Seven of 10 shoppers want protection for purchases but prefer low-cost

The survey also showed more trust in social media marketplaces versus the companies selling goods through these platforms.

There is a significant trust gap between consumers and companies in the e-commerce landscape, particularly with social media commerce platforms. Consumers indicate that having insurance coverage would increase their confidence in making online purchases, but still prefer the cheaper option.

“Seven out of 10 consumers would like to have coverage, mainly to protect purchases of electronics, home appliances, exercise equipment and clothing. To protect those purchases, a majority say they would be willing to add one percent of the price of the items they buy,” according to a Chubb survey.

Both consumers and e-sellers emphasise the importance of a secure end-to-end shopping experience. Online insurance availability is seen as a factor in building and maintaining trust, especially for smaller businesses.

Whilst consumers exhibit high levels of trust in social media marketplaces (85%), there is a notable lack of trust in the companies selling goods through these platforms. 

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E-sellers express concerns regarding inventory management (75%), refunds and returns (69%), shipping and fulfilment (67%), payment processing (65%), and security and privacy (58%).

A significant portion of consumers who shop online have experienced financial fraud (75%) and lost payments due to glitches (55%). Additionally, a substantial number report receiving damaged goods frequently (42%).

Payment security is a paramount concern for consumers, with nearly eight in 10 stating it as their top priority when making online purchases.

Latin American consumers exhibit higher frequency in online shopping compared to other regions, with one in four shopping online several times a week. They also express greater comfort with social media commerce.

The survey, conducted by iResearch in November 2023, included 500 consumers and 525 e-sellers from various regions, providing insights into the global e-commerce landscape. The findings underscore the need for improved trust-building measures and enhanced security in online transactions.