Wednesday, 30 November 2011

Role of Online Shopping in Personal Finance

In today’s Computer Era , Online Shopping has become an important and fast growing process , which can greatly help in handling Personal Finances of an individual or a family . Online Shopping is the procedure through which consumers can directly purchase services or goods over the Internet , without the need of having any middle party service . It is a type of Electronic or E – Commerce Facility . The two most prevalent types of Online Shopping Models are B2C or Business-to-Consumer , where a consumer interacts with a Business Entity online ; where as B2B or Business-to-Business is where a business entity interacts with another Business Entity online . B2B Commerce is also known as B2B Hub for Online Market Exchange .
            Online Shopping started during the E – Commerce 1 Period also known as “Dot Com Era” , between the year 1995 and 2000 . During that time ,, Inc. was probably the First Multinational Company in the world to launch it’s Online Shopping Website in 1995 . Then in 1996 , eBay Inc. which is a C2C Enterprise launched it’s Online Shopping and Auction Website in 1996 . In this way many other multinational companies also known as MNCs of  USA and other countries have launched their Online Shopping Websites over the past fifteen years .
            There are various advantages of Online Shopping over Traditional or Physical Shopping for consumers be it individuals or families . Consumers can save upon their time , money and energy as Online Shops are open for twenty four hours a day and many consumers can access them through their Internet Connections , from their home or workplace . Expense and time on a visit to a conventional shop is saved in this case . Some online shopping sites also have more flexible return policies to compensate rather than the physical retail shops .
            There are various disadvantages of Online Shopping over Traditional or Physical Shopping for consumers be it individuals or families . There is a lack of ability to inspect an Online Shopping Site before purchase , consumers are at a higher risk of fraud because of an online merchant than in a physical shop . Online Merchants also take the risk of fraudulent purchases using stolen credit cards at times .
            The procedure of Online Shopping is quite simple for consumers . Here , first the consumer has to visit the particular online shopping site , where various goods and services are usually listed in categories . Then the consumer has to chose a specific category , where items can be listed further into sub categories . Then from a sub category , the consumer has to choose a particular item of his or her choice to buy . After choosing that item , a list of similar items will be displayed in front of the consumer to choose . Then it’s up to the consumer to avail that service or product through online auction or instant buying . After choosing that payment option , the consumer may be required to register with that shopping site by opening a user account over there . Then further , the consumer can go ahead with the online credit or debit card payment method and finally purchase the particular item or service from the shopping website .

            In this way , we can see that Online Shopping has become a method of modern Electronic Commerce procedures . Thus , it's becoming very prevalent among people be it individuals or families in handling their Personal Finances , when it comes to shopping expenditure .


  1. Now even Internet Search Engines like Google, Yahoo, MSN Bing, AOL and Ask have come into E-Commerce Sector like Online Shopping.

  2. eBay and Amazon are good examples of Online Shopping. Now websites like Alexa are also monitoring these E-Commerce Websites. Alexa is a website which monitors other sites Page Rankings. Due to this, many sites go for SEO Techniques. SEO means Search Engine Optimization.

  3. Save money with coupons codes when shopping online.Online shopping is so easy with


    1. Thanks for telling us all that Online Shopping is so easy ;-0

  4. Online shopping is great, you can sit with a cup of tea and do all the shopping you want. Thank you for sharing this trick with me.