Online Shopping Tips and Hazards
By Sue C. Quimby, CPCU, AU, CIC, CPIW, DAE – Vice President/Media Editor
The holidays are a time of increased spending and celebrating. The COVID-19 pandemic and improved technology have led to a sharp increase in online shopping. The digital world is not without risks, however. Alerting clients to possible scams and dangers of online shopping, and helping them avoid losses is another sign of the true insurance professional.
The convenience of online shopping has changed the world. Statista.com predicts that in 2021, 15% of retail sales in the United States will be done online. This is up from 11% in 2019. 2.14 billion people – approximately 1 in 4 of everyone in the world -will shop online in 2021(oberlo.com). According to zdnet.com, consumers in the United States will spend over $900 billion online in 2021. An interesting statistic is that, for the first time, online Black Friday and Cyber Monday sales decreased in 2021. This may be due in part to the projected supply chain problems and subsequent extended Black Friday sales offered by many retailers. In store traffic increased during the 2021 holiday season, although not to pre-pandemic levels.
Fraudulent websites offer name brand goods at significant discounts. Make sure the website is legitimate by checking the domain name, or seeing if they have a rating on www.ResellerRatings.com. Spelling and grammar mistakes are also a giveaway since many fraudulent sites are created outside of the Unites States where English is not the primary language. (www.asecurelife.com) Maintain updated browsers and virus protection on your devices – they can alert you when you access sites that are unsafe. Website checkers are also available, such as Google Transparency Report.
All of these sales have to be delivered, which has meant a boon to the package delivery industry. There has also been an increase in theft of these packages. “Porch pirates” follow delivery trucks and steal items left for delivery. Porch pirates stole over $5.4 billion in goods during 2021. 13% of Americans have reported packages stolen from their front door, mailbox or porch in the year ending July 2021.
There are a number of ways to reduce the chance that packages will be stolen. Ask the delivery company to hold the package at their facility for pick up. Sign up for email tracking of shipments, and notification of delivery. If you won’t be home for delivery, ask a neighbor to watch, or have packages delivered to a location not readily visible from the street. Request that delivery only be made with an authorized signature. Have packages sent to work or another safe location. Surveillance cameras with real time access to the camera on your phone or other device, can also help prevent theft. Another option is to have items shipped to the store for pick up at your convenience. In any event, it is a good idea to purchase insurance for high value items, as there are limitations on the liability of the package delivery companies.
For those who are not comfortable with technology, online shopping is not the only option. In fact, nearly ¼ of small businesses in America do not have websites. Even after the pandemic, with forced lockdowns, quarantines and a surge in online activity, customers must visit the actual store to shop. Some of the reasons given for not having a website include cost, time and effort needed to maintain, no perceived need, or inadequate staff. In person shopping reduces the chance of online theft of information or porch piracy.
Online sales have changed how most Americans people live their lives. Online shopping can be a real time saver and can be ideal for those with limited mobility. However, there are drawbacks to beware of. Helping clients protect themselves against loss, especially during the holidays, is another value-added service of the professional insurance agent.
