To sell or not to sell: Exploring sellers' trust and risk of chargeback fraud in cross‐border electronic commerce

Abstract

Over the past few decades, chargeback fraud from buyers has been identified as a major risk faced by online sellers, particularly small‐ and medium‐sized enterprises, in cross‐border electronic commerce. However, most previous studies have focused on trust and perceived risk from the buyers' perspective and in domestic online marketplaces, while neglecting the importance of sellers' trust and perceived risk in the success of online transactions and the significance of cross‐border transactions. To fill this gap in the literature, this study examines both the antecedents and the impacts of sellers' trust in buyers and their perceived risk of chargeback fraud on sellers' intention to trade with buyers in the context of cross‐border e‐commerce. To this end, we develop a conceptual model that identifies a set of institutional mechanisms to enhance sellers' trust and reduce their perceived risk. Hypotheses are tested via a survey of 443 sellers on http://DHgate.com, one of the major cross‐border e‐commerce websites connecting the small‐ and medium‐sized enterprises of mainland China with overseas buyers. Our research makes concrete contributions to e‐commerce research and generates useful insights for third‐party online transaction platforms and online trade policy makers.

Consumers’ Decision-Making Process on Social Commerce Platforms: Online Trust, Perceived Risk, and Purchase Intentions

“…Using exclusively empirical sources published recently (2017-2019) in Web of Science-and Scopus-indexed journals, our paper fills the gap in the literature by elucidating consumers' evaluation, commitment, and choice throughout online decisionmaking, insisting on their cognitive processing behaviors and on how expectations shape their pre-purchase and postpurchase satisfaction. Guo et al (2018) explain that the trust and perceived risk of retailing participants are pivotal grounds for the ascendancy of social commerce. Hall et al (2017) hold that social media can be employed to integrate consistent views of consumers into the decision-making process.…”

Designing a talents training model for cross-border e-commerce: a mixed approach of problem-based learning with social media

“…However, to the best of our knowledge, there is not enough research focusing on all these skills which staff need for CBEC. Lastly, some prior research focuses on the intention and behavior of the supplier and customer in the context of cross-border e-commerce [18]. This kind of important viewpoint also exists in several other fields and is usually the main point focused on by researchers [8,10,38].…”

“…Then, the students in each group discuss the problem and try their best to gather information to solve it. Finally, after the group discussion and arriving at a consensus, they present [16] External market environment Distance-related challenges influences the development of CBEC Gomez-Herrera et al [17] Geographic distance influences the trading process of buyers and sellers Hortaçsu et al [22] Distance is the barrier in CBEC and it has a great effect Kim et al [25] Early-mover advantages influence the development of companies entering in CBEC market Deng and Wang [14] Culture influences customer's adoption of international market Sinkovics et al [34] Due to the external market environment, small and medium enterprises face great challenges in CBEC Tavengerwei [37] Intention and behavior The trust and perceived risk of sellers are two major factors influencing the success of CBEC Guo et al [18] the result and obtain the feedback from the professor [32]. Consequently, PBL is the approach that helps students to deeply understand the knowledge through solving authentic problems [25].…”

“…Although CBEC has been investigated by considerable research, most of them have concentrated on the consumer, the supplier and the enterprise [18,26,13].…”

The ethics of extended revisions

“…In the fifth paper, Guo, Bao, Stuart, and Le‐Nguyen () note that retailers are increasingly offering customers a choice of online shopping and payment channels but this leaves them open to new types of fraud, with online chargeback fraud being a growing area. Their research argues that online retailers are the main perpetrators of online sales crimes and consumers face high risks, eg, receiving low‐quality goods.…”