New research conducted by detected, the global mark of trust in eCommerce, has found a significant increase in buyer demand for transparency when buying online, with 84% of customers researching business credibility before completing a purchase.
The pandemic has sparked enormous growth in the eCommerce market. According to the ONS, online sales rose to a record high of 33.9% as a share of all retail spending in 2020, climbing from a 20% pre-lockdown in February 2020.
But despite market growth, competition is high. And buyer trust is in decline.
According to detected’s research, 40% of people surveyed said that their trust in brands had declined over the past three years. This is compared to less than 10% who said it had improved and 54% who said it was unchanged since 2018.
Liam Chennells, Chief Executive Officer at detected, said, “the decline of buyer trust over recent years shows that whilst eCommerce sales have risen, this has been at the expense of consumer confidence. The evolution of online shopping has to be fixing the relationship with the customer by providing evidence of seller credibility.”
Reviews Aren’t Enough
Of those surveyed, 60% said they trust online reviews less than they did three years ago. Fake reviews are to blame for the decrease in trust in eCommerce.
According to BrightLocal data, 82% of consumers read a fake review in 2019. Among 18-34-year-olds, the proportion is even higher, with 92% saying they’ve seen fake reviews.
To tackle this issue, review authentication platforms like Trustpilot are restoring faith through transparency. In 2020, the company identified and removed 2.2 million reviews, as published in its transparency report.
But to solve the trust problem, more insights are required. Customer opinion is one part of the puzzle; verified business credentials are another.
Trust Converts Buyers
detected found that 98% of people would be more likely to purchase from a business if given more information.
Chennells continues, “Trust sells. Consumers want as much transparency and reassurance as possible, whether they are shopping online for themselves, their loved ones, or the businesses they work for. This research shows that investing in trust puts marketplaces ahead of their competition.”
According to detected’s research, when asked what are the most important factors in their decision to buy from a new brand on a marketplace, trust (22%) was cited as second only to price (61%), followed by delivery and returns (17%).
detected is solving the trust in eCommerce problem by surfacing critical data about online sellers. Trusted by marketplaces around the world, buyers simply tap the detected icon to verify a seller. The company was born after Chennells was faced with untrustworthy sellers when sourcing PPE at the start of the Covid-19 pandemic in March last year.