Jaimie Dobson Internet Consultant

Figures just released by IMRG reveal that UK consumer spending for November 2009 was up by a quarter compared to the previous month and by 11% against 2008.

This news comes just after the BBC reports of critisism levied by the consumer advisory group Which?, who claim that many online retailers are breaking the law when it comes to complying with the Distance Selling Regulations.

Not Surprised

Neither of these stories surprise me if I’m honest.

Even though my household generally lives its life online, when it comes to Christmas shopping we’re traditionalists at heart; preferring to trawl around the retail parks rather than click away when it comes to filling our Christmas stockings.

However this year the allure and convenience of online shopping won us over particularly when faced with the pressures of limited time due to work commitments, apathy at leaving the house (brought on by bad weather and a touch of the lurgy) coupled with the need to watch the pennies this year. I suspect others are the same to a lesser or greater degree on all these counts, hence the shift towards the e-tailing platform by many shoppers.

As for Which?. They were critical of the websites’ of many major chains including Marks and Spencer’s and Game, who quite frankly, should know better and are suitably resourced to ensure they are compliant.

However it’s not the big names that we need to worry about when it comes to making sure we as consumers, are suitably protected by the law when purchasing online. After all, should it ever ‘kick-off’ then you’ve got a lot to lose Mr M&S and besides, we all know where you live!

Instead it’s the smaller retailers, the virtual businesses, the ‘drop shippers’ and the back bedroom entrepreneurs who at best, are misinformed or oblivious to their legal obligations; or at worst, are deliberately out to deceive us; that we need to worry about.

Low Barriers to Entry

The problem, some would say, is that the barriers to selling online are very low and policing is practically non-existent.

Think about it!

For as little as a couple hundred quid or so, anyone can download a free shopping cart such as OS Commerce, fill it full of products then bolt-on a PayPal account or even a simple web form that captures credit card details and Bob’s your uncle! You’re online selling! Minimal technical skills required and no real business behind it all, is needed.

To be fair there already is a whole raft of legislation when it comes to selling online. This ranges from the Distance Selling Regulations mentioned above, the PCI standards and the Trade Descriptions Act to name but a few. The banks try to do their bit, by dictating a standard of website before they will grant a merchant account, but judging by the number of e-commerce websites that I come across on a regular basis that fail to make the grade; the current level of policing isn’t enough to ensure adequate consumer protection.

For example, take a look at this website I came across recently. What’s wrong with it? Answers on a very large postcard please to…

My Top 10 Warning Signs

So to help consumers spot the warning signs, I’ve compiled a list of the top ten characteristics shoppers need to look out for if they want to buy with confidence from an e-commerce website.

1. Is there an easy way to contact the website owners other than email i.e. by telephone or post?
2. Is their telephone line answered by a knowledgeable human being? Give it a try.
3. Is there a real-world bricks and mortar postal address available on the site?
4. Is the company that runs the website a limited company? Look for a company registration number and check they exist on the Companies House website. Not essential, but a limited company is easier to track down.
5. Do they offer a clear delivery and returns policy? What guarantees do they offer in case of non-delivery or faulty products?
6. What is their payment policy, do they take a good leaf out of Amazon’s book and only take payment from your card as your goods are dispatched?
7. Are there other customer reviews or ratings (ideally user generated) on their website? What do they say?
8. How does the website handle credit cards? Look for the secure padlock symbol and ideally an association with a well known card processing provider perhaps linked to a major bank or a provider such as SagePay or WorldPay.
9. If you have doubts about the website, try googling them to see what other references there are to them on the web. You could be surprised what a search brings up.
10. Finally, does the design and shopping process you experience on the website, make you feel comfortable? If it doesn’t abandon your purchase and look elsewhere.

This list isn’t exhaustive, post your own suggestions below.

Happy Christmas to you all.

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Tags: E-Commerce, Online Shopping