Shopping online is tremendously convenient for consumers – the web enables them to make purchases without ever having to leave the comfort of their own home. However, this also opens the door to fraud, which is a significant risk that consumers have to take whenever they submit their data over the internet.

Retailers need to walk a fine line between offering too much fraud security and not enough. According to a recent survey by Accertify, 28 percent of customers have encountered excessive anti-fraud procedures that denied or delayed their transactions. Conversely, consumers are likely not to shop with a retailer at all if they have no fraud prevention measures in place.

"It is clear that narrow fraud programs can actually push legitimate customers away," said Jeff Liesendahl, senior vice president of Accertify at American Express. "Merchants with inflexible fraud prevention technology or who manually review every suspect transaction end up delaying and denying legitimate transactions."

Retail merchants should put themselves in the shoes of their customers when trying to streamline the online shopping experience. What would drive them to competitors? Conversely, what could be done to enhance it?

The worldwide web has changed how many companies do business, not the least of which is the retail sector. Now, it is seldom good enough to simply have a brick-and-mortar store – today's merchants need to also have a website shoppers can use to make purchases. If they are really progressive, they will even have a mobile site or app.

For the most part, the online shopping experience is a positive one, regardless of whether consumers go online or in store. People shopping online are enjoying a smooth purchasing process – products are being shipped promptly and arriving on time in good condition. It's the return procedure that is plaguing many online retailers, according to new data from Innotrac.

The fulfillment vendor places a number of orders with more than 120 different internet retailers and graded the shopping experience on a scale of 44 points. The company looked at key indicators, such as customer service availability, order confirmation communication, shipping options and the quality of their goods upon arrival. Big-name retailers, such as Target, Best Buy and Sears, were among some of the brands analyzed.

Innotrac's research found that 66 percent of orders placed arrived within three days, 22 percent were delivered in four and only 2 percent came after day seven, suggesting many retailers have a well-planned shipping solution in place.

However, when products were returned, merchants were not as quick to respond. While nearly one-fifth (19 percent) did issue refunds within five days of receiving the returned product, many took even longer. In fact, nearly the same number (16 percent) took 20 days or longer to issue a full refund.

"The fact that 16 percent of retailers take more than 20 days to issue a credit shows that there are still some issues and that that process is not as expedient as it should be," says Jon Eggleton, vice president of marketing and ecommerce for Innotrac.

Because January is typically a slow month for retailers, now is the perfect time to hash out a better return policy if business owners don't have one. While many merchants are focused on making the sale, it's equally important to have a process in place for handling returns if retailers want to ensure the customer comes back to make future purchases.

Retail software and store operations are constantly adopting, implementing and accommodating new technologies. With the growth in mobile device use, retailers are finding mobile coupons to be a lucrative sales strategy.

According to a recent study from Juniper Research, redemption rates of global mobile coupons will average more than 8 percent by 2016. This growth is spurred by greater usage of mobile coupons in North America and Western Europe, which is expected to bring the global population of coupon users to 60 million.

However, the study found that growth is not assured. The technology is currently going through an experimentation phase, as companies determine how to connect with consumers.

"As with all new mass markets there is an initial 'shakeout' period," said David Snow, author of the report. "For the next few years users will be signing up to multiple coupon schemes and deciding on the ones they like best – so now is a crucial time for mobile marketing agencies to get it right on behalf of their clients and establish a loyal customer base."

Retailers are also partnering their mobile strategies with social media and other web-based platforms to connect with consumers no matter where they are.

Retail POS technology may see increased use over the next few weeks, as experts predict an increase in sales for Valentine's Day.

Research from IBISWorld predicts total sales for the romantic holiday to rise by 0.5 percent over 2011 figures this year, with a return to dining and getaway purchases as well as jewelry, flowers and candy.

The study notes that jewelry will see another year of solid growth. Sales are expected to rise by 5.2 percent to total $1.6 billion, following last year's large 9 percent growth. Additionally, candy sales will increase by 3.6 percent coming to $2.7 billion for the holiday.

Restaurants are poised to be the big winners this Valentine's Day, though. "Restaurants are likely to see the biggest boost this year with sales slated to increase by 6.1 percent to an estimated $9.5 billion," the study found. "Consumers are anticipated to return to dining out, which will be led by restaurants' initiatives (including special courses for the holiday and prix fixe arrangements)."

In the past five years, technologies have changed rapidly driven by advancements in mobile devices including the smartphone and the tablet computer.

According to a recent talk given by eBay president and CEO John Donahoe at the Digital Life Design conference in Munich, retailers should expect to see continued evolutions in their retail point-of-sale software as well, the website Venture Beat reports.

"I believe that you’re going to see more change in how consumers shop and pay … in the next three years, than we’ve seen in the last 20 years," Donahoe told conference attendees, according to the source.

Much of this change will be driven by retailers' need to adapt to multichannel shopping opportunities and the ability of consumers to now research products in-store on their mobile devices. Donahoe called 2012 an "inflection point in retail, shopping and paying."

Target recently took action against a mobile practice it considers detrimental to its business – "showrooming," or checking out products in-store to then purchase them online for cheaper.

Major retailer Target is taking action against an increasing trend occurring in its outlets that is troubling store operations: "showrooming."

Showrooming occurs when shoppers go to brick-and-mortar retailers to research, try out or see a product in person, but then buy it online from a rival, often at a discounted price, the Wall Street Journal reports.

In an effort to combat this shopping tactic, Target sent a letter to suppliers encouraging them to create products that would differentiate them from their competitors as well as joining with Target to match other retailers' prices.

"Target has a long tradition of getting suppliers to provide exclusive products," the source explains. "It has teamed up for years with fashion designers to offer time-limited discount clothing collections, and it recently announced it will open a series of temporary boutiques featuring clothes, food and home furnishings from popular regional stores."

Many retailers are opting for multichannel shopping as well as introducing new technologies and deals to encourage consumers to shop in-store rather than online.

For some retailers, 2011 ended on an auspicious note – while sales were up through the end of the final two months of the year, many struggled to profit due to rampant discounting and had to adjust their financial projections as a result.

Still, 2012 is expected to be a booming year for those in the sector. According to a new report from the National Retail Foundation, while high unemployment rates and the uncertain economic environment will continue to impact sales, the industry is expected to grow a marginal 3.4 percent throughout the 12-month period.

This year, retailers are forecasted to generate $2.53 trillion. While that's slightly lower than the 4.7 percent recovery observed in 2011, it is still an improvement, which is crucial considering the economic climate. At the same time, economists estimate that real U.S. GDP will grow approximately 2.1 to 2.4 percent.

As NRF president and CEO Matthew Shay notes, the retail sector has been on the forefront of the economic recovery for the past 18 months. The sector has created hundreds of thousands of jobs, encouraged further consumer spending and provided a variety of investor opportunities during this timeframe.

"Our 2012 forecast is a vote of confidence in the retail industry and our ability to succeed even in a challenging economy. Retailers have played a key role in driving growth, but to continue this momentum we need Washington to act on proposals that will spur job creation and unleash the power of the private sector," Shay explains.

Several factors are contributing to the recovery of the booming retail sector. Unemployment reached a three-year low at the close of the 2011 calendar year, the annual income of many Americans is on the rise thanks to Congressional cuts in payroll taxes and the easing of lending standards is encouraging many consumers to spend more money.

According to a separate NRF report, the retail sector is expected to come into full bloom in spring. Container traffic, which shows how much inventory companies are stocking, was observed to be flat in January compared to last year. However, in March, this figure is expected to jump 10 percent year-over-year.

While retailers may still have room for improvement with their mobile apps and websites, they are doing better as a whole than other sectors, according to a new customer satisfaction survey conducted by ForeSee Results.

Apple and Amazon had the top-rated apps of the retail sector, achieving ratings of 85 and 84 points out of 100, respectively. While Amazon's desktop site was still perceived as being better, the difference was only marginal – 88 points compared to 84. The average customer satisfaction rate for retailers analyzed is 76, significantly higher than the overall average score of 67.

"The largest gaps between web satisfaction and mobile satisfaction are for Avon, with a gap of eight points, and Walmart.com, with a gap of seven points," InternetRetailer notes, citing the report. "A large gap indicates that customer needs are not being met nearly as well in the mobile experience as they are online."

The number of Americans owning smartphones is growing quickly, with the devices currently in the hands of 91.6 million consumers.

Imported retail container traffic is anticipated to be flat this winter compared to the same time last year, suggesting many retailers aren't expecting big sales through the first few months of the year.

According to a new report released Thursday by the National Retail Federation and Hackett Associates, U.S. ports are expected to handle approximately 1.21 million 20-foot Equivalent Units, up by 0.1 percent. February is expected to be the slowest month of the year at 1.06 million TEU.

However, this spring is projected to see significant year-over-year improvements, with double-digit improvements beginning in March.

"We're headed into the slow season for cargo shipments, but forecasts indicate that retailers will be stocking up this spring in anticipation of a moderate recovery as the year progresses," NRF vice president for supply chain and customs policy Jonathan Gold said.

It's important to note that while cargo imports don't translate directly into sales, when retail merchants expect surges of activity, they tend to order more product to take advantage of the situation.

In preparing for the new year, store operations will want to take stock of their consumer bases. Who are their key demographics? What are the needs, and what are the best ways to reach them?

A recent study from the University of Georgia's Selig Center for Economic Growth may prove insightful to retailers. The research predicts that Latino, black and Asian American shoppers will spend $3.5 trillion on goods and services in 2015, representing their growing purchasing power as a consumer segment.

The San Francisco Chronicle notes that retailers such as Macy's are taking the news in stride by working with goods suppliers who specialize in these markets. Macy's cosmetics, homes goods and clothes departments will all receive makeovers to better appeal to these groups.

Furthermore, the growth in buying power also signifies a growth in the power of minority-owned businesses. The source added that Macy's predicts its sales of products manufactured by minority- and women-owned businesses will surpass $1 billion in the next two years.