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Shopping in Cyberspace
FIGHT BACK! BY DAVID HOROWITZ
Shopping in Cyberspace
One American household in three now has a personal computer. And for the nation's
retailers, that represents a tremendous untapped customer base for online shopping services.
Shopping by computer is a natural extension of catalog and television sales. Instead of filling outand mailing order forms or waiting for a particular item to be shown on TV, shoppers in
cyberspace can scan catalogs and place orders directly from their computer by means of a
modem connection to the retailer's mainframe.
In the past year, online services like Compuserve, American On-Line and Prodigy have
greatly expanded their shopping services. JC Penny and Spiegel already have extensive product
lines available by computer. Lillian Vernon, one of the nation's largest mail-order houses, offers
CD-ROM that contains catalogs from a number of different retailers.
Last September, the Home Shopping Network (HSN) announced it had bought the Internet
Shopping Network. Industry analysts say it's a good match, since HSN already uses the type of
computer system needed to process online ordering. QVC has also announced plans to enter the
cyberspace marketplace.
In northern California, Safeway Stores is running a pilot project that allows customers to hop for groceries by computer. Access to the system is provided by an interactive service called
Peapod. Subscribers can dial in, browse the aisles at Safeway, shop for specials, compare prices
and place their orders right on their own computer screens at home. Groceries are sold at normal
retail prices (less any promotional discounts) and delivered to the customers' homes by Peapod
drivers -- all for a flat monthly fee of $29.
In spite of all the hype for high-tech retailing, however, shopping by computer is still ints
infancy. More development work needs to be done before online services can rival mail-order
and store shopping. For one thing, the so-called "user interface" is still somewhat clumsy.
Shoppers must be savvy computer users to find their way around on the Internet. Easy access
will be an important factor in the future of online retailing.
The technology will also have to be more reliable. Right now, if there are too many people sing the service at one time, orders can get lost, the retailers' computers can overload, and the cstomers' connections can crash in the middle of a shopping session.
Companies will also have to learn innovative ways to use interactive computer systems to
sell their products. Simply putting catalog pictures online is no great improvement over the
catalogs we get in the mail. Computers must provide something catalogs and TV shopping shows
cannot -- personal service. For example, when shoppers can use computer modeling to "try on"
various styles, colors and fabrics in clothing before they buy, that will be a real step forward in yberspace marketing.
We're not there yet -- not quite. Online, interactive computer shopping is still evolving, xpanding and looking for its niche in the American marketplace. And those retailers who get
there first with the best products, prices and services will have a huge lead on the competition.
If you have any questions or comments, please write to David Horowitz in the Consumer
Forum+ (go FIGHTBACK). COPYRIGHT 1995 CREATORS SYNDICATE, INC.
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