FIGHT BACK! BY DAVID HOROWITZ

Shopping in Cyberspace

        One American household in three now has a personal computer. And for the  nation's 
retailers, that represents a tremendous untapped customer base for online  shopping services. 
Shopping by computer is a natural extension of catalog and  television sales. Instead of filling out 
and mailing order forms or waiting for a particular  item to be shown on TV, shoppers in 
cyberspace can scan catalogs and place orders  directly from their computer by means of a 
modem connection to the retailer's  mainframe.
        In the past year, online services like Compuserve, American On-Line and  Prodigy have 
greatly expanded their shopping services. JC Penny and Spiegel  already have extensive product 
lines available by computer. Lillian Vernon, one of the  nation's largest mail-order houses, offers a 
CD-ROM that contains catalogs from a  number of different retailers.
        Last September, the Home Shopping Network (HSN) announced it had bought  the Internet 
Shopping Network. Industry analysts say it's a good match, since HSN  already uses the type of 
computer system needed to process online ordering. QVC  has also announced plans to enter the 
cyberspace marketplace.
        In northern California, Safeway Stores is running a pilot project that allows  customers to 
shop for groceries by computer. Access to the system is provided by an  interactive service called 
Peapod. Subscribers can dial in, browse the aisles at  Safeway, shop for specials, compare prices 
and place their orders right on their own  computer screens at home. Groceries are sold at normal 
retail prices (less any  promotional discounts) and delivered to the customers' homes by Peapod 
drivers -- all  for a flat monthly fee of $29.
        In spite of all the hype for high-tech retailing, however, shopping by computer is  still in its 
infancy. More development work needs to be done before online services  can rival mail-order 
and store shopping. For one thing, the so-called "user interface" is  still somewhat clumsy. 
Shoppers must be savvy computer users to find their way  around on the Internet. Easy access 
will be an important factor in the future of online  retailing.
        The technology will also have to be more reliable. Right now, if there are too  many people 
using the service at one time, orders can get lost, the retailers' computers  can overload, and the 
customers' connections can crash in the middle of a shopping  session.
        Companies will also have to learn innovative ways to use interactive computer  systems to 
sell their products. Simply putting catalog pictures online is no great  improvement over the 
catalogs we get in the mail. Computers must provide something  catalogs and TV shopping shows 
cannot -- personal service. For example, when  shoppers can use computer modeling to "try on" 
various styles, colors and fabrics in clothing before they buy, that will be a real step forward in 
cyberspace marketing.
        We're not there yet -- not quite. Online, interactive computer shopping is still  evolving, 
expanding and looking for its niche in the American marketplace. And those  retailers who get 
there first with the best products, prices and services will have a huge  lead on the competition.
        If you have any questions or comments, please write to David Horowitz in the  Consumer 
Forum+ (go FIGHTBACK). COPYRIGHT 1995 CREATORS SYNDICATE, INC.