Financial Risk - customers fear that they will order something from an Internet retailer, pay for it in advance using credit cards or electronic transfer, and never receive the goods. Functional Risk - customers fear that items will not function as advertised resulting in costly and prolonged wait for the items purchased. In some instances, items are returned at the purchaser's expense, until the reason for return is validated. This additional expense may ultimately be repaid, but may be much later than what the purchaser would prefer. The consumer is responsible for doing market research, price comparisons, and evaluations of quality and suitability.
Most customers have questions, but there is no one to answer the question.
This causes customers to visit the site, peruse the offering, but exit without making the purchase. Sales Taxes - currently, no taxes are charged on Internet sales, if a physical presence is not established in the purchasers taxing jurisdiction. The Internet Tax Freedom Act of 1998 has a three-year moratorium prohibiting new taxes, or raising existing taxes on Internet access or communication systems. Transportation Costs - transportation from the Internet seller to the consumer adds costs that the buyer may not be readily able to accept. In addition to freight, there are related items such as handling, insurance, and the delay between the purchase and receipt of the good.