Building E-Trust

Computerworld - E-commerce is here to stay. We need only look at the history of Dell Inc., Amazon.com Inc. or eBay Inc. for undeniable proof that it's a growth industry. But could it be better? Has the media coverage of e-commerce flaws as they relate to scams, identity theft, massive violations of privacy and lax security resulted in a fundamental lack of trust in e-commerce?

In a 2002 survey conducted by Yonkers, N.Y.-based Consumers Union of the United States Inc., only 29% of 1,500 U.S. Internet users polled said they trust Web merchants—far fewer than those who trust brick-and-mortar retailers. Society has only begun to explore the real potential of e-commerce. While many people are content to purchase books and CDs from well-known sites such as Amazon.com, they are less likely to delve into online auctions because they don't trust the system, nor do they buy from smaller, less-well-known sites, even when those sites offer a better deal.

E-trust comes in two flavors: trust in the trade and trust in the trader. Increasing trust in the trade requires that we replicate what customers experience when they walk into stores on Main Street. To do that, Web sites need the following features:

• Security and privacy. A customer's credit card information is no more secure on Main Street than on a Web site, but because of various online security breaches, the perception is that the Internet has no regard for privacy or security. We know the solution to this problem. The necessary privacy and security measures are well defined; we just need to implement them.






• Ease of access and personalization. When customers can easily find what they're looking for, they feel welcome and comfortable, and they're more likely to hang around to buy something. Think of user personalization and user friendliness as the Web equivalents of the greeters at Wal-Mart who are there to direct you toward what you need.






• Order status. Main Street has an advantage. When you buy something, you usually take it with you. The entire trade is completed in minutes. E-commerce sites must compensate for delayed delivery with status updates. For example, Canada-based online retailer Chapters.Indigo.ca sends e-mails not only to confirm that an order was placed, but also to inform customers that shipments have left the warehouse. FedEx.com uses the Internet to let customers check the status of shipments at any point in its delivery process. In both cases, e-trust is increased via the flow of trade information.






• No charges until shipped. All e-commerce sites could improve customer service and trust by delaying credit card charges until the order has shipped. These are simple approaches to e-trust, but the real issue isn't the trades that go well, but the trades that go astray. How is the customer treated when a problem occurs?