Team 5
I. Intro
In the 21st century, with the boom of ecommerce, every online store needs to
focus on building customer’s trust. If your customers have no trust in your store, they
will be hesitant to make purchases from your site.
So what does trust mean for ecommerce? Each customer has a different idea of
what makes a reliable online retailer. Some customers might decide they trust the
business because it provides friendly customer service or fast and low-cost delivery ,
while others might believe it is due to the wide range of products offered or the
availability of free delivery options. Ultimately trust provides customers a sense of
security.
For instance, they feel assured that they are browsing on a legitimate website, they
are confident that the products they are buying are real, they feel satisfied with the fair
price for what they are buying and receiving or simply they ensure that what they are
buying will arrive safely.
Unfortunately, according to a global survey from the Centre for International
Governance Innovation, almost half of all respondents say they don't trust online
shopping. The same issue has occurred to SHOPEE - one of the biggest ecommerce
markets in Viet Nam. The statistic shows that the percentage of people using Shopee’s
ship cod as their major choice is about 62%, so there still exists a number of buyers who
do not totally believe in this service of Shopee.
Therefore, in this article, our group will discuss the brand crisis: Losing Trust On
Ecommerce. The reason why it happens? How does this problem impact the brand and
some ways the brand should do to go through the crisis.
II. Why?
Consumer Sentiment
In Vietnam, the need to change buying behavior from offline to online is also one
of the barriers to the ecommerce industry and Shopee, to be specific. There is a group of
people at the middle aged and above, which accounts for 60% of Vietnamese
consumers, tend to see and touch what to buy. They believe their eye-process can ensure
more quality and conformity of the product. Therefore, they never trust any online items
because of unmanageable-value. As a consequence, it is too challenging for each e-
commerce company to persuade this number of buyers.
Exaggerate advertising
In a temporary life, each company gets used to allocating a small amount of
money on hiring KOL (key opinion leader) in order to introduce their product.
However, as a matter of fact, some influencers are likely to exaggerate the qualities of
goods for more tips. That is also the reason why customers have gradually lost their
belief in this kind of marketing.
III. Effects of losing trust from customers:
Criticism can have a “domino effect” which makes Brand followers or
other shoppers no longer continue choosing Shoppee for online shopping. They may
decide to use other platforms like Tiki or Lazada instead. Therefore, there will be a
significant reduction in the number of customers, leading the avenue of the brand or
the retailers to be adversely influenced.
Such negative impressions can make new users reluctant from experiencing
Shoppee. It is obvious that no one will select an E-commerce trading floor with a bad
reputation for their first online shopping experience for sure.
IV. Solution
First and foremost, transparency is one of the crucial factors influencing customer’s
trust. A transparent business is a corporation that sympathize, appreciate, and make
effective implementation of sharing mission, core values and operating procedures of
both company and employees. Before making decisions that can have strong impact on
business, it is important to announce and ask for staff members’ opinion. When
employees have permission to know more information about their company, they can
have incentives to work harder.
Secondly, businesses should put them self into buyers’ position to understand how
the problems influence on them and what solutions they want from companies. It is
necessary to give them an exact answer immediately. Then, give a sincere apology to
occupy people’s sympathy and get customers’ trust back. Any big company can easily
make people know about their announcements by posting them on social medias. After
that, businesses should read reviews of people that are influenced by the crisis and
understand what they have to do to solve the problems.
Fixing issues is the next step companies should follow to building people’s trust
after losing them. It is time to discuss with marketing, business, customer care teams and
offer some appropriate solutions. Announce their buyers about what businesses will do to
improve their brand and how they can make it possible. Then, do not forget to listen
customers opinions.
