Online Shopping Is Better

Most Fools think shopping online is cheaper. But did you know you also have more legal rights online than you do buying from a shop?

With recession looming large and consumer confidence low, the British high street is bracing itself for the worst Christmas in over a decade.

As a result, many retailers are already engaged in aggressive price-cutting competitions, and festive advertising has begun in earnest.

Yet online shopping looks set to boom this season: according to IMRG (Interactive Media in Retail Group) and Capgemini, sales made via the worldwide web will be 15% higher this year than they were in 2007.

It seems that despite shops' best efforts, people are turning to their PCs in search of seasonal bargains. So is online shopping really the better option?

Online shopping is cheaper

As faithful Fools will know, I've never made any secret of my love for online shopping. This summer, I proved that online shopping is cheaper when I searched for the best deals on a `basket' of 10 items.

I discovered every single one was available for less via the internet, and would have saved 17% (£75) by buying my goodies online.

More recently, I shared my top tips for online shopping in this video. However, when I chatted to the local Londoners who contributed to it, I was amazed at how many were deeply suspicious of online shopping.

In this article, I'd like to allay fears about the risks of shopping online and provide some tips on how to shop safely.

In addition, I'll explain why your position as a consumer is in many ways better -- not worse -- when you choose to buy goods online.

What people are worried about

For a start, many people worry that when they purchase something online, it could take months to appear. Even worse, perhaps it won't turn up at all.

And what if, when the item you've waited for finally arrives, it looks nothing like the online photo? What if it's faulty, or simply doesn't do what it's supposed to?

On top of all these worries is the concern that your personal details might be stolen and misused as a result of online shopping. Identity fraudsters are constantly finding new and innovative ways to try to obtain the information they need -- and according to Get Safe Online, the average adult could be worth around £14,500 to a determined con artist.

Ensure you shop securely

The good news is there are things you can do to keep your details safe. This excellent article by my Foolish friend Cliff D'Arcy contains 12 tips on how to protect yourself and your computer from hackers, viruses, spyware and spam.

When it comes to paying for goods online, there several other additional things I'd urge Fools to consider:

 Always make sure the padlock symbol appears in the bottom (or top) right hand corner of your browser window before you input any of your details. It should be visible in the grey `border' of the page you're using -- not on the page itself.

 When you see the padlock symbol, click on it to make sure that the seller's SSL (Secure Socket Layer) Certificate is current and registered to the correct address.

 Check that the web address at the top of the window begins with https://. The `s' stands for secure.

 If your computer warns you about a site's Certificate, consider shopping somewhere else.

 Don't be concerned if the address bar of the page you're using turns green! This may happen to let you know the site is secure.

 A reputable online retailer should feature a geographical business address on its website. Beware of those who list P.O. Boxes instead.

 You should be able to find the company's registered name and number, and also an email address you can write to should this prove necessary. If you can't, you may want to think about shopping elsewhere.

Extra rights for online shoppers

My Foolish colleague Donna Werbner recently explained your rights to refunds, returns and repairs on high street goods.

However, the rules governing online shopping are different: in addition to the normal consumer rights Donna outlines, those who buy goods over the internet are protected by the Consumer Protection (Distance Selling) Regulations (DSRs), 2000.

Here's what you need to know:

 You must be supplied with clear information about the goods on offer before you buy them. You should also be given transparent information about their cost, including the price of delivery.

 As soon as you have made your purchase, you should receive written confirmation of this in a durable form (for example, an email that can be printed).

 As an online shopper, you have stronger cancellation or `rejection' rights than someone who buys goods on the high street. Unlike with an item bought from a shop, you are entitled to cancel an order or reject goods simply because you don't like or don't want them during a `cooling off period'. Usually, this lasts for seven working days after your goods have been received -- but if the seller has not supplied you with written confirmation of your cancellation rights, this period can be extended.

 If you choose to cancel an order or reject goods during the cooling off period, you are entitled to a full refund.

 If you choose to reject the goods you have been sent, you do not necessarily have to pay for their return. However, you will be liable for this cost if the company's terms and conditions state clearly that you must foot the bill.

 If the goods you have ordered have not been delivered within thirty days (or by the date originally agreed), the `contract' you have made with the seller is void and you are entitled to a full refund.

Exceptions to the rules

It's important to be aware that certain online transactions are not covered by the DSRs. This includes purchases made via an online bidding process, such as through eBay. You can find more information about exceptions to the DSRs at the Consumer Direct website.

Online shopping is better!

For me, the enhanced consumer rights that come with online shopping are like the icing on an already tasty cake.

As long as you shop safely, you can achieve better bargains by buying things over the internet -- and you also have more legal protection, should anything go wrong.

So what do my fellow Fools think? Will you feel confident enough to shop online this Christmas? Why not share your thoughts in the comments space below.

More: Your Rights To Refunds, Repairs and Replacements | Twelve Tips To Keep You Safe Online | Cut The Cost Of Christmas Shopping