There is no question that the internet has revolutionized the way we shop. And why not? Not only can you can shop at 3 a.m. in your pajamas on your worst hair day, even if you have a communicable disease but there are a plethora of online e-tailers vying to be the one to make your wallet cry. With so many shopping choices, and new ones making the scene all the time, how do you know if one is reputable? According to a recent National Retail Federation press release (Shop.org), online purchases of cosmetics and fragrances are expected to experience growth rates over 30 percent, more than any other categories. With the growing trend of home based businesses and the growing rate of fraud, it may feel risky. A recent case of mail fraud in my own home town has affected many of my online friends and has got me thinking of ways I can protect my customers. Below are some tips to help decide the risk factor for that cute new online boutique you are considering.
What payment methods do they accept? While there is nothing wrong with taking only old fashioned paypal and on is own should not be much of a red flag, a company that has taken the effort to incorporate a credit card system of any kind (including processing that is done by Paypal such as Paypal Standard or Paypal Pro, which does not require the customer to have a Paypal account), not only has invested some time and money, but also, most likely has had to go through a credit check by that gateway company.
It really is in the fine print: Look closely at the labels, past the cute artwork. Does the company follow the FDA guidelines for labeling? Some things that should be included on all products applied to the skin are a full list of ingredients, size, directions for use and any warnings as well as the city, state and zip code the product was made in. Why is this important to your pocket book? Because an e-tailer that has taken the time to be educated on FDA regulations and to implement them show that they care about quality and are in it for the long haul.
Check the reviews: This one may seem obvious, but consider this: most word of mouth is positive; 80% of product ratings are 4 or 5 stars out of 5 in the us 88% are 4 out of five stars in the UK (J Curve, Bazaarvoice and Keller Fay). When people like something, they want others to know! Additionally, 61% of people rely on user reviews for product information or research before a buying decision is made (Razorfish, 2008)
And 84% of consumers said they were more likely to check online for reviews before making a purchase compared two 12 months ago, according to a recent survey by Brand Reputation (Retail Bulletin, October 2009).
Search them: Don’t just rely on website reviews. Do an engine search for other feedback. Check places like Artfire and Etsy to see if they have additional shops. Check for comments on Facebook and Twitter and read reviews on places like Make Up Alley.
Just ask: If in doubt, there is nothing wrong with asking to see a business license (keep in mind though that some cities do not require this), business registry certificate or insurance certificate. A sketchy business person will not have a paper trail and it is unlikely that they will have put forth the time and money to obtain these.
I need to reiterate that this is just a guide. There are many new companies just starting our or small hobby soap makers this will always wish to remain small. It should go without saying that just because someone uses Paypal exclusively or leaves the city off their labels doesn’t mean they are going to rip you off. However, if you notice that several things don’t jive, you should take everyone’s mother’s advice trust your instinct.
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