The report reveals a notable disparity between companies’ confidence levels in digital platforms for selling goods and consumers’ comfort in utilizing them.
Titled “Crossing the E-commerce Trust Divide,” the report identifies a significant trust gap, particularly among consumers who have embraced social media commerce sites. A striking 85% of respondents in this category express trust in social media marketplaces. In stark contrast, a substantial majority of e-sellers exhibit distrust in these platforms. Key areas contributing to this lack of trust include inventory management (75%), handling refunds and returns (69%), shipping and fulfillment (67%), payment processing (65%), and security and privacy (58%).
Moreover, the report highlights concerning experiences encountered by online shoppers who engage with both e-commerce and social media platforms. Three-quarters of respondents report experiencing financial fraud, while over half (55%) have encountered payment losses due to glitches. Additionally, more than two in five (42%) frequently receive damaged goods, highlighting the challenges faced by consumers in the online shopping landscape.
A significant finding from the report indicates that consumer confidence in making online purchases could be enhanced with the presence of insurance coverage. The prospect of insurance provides reassurance to consumers navigating the complexities of e-commerce transactions.
Insurance boosting consumer confidence, says Chubb
Chubb’s report highlighted several significant findings, one of which emphasised that a majority of consumers believe that having insurance would boost their confidence when making online purchases. Seven out of ten consumers expressed interest in obtaining coverage, particularly to safeguard purchases like electronics, home appliances, exercise equipment, and clothing. Despite being price-conscious, most respondents indicated their willingness to allocate one percent of the item’s price for insurance.
According to the report, payment security ranks as the utmost concern for consumers, with nearly eight out of ten shoppers worldwide prioritising the security of the payment platform. Interestingly, the increased trust in social media marketplaces extends across generations, encompassing individuals from Generation Z, Millennials, and Generation X, demonstrating a greater comfort level with social media commerce compared to other sales channels.
Furthermore, the report revealed gender disparities in social media shopping habits, with men utilizing social media platforms for shopping at a higher rate than women, with a 61% to 31% margin. Notably, Gen Z, the youngest demographic surveyed, engages in social media shopping at twice the rate of Gen X shoppers.
Regional variations were also observed, with Latin American consumers demonstrating higher frequency in purchasing from e-commerce platforms compared to their counterparts in North America, Europe, and Asia.
Amy McNeece, Senior Vice President, Digital Consumer Partnerships for Chubb in North America, said: “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.
“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.”
“Latin America’s fast-paced online shopping reveals a savvy digital consumer,” said Gabriel Lazaro, Executive Vice President, and Head of Digital for Chubb’s international general insurance business.
He continued: “This has been driven by mobile and social media leapfrog behaviors during the last decade. The emerging middle-class consumer has access, thanks to e-commerce platforms, to a wider and broader range of services than through traditional channels.”
“Latin America’s fast-paced online shopping reveals a savvy digital consumer,” said Gabriel Lazaro, Executive Vice President, and Head of Digital for Chubb’s international general insurance business. “This has been driven by mobile and social media leapfrog behaviors during the last decade. The emerging middle-class consumer has access, thanks to e-commerce platforms, to a wider and broader range of services than through traditional channels.”
McNeece added: “The availability of online insurance can contribute to building and maintaining trust. That’s particularly true for smaller businesses that need to think about how to build and protect their brands and get repeat customers.”
