Your money by Naomi Caine
MORE than 27 million people are expected to shop online over the festive season, turning Britain into the biggest online retail market in Europe.
Total online sales are set to reach £40 billion this year and are predicted to quadruple to £162bn by 2020 when they will account for more than 40% of all UK retail sales, according to uSwitch.com. Currently online sales account for only 15.7% of retail spending.
The convenience of the internet appeals to today's shoppers, but so too do the price savings. According to uSwitch, UK consumers could save more than £13bn a year by shopping online - that's around £500 per household.
Steve Weller, head of communications services at uSwitch.com, says: "The internet makes it easy to shop around at maybe 40 or 50 different stores in one go to make sure that we are getting the best deals. No doubt the fact that as a nation we could save a massive £13bn a year by shopping online is another reason why we as consumers have wholeheartedly embraced online shopping."
So how do you get started - and is it a safe way to shop?
Most of the big retailers have their own websites and many offer discounts if you shop online. Boots, for example, is pushing its online shop in the run up to the festive season. Alternatively, you can employ a shopping robot or "shopbot" to search out the best deals. There are a number of shopbots. Some search for anything and everything; others specialise in certain products. Kelkoo (www.kelkoo.co.uk), Shopping.com (www.shopping.com) and Pricerunner (www.pricerunner.co.uk) are probably the most well known. But it's often worth searching more than one shopbot because they all have links with different retailers.
PayPal, the online payment firm, has just launched a new shopping site where customers can receive cashback and discounts on purchases with selected online retailers, including Harrods, John Lewis and Toys "R" Us. Customers register on the site (www.paypal-offers.co.uk) for free, and receive their cashback directly into their PayPal accounts.
Some of the more popular products bought online are music, films and concert tickets. More than half of online shoppers (53%) buy music and films online; 35% buy tickets for events over the internet. But about a third purchase books, clothes and sporting goods. Grocery shopping online is also becoming more popular. There is even a website - www.mysupermarket.com - that compares the prices of different goods in different supermarkets in your area.
Online shoppers should make their purchases from secure websites they know and trust. The website address should start with https and a reputable e-tailer will include important details on the site, such as the postal address and contact number.
When you make a payment online, always check there is a closed padlock in the browser window - not on the web page itself. It shows that your details are protected when you submit them online. And never send your Pin over the internet.
Some retailers use a security system such as Verified by Visa, or Mastercard's Secure code for online payments. If so, you will be given the option to sign up to the scheme using a password to combat fraud.
If you are concerned about a website, you can check it with the Office of Fair Trading, TrustUK or the Interactive Media in Retail Group (IMRG).
We spent £2.4bn with our credit cards online last Christmas and the figure is expected to jump 50% to £3.6bn this year, according to Apacs. If you can keep your debts under control, it makes sense to use a credit card online because the card issuer is jointly liable with the retailer for faulty goods over £100.
Safety online also involves safety at home - and that means installing security software that includes a firewall and anti-virus and anti-spyware software to protect your PC. A built-in guard against spam is also helpful.
You can get an all-in-one security software package from a company such as Norton or McAfee for around £50.
Alternatively, you can buy your anti-virus, firewall and spyware software separately. You can often get a good deal online from websites such as Amazon.co.uk or Dabs.co.uk.
You can even download free security software from websites such as Download.com or Tucows.com. However, many of the free products are either very basic or need to be updated weekly.
You have the same rights online as you do on the high street. So you are entitled to a full refund if the goods are not of satisfactory quality, or the description was misleading. But it helps your case if you keep a copy of your order, plus the supplier's confirmation email or order number.
We might be feeling a bit squeezed this Christmas, thanks mainly to higher mortgage costs, but Verdict, the retail analyst, predicts a last-minute pre-Christmas surge in spending. "Shoppers never want to be seen as mean at Christmas and will postpone any cutbacks until the New Year," says Verdict's Nick Gladding.
The analyst expects electrical goods to be the star performer, particularly flat panel TVs, satellite navigation systems and games systems. And guess what? Many of us will be buying them online.
l For more information about shopping and making purchases safely online, visit www.cardwatch.org.uk Action plan 1. Check out the websites run by the big retailers for Christmas offers or discounts.
2. Employ a shopping robot to search for the best deals online.
3. Buy goods through a website you can trust - the address should begin https and a padlock should appear in the browser when you make a payment.
4. Never give your Pin over the internet.
5. Install or upgrade you PC's security software to prevent fraud.
case study
Will Butcher, a 25-year-old HR officer from Edinburgh, has just saved more than £20 by shopping online.
He says: "I am a member of PayPal, because it allows me to shop securely on the internet. I recently went onto the website and noticed they were offering discounts with a number of retailers, so I thought I'd do some shopping."
Butcher bought an electric razor from Boots and earned a £5 discount. He then ordered a canvas print of a photograph he took on a recent trip to Cornwall. "It cost £85, but I got a 20% discount, so I saved quite a bit of money. I'm planning to give it to my girlfriend, Sarah, as a present, but I won't be able to wait until Christmas."
Most online retailers allow you to buy goods through a PayPal account, so you don't have to keep entering you card details, potentially compromising your security. PayPal has linked up with a number of shops to offer discounts to customers in the run up to Christmas and you can get more details from the website
