Sharp Rise in Online Retailer Complaints

The long lines for the newest iPhone showed that consumers are still willing to wait for the latest and greatest electronic device. However, many prefer to skip the line and jump online to find good discounts on electronics and other items. But before you do, Better Business Bureau is warning online shoppers to beware of questionable advertisements and phony websites.

BBB received six times more complaints nationally against online retailers in 2012 than 2011 – from 62 in 2011 to 347 complaints in 2012. Most consumers allege they were charged undisclosed fees and taxes, while others claim they were charged for a product they later discovered was out of stock and undeliverable.

When considering the purchase of an electronic device or any item from an online retailer, it’s important for consumers to do their research. Make sure the price advertised is specifically for the device you want and not just a similar version. Also, remember that not all websites are legitimate. Ensure the site is secure by looking for the “s” in https when entering your payment information.

BBB advises consumers to also look out for the following when planning to do business with an online retailer:

1) Advertised prices are much lower than retail. Everyone is looking for a bargain on electronics and scammers use tantalizingly low prices to lure victims in. If the prices for items are well below those of trusted competitors, be prepared to walk away.

2) Spelling and grammar. Many phony electronics websites are created by scammers overseas and you can spot them because they usually contain spelling and grammar mistakes.

3) Payment via wire transfer only. Scammers often ask victims to wire payments because the money cannot be easily tracked or retrieved in the case of fraud. BBB recommends always using a credit card to pay for electronics online. If the website turns out to be fraudulent, you can dispute the charge with your credit card company.

4) Lack of information. Always try to find a seller’s physical address, not just a P.O. Box and phone number. Research the company’s name and website for additional information. Check bbb.org for detailed information about the company including owner information and history of complaints.

5) Fraudulent security seals. When shopping online, you want to look for the seals of trusted organizations and confirm that the business’s use of the seal is legitimate. You can typically do this by clicking on the seal which, if legitimate, will link you to a confirmation page on the certifying organization’s site. For BBB Accredited Businesses using the dynamic seal on their website, the clickable link will direct the consumer back to the company’s BBB Business Review.

How often do you shop online for business or personal reasons?

Five Steps to Building an E-Commerce Site for Your Small Business

Expanding your business into the world of e-commerce is a huge step. It can be expensive, time consuming, frustrating and at the same time, the most rewarding adventure you’ll ever take!

Here are five steps to help build an e-commerce site:

1. Start with a plan: Have a 3-year business plan before you get started, and update the plan as your business changes and grows. Local organizations and online webinars are available to assist small business owners with the development of a business plan.

2. Name your site: Creating a website is a primary goal for any e-commerce business. Before you get that far, you need to name and register your website. Choosing a name can be hard; it has to be unique, reflective of who you are and what you are offering, while being catchy and memorable.

3. Assemble your pages: You’ll need pictures and descriptions of your products and services to display on your site. There are copyright laws for pictures and content on the Internet, so be very careful when using anything without permission; fines can be very costly.

4. Setup Payment Processing: Once your web site is active, you need to be able to accept payments for your products or services. Before you start taking credit card payments, you need to make sure you are Payment Card Industry Data Security Standard (PCI DSS) compliant. This means you are able to protect your customers’ credit card information. Online merchants are prime targets for data thieves. If data is stolen and it is your fault, you can incur fines or penalties and may even lose your right to accept credit card payments. Most processing companies take care of this for you, but research ahead of time to avoid issues.

5. Start marketing: The most important part of the e-commerce puzzle is being found. There are many ways to help customers find your site, but most of them involve paying for advertising. Over time, your site will show up naturally in search engines, but the top positions can be purchased (known as pay-per-click). Writing articles and blogs with links to your products is also a free way to increase your relevance online. Lack of a good marketing strategy is the biggest pitfall to an e-commerce site. Spending money that doesn't turn into sales can sink a business. Constant testing of ads and writing information that readers are interested in will continue to build strong foundations for a successful e-commerce sites.