Survey: Consumers trust e-commerce, but have concerns

A majority of consumers trust e-commerce platforms and social media marketplaces, but online sellers don’t feel the same way.

According to a global survey of 500 consumers and 525 e-sellers from insurance provider Chubb, 85% of consumers say they trust social media marketplaces. However, a large number of e-sellers don't trust social media commerce sites when it comes to managing inventory (75%), handling refunds and returns (69%), shipping and fulfillment (67%), payment processing (65%), and security and privacy (58%).

Consumers also have concerns. Among consumers who shop online through both e-commerce and social media platforms, three-quarters report they have experienced financial fraud, and more than half (55%) have had payments lost due to glitches. Nearly eight-in-10 consumers globally say the security of the payment platform is their top concern. 

Also, more than four-in-10 (42%) say they frequently receive damaged goods from e-commerce and social media platforms. Seven-in-10 consumers said they would like to have insurance coverage on online purchases, mainly to protect purchases of electronics, home appliances, exercise equipment and clothing.

"Whether it's on social media or on e-commerce platforms, the customer journey must be simple, easy and give the consumer confidence – their trust is fragile," said Amy McNeece, senior VP of digital consumer partnerships for Chubb in North America. "Delivery issues, damaged products and online scams can all shatter consumer trust in an instant, and customer loyalty is critical in the age of digital commerce."

Other findings from the Chubb survey include the following:

• Gen Z, Millennials and Gen X  tend to be more comfortable with social media commerce than with other sales channels. 
• Men tend to use social media platforms for shopping more than women by a gap of 61% to 31%.
• Gen Z shop through social media at twice the rate of Gen X shoppers. 
• One-in-four (25%) Latin American respondents shop online several times a week – twice the rate of consumers in other parts of the world.
• Nearly three-quarters (74%) of consumers visit and purchase from e-commerce platforms at least several times a month compared to 62% of North American, 59% of European and 56% of Asian respondents.