Question

In: Finance

Why customer trust and loyalty is the problem for online retailers?

Why customer trust and loyalty is the problem for online retailers?

Solutions

Expert Solution

A online retail deals with selling the product online. Getting a customer base in online is diificult due to various reason such as new to market, customer trust, cost of products etc. So for gaing a stable customer base they always provide a huge discounts and cash back and other types of loyalty programes. A online retailers can be of 2 types, the one who sell his own product and the other who act as an intermediary to bring buyer and seller together by giving them a platform.

There are major problems for a online retailers to get customer trust and loyalty as because of the following reasons-

A customer while shoping online they only be able to view the product, the cant feel or touch the product. So many times customer does not experiment on the new product and limit their purchase to the product which they are familier. This creates a limitation in scope of trust for the customers.

A customer does not know from whom they are buying the product, so this cause a gap between relationship of buyer and seller which creates an obstacle in building trust

A customer would may find payment option very difficult or insecure. There can be reason such as payment link error, downtime of websites and if there is any type of error in terms of payment a customer will never comeback to that website. So this is a major factor in terms of trust. Nobody likes to loose its money whether due to fraud or not.

Since online retails involves transportation of goods, A customer may get its good damaged in transit. This also creating a lack of trust as the customer can believe they sent only damaged goods.

There are various other limitation of trust, to overcome this obstacles you need to follow up your IT team for providing smooth and easy access to website, Easy and secure payment options and a very strong team of Customer support to provide support in minutes.


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