Lack of trust sees consumers unwilling to spend more than £1000 online – but marketplaces have the edge

Despite ecommerce growing rapidly and continuously, consumers still don’t trust most brands enough to spend more than £1000 online – although if they trust anyone it is going to be marketplaces.

Research by e-commerce agency, PushON of 1000 UK shoppers finds that customers would feel more reassured to part with large sums of cash on the web if they trusted the retailer and knew exactly what they were getting for their money.

68% would be more inclined to spend larger amounts online if retailers could reassure them that they would receive the same quality of service online as they do in store, for instance, by offering next or same day delivery, in depth product information and accurate images or realistic videos of the product.

And marketplaces seem to be in prime position to offer this, because they do offer some of the trustworthy customer service elements that many shoppers crave.

“If we look at huge marketplaces, like Amazon and Ebay, they’ve done a great job at building trust in their brands by providing complete transparency with their sellers. Whether these sellers are third-party vendors or the brand’s own merchants, consumers feel more comfortable buying from them as they can select a range of reliable delivery options, compare prices between different vendors, and are offered high levels of purchasing security. For instance, if an item isn’t delivered or isn’t as advertised, then the customer will always get their money back thanks to Amazon’s excellent returns policies. With marketplaces leading the way in reliability and trust, lone retailers have some work to do to prove that they can offer similar levels of service and quality, otherwise they’re going to be losing out on sales.”

Sam Rutley, managing director of PushON

The trustworthiness of marketplaces is also reflected in MBLM’s Brand Intimacy 2018 Report, the largest study of brands in the US based on emotions, It finds that, while Apple comes out on top again, Amazon and BMW were the second and third most intimate brands in the US. The Top 10 being rounded out by: Jeep, Disney, YouTube, Target, Netflix, Whole Foods and Google.

In fact media companies have come to dominate the ‘trusted brands’ sector in the report, although interestingly among women, the most trusted brands are retailers. Apple and Amazon are widely trusted, however, across all demographics pretty much equally.

“Our collective need to escape, cocoon and be entertained is growing, particularly with those 35 and under. Brands that are optimizing content for our preferences dominated in 2017 by creating strong bonds and powerful connections. We expect this trend to continue in 2018.”

Mario Natarelli, managing partner, MBLM,

So how can retailers build trust? According to PushON, at the moment, 47% of people only feel comfortable researching products online to help make a decision, but would then go in store to buy because they feel they can make a better, informed choice and have the option of asking for help from retail assistants. Yet, for those shoppers who have bought considered purchases online, few have come across any problems. Two thirds (67%) have never experienced any issues when buying on the internet, proving that online shopping is actually more reliable than people seem to think.

In fact, online shoppers claim there are lots of advantages to making purchases over the web. Two thirds (67%) of those who prefer to buy online believe it is much quicker and easier than buying in store, and over half (57%) think purchasing online is a great way to properly research a range of options, without having to take the time to travel to lots of different stores.

45% like that they can select a delivery time that fits in with their busy lifestyle when buying online, which also removes the hassle of transporting goods home from the store. A quarter (24%) also like the fact that you can immediately find out what products are in stock and what’s not when shopping online.

“It’s clear that there are a wealth of advantages when shopping online, compared to in store – but the challenge for retailers is making these propositions clear to shoppers to break the barriers that are stopping people from making higher value purchases on the internet. Encouraging more shoppers to part with larger amounts of money online requires a huge focus on building trust and a strong brand reputation. Consumers will feel more reassured if they know exactly what they’re getting from the retailer and that they’re reliable. It’s about creating the same experience, regardless of if the purchase is made online or in store – customers should always receive the same great level and quality of service.”

Sam Rutley, managing director of PushON