Consumer’s shopping behavior has changed drastically since our society enters this new era of technology. In a blog post written by Grace Ng, she mentioned about how shopping through Instagram has became a trend in Southeast Asia.
While eCommerce (e.g. eBay, Taobao, Amazon) is familiar to most people, Instagram shopping is fairly new. The increasing penetration rate of social medias has created this new transaction model. It rides on the tail of a growing social media, and generates profit by taking advantages of online communication and cheap shipping in Asia.
The convenience and affordability of Instagram shopping suggests a high potential growth rate of eCommerce in Asia. However, it comes with negative consequences including…
1. Lack of privacy and security
Since customer’s information is easily accessible, sellers can send targeted advertisements. Also, electronic transaction opens a door for credit card fraud and identity theft.
2. Price War
Since selling through social medias does not require some explicit costs (e.g. rent), suppliers are more able to sell at a lower price. A price war could result from such a competitive market.
3. Returns and Complaints
As a e-shopper myself, I have experienced dissatisfaction of the product many times. Shopping online does not give customers comprehensive nor reliable information about the product, instead, it serves more like an advertisement. Return policies are usually tricky and only favorable to sellers.
I can see social shopping is gradually taking over the conventional shopping pattern. However, I am concerned of the dangers associated with it. Governments or organizations, as the third party, should intervene to protect social welfare.
