What is online shopping?

Online contracts are classified as distance contracts, which means that the trader (service
provider, seller) and the consumer (natural person who is acting for purposes which are outside
his trade, business or profession), in lack of their simultaneous, actual and physical presence
enter into contract not by meeting in person (e.g. in commercial premises, market, open-air
market, via trade agent etc.), but only in an electronic way.

http://magyarefk.hu/en/useful-information/online-shoping/the-definition-of-online-shopping.html

What is ONLINE SHOPPING?

The purchase of products and services on the Internet. Online
shopping has become increasingly popular, due to convenience (and
often lower prices). Especially in the holiday season, online shopping
saves an individual the hassle of searching several stores and then
waiting in long queues to buy a particular item.
TLD Example: The shift in consumer preference from traditional
brick-and-mortar stores to online shopping has revolutionized the
retail industry.
https://thelawdictionary.org/online-shopping/

Online shopping
Updated: 10/17/2017 by Computer Hope

The process of searching for and purchasing goods and services over
the Internet through the use of a web browser is referred to as online
shopping. The main allure of online shopping is that consumers may
find and purchase items they need (which are then shipped to their
front door) without ever needing to leave the house. Today, almost
anything can be purchased through online shopping, amounting to
billions of dollars a year in sales.
https://www.computerhope.com/jargon/o/online-shopping.htm
The act of purchasing products or services over the Internet. Online shopping
has grown in popularity over the years, mainly because people find it convenient
and easy to bargain shop from the comfort of their home or office. One of the
most enticing factor about online shopping, particularly during a holiday season,
is it alleviates the need to wait in long lines or search from store to store for a
particular item.

Read more: http://www.businessdictionary.com/definition/online-shopping.html

noun
Online shopping is defined as purchasing items from Internet retailers
as opposed to a shop or store.

Buying books at Amazon.com instead of your local book store is an example of

online shopping.
YourDictionary definition and usage example. Copyright © 2017 by LoveToKnow Corp

Read more at http://www.yourdictionary.com/online-

shopping#iEIf0FGB1XOhpbLH.99

The action or activity of buying goods or services over the Internet.

‘broadband makes online shopping easier’
https://en.oxforddictionaries.com/definition/online_shopping

Online shopping involves purchasing products or services

over the Internet. Online shopping is done through an online
shop, e-shop, e-store, virtual store, webshop, Internet shop or
online store. All the products in online stores are described
through text, with photos and with multimedia files. Many
online stores will provide links for extra information about their
products. They often make available, safety procedures,
instructions, manufacture specification and demonstrations.
Some will provide advice or how-to guides. As you are
already on the Internet, you can search for product reviews
that other consumers may have posted. Some online stores
have place for these reviews on their own sites. Many allow
users to rate their products. Advice such as this from other
consumers, about a product, would be unavailable in a
conventional store
http://www.streetdirectory.com/etoday/definition-of-online-shopping-jeljj.html

Right tools can make online shopping

easier
October 25, 2009|By Gregory Karp, personal finance writer for The
Morning Call, Allentown, Pa
Online shopping can be a smart consumer's best friend, with the ability to
easily comparison shop, search for discounts and make purchases with a
few mouse clicks.
You could always visit shopping comparison sites, such as MySimon.com,
or search for coupon codes at one of many code-aggregators. But now a
slew of Web browser add-ons makes smart online shopping easier. Here's a
sampling:

Billeo toolbar: With perhaps the most functionality, billeo.com helps with
shopping, discount codes and bill paying. It will autofill your logins and
passwords to retailer sites, as well as forms for your shipping and billing
addresses and credit card information. On the checkout page, it will alert
you if a discount code is available for your purchase and autofill the code.
Billeo will save transaction confirmation pages to provide a shopping
history. And it aids with paying via vendor sites.
Personal information is encrypted and stored on your computer rather than
at Billeo, said company founder Murali Subbarao.

Billeo is available for Internet Explorer and Firefox on Windows and

Firefox for Mac. Offer Assistant, which applies discounts and coupon codes,
is expected soon for the Mac, Subbarao said.

Dealio: One important function Billeo doesn't have is comparing prices

among retailers. Dealio.com/toolbar will do that and search eBay.
Comparisons include tax and shipping for a true apples-to-apples
approach. The toolbar works with IE and Firefox on Windows only.
InvisibleHand plug-in: If you don't want a bunch of toolbars stealing your
browser real estate, getinvisiblehand.com is for you. It shows itself only
when you're on a product description page. It will alert you when another
retailer has a lower price on the item. Firefox only.
Retailmenot and CouponCabin: Retailmenot.ourtoolbar.com and
couponcabin.com/toolbar are among the better sites to search for coupon
codes, which can be entered at online checkout to give you goodies,
including discounts or free shipping. Both are available for IE and Firefox.
Retailmenot also has a version for Apple's Safari browser.
PriceProtectr toolbar: What if the price for an item drops soon after the
purchase? Many retailers offer price-protection policies that refund the
difference within a certain time frame, such as 30 days after purchase.
Priceprotectr.com/toolbar.jsp makes it easy to log your purchases at its
Web site, which alerts you by e-mail if the price drops within the retailer's
price-protection period. Available for IE and Firefox.
But shopping toolbars can be controversial:

*Privacy. See what information it stores.

*Profits. Companies that make toolbars offering coupon codes and steering
you to lower prices earn money by driving traffic to retailers.
*Rewards. You can grab some of that affiliate money by joining and using a
shopping rewards program, such as FatWallet.com.
----------

Gregory Karp is a personal finance writer for The Morning Call, Allentown,
Pa. E-mail him at yourmoney@tribune.com

Online shopping gender gap

March 15, 2008|By The Wall Street Journal
This group is a retailer's dream: When shopping online, they spend more,
make snap decisions -- and return less stuff.
Who are these desirable shoppers? Men.

While men and women shop differently in brick-and-mortar stores, the

Internet has long been seen as offering similar speed and efficiency to both
genders. But recent research by analysts and retailers has turned up
significant gender differences when it comes to online shopping.
 AN EXAMPLE OF A MARKETING PLAN

SPREE WATCH MARKETING PLAN SUMMARY

Based on an evaluation of the watch market and our strengths, General will introduce the Spree watch.

SITUATION ANALYSIS
Half the buyers of branded fashion watches are between 18 and 34 years of age. This group, which
purchases more watches per capita than those older, is our primary market segment. Watch purchases are
more likely by consumers in the northeast and Midwest. Many purchases are expected to be impulse,
requiring strong point-of-purchase support. Seventy percent of the market is concentrated with strong
competition from Swatch, Fossil, Guess?, and Anne Kline. We have extensive experience in the
manufacture of innovative, high quality, precision plastics and timing devices permitting us to offer the
consumer value in a branded fashion watch. Additionally, we have experience distributing products into
75 percent of the outlets for branded fashion watches.

OBJECTIVES
The combination of a unique, cost-effective design allows us to establish a three percent market share in
the first year. The Spree watch project will break-even in 1998.

MARKETING STRATEGIES
General will introduce a new product, the innovative Spree watch, using penetration pricing, extensive
advertising, and expanded distribution in order to increase our revenues and growth rate.

ACTION PLAN
The Spree watch has strong product benefits compared to current market offerings. To achieve our
objectives we will offer our unique watch in a variety of designs at a suggested retail price of $45. Our
current distribution covers 75 percent of the market. At this time we will not expand our distribution to
access the jewelry store retail channel. We will increase our sales force by 5 persons and add a sales
trainer to support for our market plan. Advertising of one million dollars will emphasis the unique design
of the watch and is weighted toward print and point-of-purchase displays. This and television advertising
will be scheduled two-thirds in the first six months of the campaign. To achieve consumer awareness in
the first year, our advertising voice share will be considerably higher than that of the four market leaders.

FINANCIAL ANALYSIS AND EXPECTED RESULTS

We expect first year sales of 8.5 million dollars and project break-even for the project in the first year.

CONTINGENCY PLANS
If the competition increases advertising or our sales are less than expected, we are prepared to add as
much $500,000 to our advertising budget.

SPREE - THE MARKET PLAN

SITUATION ANALYSIS

General's core business is industrial timing devices and consumer clocks, based on
skills in manufacturing high quality timing movements and plastic casings. This
market plan is based on providing consumers with a high quality, innovative watch. It
will be offered in a variety of styles for both men and women. The casing and
movement has other potential applications not discussed in this plan.

Our 1995 profits of 30 million dollars represent 7.5 percent of total sales. Sales
growth has slowed to a current level of 5 percent annually. Growth in current markets
is expected to be limited. The Spree watch is one of several projects with the potential
to improve General's growth rate.

Market Analysis

The Spree watch will compete directly with several other branded fashion watches.
The market size for branded fashion watches is forecast to be $524 million retail
dollars in 1998, growing to $721 million by 2002. Annual market growth is expected
to exceed six percent through 2002, exceeding our current annual sales growth.

Market Segments
Table 1: Market Segments by Age

AGE PERCENT PERCENT OF Those under 35 years of age purchase

RELATIVE
OF WATCH POPULATION PURCHASE
BUYERS OVER 17 slightly over 50 percent of all branded
INDEX
fashion watches as shown in the Table 1.
18-24 19% 13% 1.46
The highest purchase prevalence is those
25-34 33 19 1.74 from 25 to 34 who purchase 74 percent more
watches per capita than those the average
35-54 35 40 0.88 consumer. Purchase behavior is expected to

55+ 13 29 0.45
differ among age segments and by gender.
Young females [18-24 years of age] are
expected to be intense purchasers. This group is likely to be very styling conscious.
Women in the 25 to 34 age group will be our second significant segment, expected to
buy more watches than any other age-sex segment.

Consumer purchases of branded fashion watches also vary by region as shown in

Table 2. An index of relative watch sales by regions shows that sales are above
average in the east north central, west north central, north central, and midatlantic
states. Product introduction is likely to be more successful in the states in these
regions.
Table 2: Watch Sales by Region
REGION WATCH SALES POPULATION INDEX OF
WATCH
Consumer Behavior
SALES
%
ENC 20% 15%
Swatch has changed watch buying habits by
1.33
encouraging ownership of multiple low-priced,
SA 16 17 0.94
carefully designed branded fashion watches.
MA 15 13 1.15
Brand switching and experimentation by
WEST 15 21 0.71
consumers is easy for low priced watches,
WSC 10 10 1.00 assuming availability. Consumers are very

WNC 8 7 1.14 design oriented when buying branded fashion

NE 6 5 1.20 watches. Watch attributes that we consider

ESC 5 6 0.83 most important include watch and band design,

MOUNT 5 6 0.83 packaging, price, and durability. Distribution

and display are very important in this market
and can encourage impulse purchases for both personal use and as gifts.

Consumers are reached through five types of outlets.. We currently have access to
four of these channels, representing 75 percent of watch sales. Channel development
is necessary to reach the total watch market. A majority of branded fashion watches
are currently purchased at department stores. We will take advantage of our strong
distribution through department, discount, and drug stores to assure widespread
availability of Spree watches. Jewelry store channel development will be deferred
until we are established in our traditional retail channels.

Competitive Analysis

Although there are fourteen competitors in this market, there is substantial

concentration. Swatch, Fossil, Guess?, and Anne Kline are strong competitors,
holding 70 percent of the market. Swatch and Fossil have strong manufacturing and
distribution skills, while Guess? and Anne Kline have less extensive distribution
networks but strong name recognition in fashion. Fossil and Swatch are strong at the
lower price lines. Branded fashion watches are a relatively new product category.
Although pioneered by Swatch, there is considerable opportunity for new entrants as
demonstrated by Fossil and Guess?.

Company Analysis

General currently distributes products through channels accounting for 75 percent of

watch sales. Branded fashion watch sales are growing faster than our current product
lines. Our innovative product, product design skills, strong manufacturing skills, and
experience in distributing consumer clocks provide an opportunity for entry and
growth in this market.

SWOT Analysis

Strengths

 Innovative production methods provides the potential for new designs

 Experience in distribution channels for timepieces

Weaknesses

 No experience in distribution to jewelry stores

 No experience in marketing fashion products

Opportunities

 Large market

 Market growing faster than our current sales

 Consumer demand for fashion goods creates a demand for innovative

products

Threats

 Strong competition with concentrated market shares

 Possibility of new market entries

OBJECTIVES
  Market share of three percent of the branded fashion watch market in the first year [sales
of over 8 million dollars].
 Project break-even in 1998.

MARKETING STRATEGIES

General will introduce a new product, the innovative Spree watch, using penetration
pricing, extensive advertising, and expanded distribution in order to increase our
revenues and growth rate.

ACTION PLAN

Product

We will introduce between 30 to 40 different designs in the first year. One quarter of
these will have a "metal" case, copying many of the traditional and modern metal
designs. These are targeted at consumers 25 and over. We will design a series
including licensed characters and unusual shapes for the market segment under 24
years of age. Swatch does not have exclusive licensing for Disney and Warner
Brothers characters or Coke. By using these and others we will have a variety of
product and character designs in our line. The most unusual aspect of our line will be
some very unusual shapes. Several of these will be geometric; hexagon, trapezoid,
oval, and diamond. For younger ages our technology allows the design of watches in
the shapes of cartoon character faces.

Price

The Spree watch will be sold for a suggested retail price of $45. We believe that we
have product quality and feature advantages, encouraging the use of a price slightly
exceeding Swatch. This pricing strategy, coupled with our efficient production
methods, aids in achieving our relatively high market share for a new product entry.

Distribution

We will introduce Spree in the northeast but within the first year sell to the national
market. With our current strong distribution channels nationwide covering 75 percent
of watch sales, we will limit our potential if we restrict our distribution to specific
regional markets. Although we do not currently have jewelry stores, our distribution
will place watches in at least 75 percent of locations in the United States. We will use
current normal distributor markups.
Promotion

Five new sales representatives will be added to assist in the development of new
distribution outlets. A sales trainer will be hired to train the sales force in the new
product. This will be within our $500,000 sales support budget based on an average
salary and benefits cost of $100,000 for each position.

The advertising level for the four leading firms can be compared by determining the
ratio of voice share (% of total advertising dollars of $20 million) divided by the
market share as shown in Table 3. Consumers will not know our brand; therefore, we
will have to advertise more aggressively to achieve brand awareness. Although our
market share goal in 1998 is three percent, we will set advertising at one million
dollars. This will achieve an advertising voice/market index considerably higher than
our competition.
Table 3: Fashion Watch Advertising and Voice

COMPANY MARKET VOICE VOICE/ ADVERTISING

SHARE SHARE
MARKET MILLION $

SWATCH 20% 28% 1.4 5.5

FOSSIL 20% 24% 1.2 4.8

GUESS? 20% 21% 1.05 4.2

ANNE 13% 13% 1.9 2.5

KLINE

SPREE 3% 5% 5.0 1.0

PLAN [assumes
same level
of total
advertising
as last year]

Media will be targeted to our major market segments; women between 18 and 24 and
between 25 and 34. Smaller amounts will be directed to other segments.

FINANCIAL ANALYSIS AND EXPECTED RESULTS

As shown in Tables 1 and 2 of the financial appendix, we expect to achieve a market

share of three percent and sales of $8.5 million in the first year. The Spree watch
project will break-even in the first year. We do not expect any watch technology
breakthroughs during this period. Competition is expected to be based on design,
price, and achieving widespread distribution, areas in which we expect to be very
competitive.

In conclusion, we will invest one million dollars in the Spree watch project. We can
achieve sufficient market share to achieve our financial and marketing objectives.
During the next five years the market is expected to grow and our costs are expected
to decline with experience increasing unit contribution. Our greatest challenge will be
tracking the market's tastes in watch design and meeting and leading these with
creative and innovative designs.

CONTINGENCY PLANS
Table 4: Impact of Advertising Levels on Financial Results
TOTAL AD
BUDGET
BREAK EVEN
YEAR
NET PRESENT It is not expected that there will be increased
VALUE IN MIL. $
$2,500,000 1998 $35.8 price competition due to the entry of the Spree
3,000,000 1999 34.0 watch. Increased advertising, however, might
3,500,000 1999 30.4 lead to an increase in industry advertising. A
4,000,000 1999 28.6
sensitivity analysis of the effect of increased
advertising on our break-even year and cumulative profits appears in Table 4.
Increases in advertising in steps of an additional $500,000 dollars up to $4 million,
assuming no additional gains in market share, have fairly limited effect on our
performance. Therefore, in the event that there is increased industry advertising, we
are prepared to increase our advertising by as much as $1,500,000 annually. Our
increase advertising also will allow us to react to lower than expected consumer
awareness, fewer distribution outlets than planned, or less than expected consumer
acceptance of Spree watch.

FINANCIAL APPENDIX
TABLE 1: PRO-FORMA INCOME STATEMENT AT $50 PRICE

CURRENT YEAR 1997

BEFORE
RESEARCH & DEVELOPMENT RELEASE $50.00 SUGGESTED RETAIL PRICE
INVESTIGATION COSTS $250,000 $12.50 LESS RETAIL DISCOUNT (25%)
DEVELOPMENT COSTS $750,000 $37.50 PRICE TO RETAIL
DISCOUNT RATE PER YEAR 12.00% $7.50 LESS WHOLESALE DISCOUNT (20%)
$30.00 MFG SELLING PRICE
 ANNUAL COSTS AND SALES 1998 1999 2000 2001 2002
PRODUCER'S PRICE PER UNIT $30.00 $30.00 $30.00 $30.00 $30.00
VAR COSTS PER UNIT $15.00 $14.00 $13.50 $13.25 $12.00
FIXED COSTS PER YEAR $2,000,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000
RETAIL SALES FORECAST [MIL $] $524 $574 $616 $672 $721
INDUSTRY SALES PER YEAR [UNITS] 10,480,000 11,480,000 12,320,000 13,440,000 14,420,000
COMPANY MARKET SHARE [UNITS] 2.00% 4.00% 6.00% 8.00% 10.00%
COMPANY SALES PER YEAR [UNITS] 209,600 459,200 739,200 1,075,200 1,442,000

BEFORE
INCOME STATEMENT RELEASE 1998 1999 2000 2001 2002
SALES REVENUES $6,288,000 $13,776,000 $22,176,000 $32,256,000 $43,260,000
VARIABLE COSTS $3,144,000 $6,428,800 $9,979,200 $14,246,400 $17,304,000
FIXED COSTS $1,000,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000
PROFITS ($1,000,000) $1,144,000 $5,347,200 $10,196,800 $16,009,600 $23,956,000
CUMULATIVE PROFITS $144,000 $5,491,200 $15,688,000 $31,697,600 $55,653,600
NET PRESENT VALUE $35,309,732

TABLE 2: PRO-FORMA INCOME STATEMENT AT $45 PRICE

CURRENT YEAR 1997

BEFORE
RESEARCH & DEVELOPMENT RELEASE $45.00 SUGGESTED RETAIL PRICE
INVESTIGATION COSTS $250,000 $11.25 LESS RETAIL DISCOUNT (25%)
DEVELOPMENT COSTS $750,000 $33.75 PRICE TO RETAIL
DISCOUNT RATE PER YEAR 12.00% $6.75 LESS WHOLESALE DISCOUNT (20%)
$27.00 MFG SELLING PRICE

ANNUAL COSTS AND SALES 1998 1999 2000 2001 2002

PRODUCER'S PRICE PER UNIT $27.00 $27.00 $27.00 $27.00 $27.00
VAR COSTS PER UNIT $15.00 $14.00 $13.50 $13.25 $12.00
FIXED COSTS PER YEAR $2,000,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000
RETAIL SALES FORECAST [MIL $] $524 $574 $616 $672 $721
INDUSTRY SALES PER YEAR [UNITS] 10,480,000 11,480,000 12,320,000 13,440,000 14,420,000
COMPANY MARKET SHARE [UNITS] 3.00% 5.00% 8.00% 10.00% 11.00%
COMPANY SALES PER YEAR [UNITS] 314,400 574,000 985,600 1,344,000 1,586,200

BEFORE
INCOME STATEMENT RELEASE 1998 1999 2000 2001 2002
SALES REVENUES $8,488,800 $15,498,000 $26,611,200 $36,288,000 $42,827,400
VARIABLE COSTS $4,716,000 $8,036,000 $13,305,600 $17,808,000 $19,034,400
FIXED COSTS $1,000,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000
PROFITS ($1,000,000) $1,772,800 $5,462,000 $11,305,600 $16,480,000 $21,793,000
CUMULATIVE PROFITS $772,800 $6,234,800 $17,540,400 $34,020,400 $55,813,400
NET PRESENT VALUE $35,823,504