eMarketer has released a report on online privacy and security and the impact that online theft and fraud have on online retail. According to the "Online Privacy and Security: The Fear Factor" report, nearly 60 percent of the U.S. population age 14 and above does not buy online. Moreover, more than a third (36.6. percent) of internet users do not buy online. Among online "shoppers" - those who browse, research and compare products online - 15.8 percent do not buy online.

"Online shoppers are still wary of online privacy and security [issues], and clearly it affects which web merchants they trust with their business, and the strategies they employ to minimize online shopping risks," said Jeffrey Grau, eMarketer senior analyst and author of the report. For example, to avoid online threats, consumers rely on large, recognized retailers - and small e-tailers suffer as a result.

Some fears are based on misconceptions, according to the report; for example, though it's true that credit card fraud occurs more online than offline, less than 10% of identity thefts, such as stolen credit card numbers, occur over the internet.