New Monetha video series!
We have decided to release our new video series and discuss many topics that we deeply care about: trust and reputation in e-commerce, blockchain, payments, cryptocurrencies, and many others.
Today, we present the video about trust issues for online buyers.
We all noticed the growth of e-commerce in the past years: shopping online saves time, it is cheaper and more convenient; no wonder why it’s getting more and more popular. As you can see in the graph below, e-commerce sales almost doubled since 2014.
According to a study by Taylor Nelson Sofres, customers will terminate 70% of online purchases due to lack of trust (source). This paucity of trust leads to a loss of $1.9b+ annually.
E-consultancy declares that 88% of customers will check out reviews before making a final decision on a purchase. According to studies, 72% of consumers trust online reviews as much as personal recommendations (Local Consumer Review Survey, 2012).
Main Trust Issues when buying online:
– Fear of late delivery (20% of people have issues with late delivery)
– Fear of not receiving an item or receiving the wrong one
– Uncertainty of money-back guarantee and distrust of returns policy
– Trustless and poorly designed web interference with poor design
– Anonymity of the merchant and lack of presence on social networks
– Fear of fake reviews or no reviews
– Fear of making online payments and giving credit card details online.
Nowadays, some of those issues are being solved by allowing users to leave ratings for the products, however, we believe that the systems of these ratings are flawed for several reasons:
– Ratings are owned by centralised marketplaces (if a user is selling something on Amazon and wants to move from Amazon to Alibaba, they need to build their reputation again on a new platform)
– Ratings are easy to manipulate
– Ratings are not necessarily linked to a payment or payment fact.
At Monetha, we believe that all of these problems that are being really exploited in e-commerce because of the lack of trust and reputation, can only be solved with the power of blockchain, which is immutable, transferable and universal.