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Recent Gartner research on lost e-commerce income due to security concerns

Created: 28 Dec 2006 • Updated: 18 Dec 2012 • 1 comment
Tim Callan's picture
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Gartner reports $2 billion lost e-commerce sales in 2006 due to consumer security fears. Gartner's report is based on a study of 5000 U.S. adults. This article quotes Gartner analyst Avivah Litan, who says,

"[T]his year, more people were stopping online banking than last year and also lowering their online purchasing dollars."

According to Gartner more than 10% of adults had cut their online spending to less than half of the previous year's. That means at least a 5% overall loss of revenue for e-commerce sites and 5% lost online transations for banks. In other words, if an e-commerce site that sells $1 million worth of merchandise a year actually could be selling at least $50,000 more a year if its customers were fully confident in the security of the site.

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OnlineSecure's picture

Yes, it is a very sad situation. The early days of ecommerce raised fears between the buyer and sellers. The seller was the first to be distrusted, then frauds surfaced about fake buyers. And now you have a situation where, both buyers and sellers are worried about a fraud commited by third parties who are not a party to the online transaction at all. The phishing fraud is classic example of this. Educating consumers is the best way to reduce the damage, the best way to retain and grow consumer interest in online transactions.

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