroad or even shop for your groceries
They surf, covet and buy and then buy some more! A growing army of shoppers is at this very moment purchasing everything from groceries and plane tickets to jewellery, books, music and real estate, at the click of a mouse.
US-based JupiterResearch, a leading authority on the impact of the Internet and emerging consumer technologies on business, forecasts that online retail spending will increase from $81 billion (about Dh297 billion) in 2005 to $95 billion (about Dh348 billion) in 2006, and reach $144 billion (about Dh528 billion) in 2010.
The report also mentions that by 2010, 71 per cent of online users will use the Internet to shop compared to 65 per cent in 2005 and that the Internet will influence nearly half of total retail sales in 2010, compared to just 27 per cent in 2005.
While global figures look good, e-commerce is also doing well in the UAE, which is considered one of the world's best shopping destinations.
"The UAE is at the forefront of e-commerce among the GCC countries and its citizens in particular are the most active e-shoppers in the region.
"Not only do they shop for common e-commerce merchant categories such as books, music and travel, they also actively use online transactions to make payments for utility services such as electricity and water, telephone bills, satellite TV subscriptions and fines," says Tribh Grewal, Senior Manager, Merchant Solutions - Visa International, CEMEA.
Steady growth
"Based on Visa card usage figures, we have seen a growth of nearly 500 per cent in cardholder spend from 2003 to 2005. The data from the first third of 2006 (January-April) shows growth levels of more than 50 per cent over 2005.
"This would indicate that for the current year, we could expect more than 100 per cent growth over 2005. Merchants and other organisations in the UAE are also experiencing steady growth in their e-commerce business.
"Based on our data, e-commerce merchants here have also seen almost a 400 per cent increase in their e-commerce volume during the period between July 2004 and April 2006," says Grewal.
In keeping with the trend, Souq.com, a UAE-based e-commerce site is also showing promising growth.
"We launched in August 2005. Since then our growth rate has been more than 30 per cent per month. Our site allows individuals and small businesses to offer and sell products online.
"The format of the sale is auction-based. We have around 18 main categories ranging from mobile phones, computers and watches to women's clothing and accessories," says Ronaldo Mouchawar, CEO, Souq.com, which had more than 2.5 million page views and transactions worth more than Dh2 million in the last month.
For all needs
Considering the UAE is home to about 180 nationalities with varied lifestyles, tastes and needs, it's not surprising that online shopping is popular.
"Online shopping is becoming more popular in the region because it is a convenient way of shopping that provides buyers global access to a wide variety of products and services from the comfort of their homes and offices.
"Features such as 128-bit encryption and advanced security systems provided by financial institutions also have made online transactions a safe bet," says Owen Belman, Consumer Banking Head, Standard Chartered Bank, UAE and Oman.
For added protection, some banks offer special cards for people who shop online regularly.
According to Priyan Attygalle, Senior Cards Manager, HSBC Bank Middle East Limited, "Our Insite Card has been created specifically for remote shopping environments. This card is a low limit card and does not have a magnetic stripe or a signature panel and cannot be used at retail outlets or for cash advances.
"Apart from offering Air Miles, the only multi-participant programme in the Middle East, purchases on the Insite card are insured against loss, theft and accidental damage. The card also offers up to 56 days of interest free credit."
Citibank also offers the e-Card, which is independent of the main credit card and can be used for online shopping. The competitively priced card offers several features that are intended to protect users.
American Express offers a Gold Credit Card, which is a smart credit card with an embedded chip featuring an ?ID Keeper'.
The ID Keeper is an innovative application on the card's chip that allows card members to securely store their favourite website addresses, personal details, passwords, user names and auto-fill online shopping order forms. This enables card members to shop online more securely, swiftly and conveniently.
"Visa has launched the Verified by Visa programme for e-commerce payments. Verified by Visa is a security system that tells online retailers and banks that you are a genuine cardholder when you shop online.
"It allows you to use a personal password to confirm your identity and protect your Visa card when you use your card on the Internet, providing greater reassurance and security. It is easy to enroll for, simple to use and works with all Visa cards.
"It is also free. This programme and our global Account Information Security (AIS) programme help make the Internet secure for shoppers and merchants," says Theo Benz, Head of Fraud Control, Visa International ? Middle East.
Standard Chartered iBanking service offers customers a secure way to proceed with online transactions.
"Apart from the 128-bit Secure Socket Layer (SSL encryption) that protects the customer's information against disclosure to third parties, SCB's iBanking data is again protected by 1024 bit Crypto, also termed as a ?Dual' encryption.
"This encrypts even the browser's data. SCB's iBanking also does not store cookies in the browser," says Belman.
Souq also pays great importance to security. According to Mouchwar, "Souq.com acts as an ?escrow' service between the buyer and the seller - the funds are only released from the eWallet (MyWallet) to the seller after Souq verifies that the goods have been received by the buyer and he has successfully rated the seller for that transaction," says Mouchwar.
He suggests checking the payment gateway e-commerce websites use, additional shipping charges, return and privacy policy of the site and doing research on what other users are posting when dealing with an e-commerce site.
Shopping safe
Tips for online shopping
- Use a secure web browser: Always look for an 's' after the 'http' in the web page address or URL
- Keep your password secret: Some online stores require you to register a user name and password before buying an item. Just as you keep your cash machine code private, always keep your password confidential
- Use the Internet to compare retailers and get the best price
- Check delivery and return policies: Before completing an online transaction, read the store's delivery and return policies. Find out if you can return items and who bears the cost
- Keep a record of your transactions just in case you need to return an item or have a question about your purchase
- If you think you have given away your account details through a fraudulent e-mail message, website or telephone call, contact the customer service number printed on the back of your card.
Courtesy: Theo Benz, Head of Fraud Control, Visa International - Middle East
