E-Tailers fail to persuade users to buy online - global survey findings (2002)

While global internet usage has grown slightly (up from 31 per cent in 2001 to 34 per cent in 2002), the proportion of users making a purchase in the last four weeks remains at only 15 per cent - the same as in 2001.

The industry's failure to allay fears about online payment security is a major factor preventing growth. Almost one third (30 per cent) of users who have not shopped online said they were reluctant to give their credit card details and over a quarter (28 cent) felt that it was more secure buying goods and service in a store.

Arno Hummerston, Head of TNS Interactive Solutions, Worldwide said:
'Users' concerns about security are nothing new, yet the industry seems to have done little to address them. For the past three years the TNS Global e-commerce Report - in line with most e-commerce research - has highlighted security issues as the main reason for people choosing not to purchase online. Although some of these concerns are probably driven by a reluctance to shop across borders and a mistrust of new dot com brands, in the current global economic climate it is particularly important for the e-commerce industry to put users' minds at ease.

'Offline brand alignment is a clear advantage in achieving this, but quality standards and payment systems supplied by traditional, well-known financial institutions could go someway to stimulate new online shopper growth.'

There are however some positive signs. Asia Pacific has seen an overall rise in online shopping, mainly led by a boom in South Korea where 31 per cent of internet users have shopped online.

Books and CDs are still the most popular items bought online, but there has been a small rise (two per cent) in purchases of higher value items, namely eletronic/electrical goods and holidays/travel. However there are interesting country-to-country variations:

South Korea and the USA buy the most clothes online (25 per cent of all online shoppers)
Online shoppers in Germany buy the most music/CDs (24 per cent )
Online shoppers in Taiwan purchase the most books online (39 per cent)
Holidays or leisure travel purchased online are most popular in Ireland (28 per cent) and Norway (27 per cent)

Other key findings include:

• Some 18 per cent of all internet users worldwide say that they plan to shop online in the next six months

• Almost a quarter (24 per cent) of the adult population has used the internet at home, compared with 13 per cent at work

• Some 16 per cent of men using the internet have shopped online compared with 13 per cent of women

The Global e-commerce Report 2002 is carried out by Taylor Nelson Sofres' Interactive Division and is based on more than 42,000 interviews in 37 countries.