My suspicion is that many e-merchants who are teetering on the brink of failure will hang in there at least through the holiday season. The firm's surveys indicate late delivery is by far the biggest reason given for loss of repeat business in online categories. About 90 percent of online purchases are done by credit card. In those cases, buyers can recoup their money, but there are hassles and delays. And the holidays present firm deadlines for gift-giving.
Consumers can take precautions.
They can search out contact information and familiarize themselves with corporate policies on Web sites, and then check merchants with consumer agencies and rating sites. But this is hardly a complete answer. Also, not all companies about to fail leave a trail of prominent red flags. WebHouse Club, though the grocery and gasoline seller is winding down rather than stealing into the night. Analysts say there's no way the prolonged financial chill can avoid hurting online sales.