E-Commerce : All About Trust

E-Commerce, the buzzword of this fin de siècle and the way of business in the 21^st century conjures up change. A notion that frightens most people, even in our physical world. When change takes on the added dimension of virtuality, electronic commerce has the formidable challenge of building trust.

The private sector needs consistent and predictable rules to operate successfully in cyberspace. And, consumers need an equal level of security, privacy and protection. Governments, businesses and organizations around the world are taking actions to build trust in electronic commerce.

To-date, the United States and Canada have generally taken the approach of applying or adapting most of their laws to cyberspace. For example, many state governments have enacted digital signature legislation such as Utah, Washington and California. On its part, Canada has recently tabled a bill to recognize electronic signatures and protect the privacy of individuals on the Net. While cryptography plays an important role in ensuring security, U.S. policy and the Wassenaar Arrangement limit its export. Also, other complex issues such as taxation, intellectual property and the legal framework in support of e-commerce will likely take time and thought to resolve.

Industry consortia and non-profit organizations are also active in promoting electronic trust. The American Institute of Certified Public Accountants has developed the CPA Web Trust Program, who audits and certifies the technology, security and business practices of online companies. And TRUSTe, an independent organization, brands by its online "trustmark" seal the web sites that conform to its privacy principles.

In this New World, successful on-line companies are actively engaged in building the trust of the electronic consumer. What giants such as E*Trade, Dell, 3Com, Travelocity, Marshall and Onsale do in this respect?

1. They build relationships rather than effecting quick transactions. This can take many forms ranging from memberships to free educational resources and community development.

2. They differentiate themselves by giving the electronic user a reason to buy their services or products, and most importantly they back their claims. Different means are used including clients' testimonials and on-line demos.

3. They offer truly quality experiences on their sites and this attests to their professionalism.

4. They manage expectations from the outset with respect to order cancellation, return of merchandises, refunds, warranties and customer support. Some make use of formal electronic contracts. Others display their sale policies or address these concerns in a question and answer format.

5. Some offer free trial services such as E*Trade and Travelocity.

The copyright of the article E-Commerce : All About Trust in Electronic Commerce is owned by Nazan Fathy. Permission to republish E-Commerce : All About Trust in print or online must be granted by the author in writing.

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