Table of content
- Abstract
- Introduction
- Definition of Trust in E-Commerce
- Role of Trust in E-commerce
- Privacy and Security of Customer
- Authentication of E-commerce website
- Constructing Trust in E-Commerce
- Law Related to Trust and Distrust
- Conclusion
- References
Abstract
The most important component in deciding the achievement of e-commerce is trust. Trust is the most important ingredient for viable transactions. In the construct of trust, the trustor i.e buyer trusts the trustees i.e intermediaries and different sellers. Intermediaries/sellers provide a web-based infrastructure that enables buyers and sellers to make transactions. Trust itself is the personal judgment of the buyer and comprises two distinct concepts; both trust and distrust are occupied by the trustor. Since online shopping largely differs from conventional stores i.e physical stores, it is captious for online vendors and dealers to realize the actual factors that impact customer trust and belief A recent study found that trust is a major component that can impact consumer preference in e-commerce. To that end, the objective of this article is to look into and point out the clear factors of trust and distrust that are valuable to consumers.
Introduction
In the current century web-based e-commerce system is the most enormous transaction platform on which vending or selling products or services to a large number of potential buyers is quick and simple. Although it has successfully replaced traditional businesses i.e physical shops. E-commerce involves many risks such as the condition of the product received during the time of delivery they also suffer damages and defects of the product.
They also suffer from desires and financial risks. Consumers are often afraid that they may be victims of fraud when they buy products online.40% of the consumers said that they were afraid of e-commerce fraud. This article explores the concept of trust and distrust in e-commerce and how consumers are cautious of the products and services they avail online.
Definition of Trust in E-Commerce
Trust is a belief in the system’s characteristics, specifically belief in the competence, dependability, and security of the system, under conditions of risk.
Trust itself is the buyer’s judgment.
Role of Trust in E-commerce
Trust plays a vital role in consumers’ decisions to buy a product and promote your product. Sometimes customers become brand ambassadors of products because of the benefits and faith they have received and the belief they have gained in the business. In e-commerce, the interaction of two parties is virtual rather than physical, And trust constructs the relationship between vendor and consumer, which built a strong network and helps to enhance the product feedback through which other consumers can easily desire to buy the product. A buyer won’t buy products from you unless he or she trusts you.
When the buyer trusts you, the buyer believes in your commitment. When you fulfill the demand of buyers, their feedback empowers you and they become your ambassador. That’s why trust plays a significant role in e-commerce.
Privacy and Security of Customer
E-commerce trust is built on the estimation of customer data protection. Protecting the privacy of the consumer is an essential key to ensuring human dignity, safety, and self-determination.
The most common security threats are
- Electronic payments system
- E-cash
- Data misuse
- Credit/debit card fraud
- Hacking
In e-commerce, there is some factor to build trust.
- Protect the customers’ data security and privacy
- Reduce uncertainty
- Full-fill the customers’ product expectation
- Enhance the design of the website
- Work on content marketing
Five basic security Principles
- Confidentiality.
- Integrity.
- Availability.
- Authenticity.
- Non-repudiation of user data.
Authentication of E-commerce website
Authentication is the process of confirmation that users are who they say they are.
Passwords are the most common methods of authentication, apart from password-based authentication there are some other methods of authentication such as
- Biometric type authentication
- Certificate-based authentication
- Multi-Factor authentication
Constructing Trust in E-Commerce
Several ways to build consumer trust.
- 1. Describe your product briefly
- 2. Be genuine and transparent about the product
- 3. Cognize your target audience
- 4. Portion out positive reviews
- 5. Make and share audio/video testimonials
- 6. Place a face to the name
- 7. Offer strong customer service
- 8. Build a reputation
- 9. Share uncomparable practices
- 10. Be contactable and reachable
- 11. Construct a social trial impression
- 12. Maintaining the availability of the product is easy.
- 13. Reply and respond to customer feedback
- 14. Provide Loyalty programs
- 15. Don’t compromise the quality of the Product
Law Related to Trust and Distrust
There are Nine chapters and 96 sections in Indian Trusts Act, 1882
Definition of trust in Indian Trusts Act, 1882
Section 3 of India trust Act, 1882 deals with the definition of a Trust
A “trust” is an obligation annexed to the ownership of property, and arising out of a confidence reposed in and accepted by the owner, or declared and accepted by him, for the benefit of another, or of another and the owner: “author of the trust”; “trustee”; “beneficiary”; “trust property”; “beneficial interest”
Chapter XVII of the IPC deals with offenses against property and Section 405 to 409 of the IPC deals with criminal breach of trust.
The legal section involved in e-commerce such as
- Section 84A of the IT Act, 2000
- Section 43A of the IT Act, 2000
- Section 94 of the Consumer Protection Act, 2019
Conclusion
The very fast progress of IT and the widespread accessibility of the internet have enlarged the popularity of e-commerce. The motive of this article is to make consumers’ perceptual experience positive towards e-commerce. This article also emphasized consumers’ experience while purchasing products online and how consumers can deal with fraud and risk while online transactions and the security of their data .this article made the things very easy to deal with a data breach in e-commerce, consumers can follow some steps to avoid the risk on e-commerce and sustain their trust on the web. E-commerce sites should also make sure that the data of consumers must be protected and can be used for wrongful purpose which troubles the consumer and generate distrust in e-commerce platforms. According to this article, it is favorable to understand and study the factors that build trust between consumers and sellers to better realize their perception of online trust.
References
- Ravindran, M. (2022, January 28). ISSUES OF TRUST AND DISTRUST IN E-COMMERCE. Indian Journal of Corporate Law and Policy. Retrieved February 3, 2023, from https://ijclp.com/issues-of-trust-and-distrust-in-e-commerce/
- https://indiankanoon.org/docfragment/123092336/?formInput=e%20commerce
Author:
Shubham Singh – Yashwantrao Chavan Law College, Pune
Savitribai Phule Pune University.