ONLINE BRAND TRUST: WHAT ARE THE CONTRIBUTORS?

Thanks to the flexibility, ease of interactivity and personalization, the usage of internet has been increasing since it was first introduced back in the early 1980s. The internet has opened a new window and business opportunity that have never been imagined before, thus changing the way consumers shop. Differs from the traditional way of shopping, online shopping has allowed consumers to decide what kind of product they want, when and where they want to purchase the items within their budget by a click of a mouse or mobile phones. Instead of waiting for a premise to be opened and spending so much time looking for a parking space, online shopping provides a convenient way to shop as digital marketplaces are open all day, every day, throughout the year. However, trust has remained one of the most popular issues that leads to the ineffective use of digital marketplaces.

Because consumers play the main role for any business transactions, their trust contributes to the reduction of uncertainty and complexity of any transactions and relationships involving digital marketplaces. When customers show their trust to the brand and the company, they will show willingness in any transactions, eventually creating a smooth business transaction. Likewise, trust develops not only positive attitude towards suppliers but brings in customer loyalties (Schurr and Ozanne, 1985). Furthermore, a world of abundance for consumers is just another world of rivals for brands. When a particular brand is viewed as trustworthy, it has the added advantage to succeed as opposed to its competitors (Reast, 2005). 

Despite the increasing number of Internet users who spend their time with online shopping, companies should stay committed to Internet branding by considering the consumer’s perception of brand trust online. Ha (2004) defines brand trust as the trust possessed among the customers in a particular brand. In this era of e-commerce, online brand trust is considered as one essential component that spurs online purchases and more consumers are becoming aware of its importance (Quelch and Klein, 1996). When consumers put their trust in a particular brand, they will not be reluctant to spend a premium price not only for the brand itself but its brand extension while carrying on being loyal. Furthermore, when customers view a brand as trustworthy, they would not mind spending their time, sharing feedbacks regarding their behavior, tastes and preferences which would allow the brand to develop.

For businesses to remain strong in the game in the long run, there are several aspects that influence online brand trust which comprise of website factors and consumer factors. Sultan et al. (2002) identifies website factors such as navigation, advice, no error, fulfillment, community, privacy and security, trust seals and brand presentation are responsible in developing consumer’s trust. On the other hand, the study shows that trust is contributed by consumer factors such as self-confidence, past behavior, online shopping experience as well as entertainment experience. Lee and Turban (2001) also agree that the declining of online shopping activity is the result of the lacking of consumer trust. 

Salo and Karjaluoto (2007) suggest that internal factors namely consumer characteristics, previous experience with digital marketplaces, reputation, website quality and non-government association are likely related to online trust. As for external factors, they conclude that the product or service characteristics, the distinctive markets, cultures and countries act as the driving factors to the level of trust among consumers. Also, Srivinasan (2004) concludes that brand trust is greatly affected by word of mouth, positive online shopping experience and quality of information. In Malaysia, a recent study involving studying online brand trust in online ticketing determines word of mouth, online experience, quality information and brand reputation as the factors (Alam and Yasin, 2010). 

To make digital marketplaces fairer, it is not an easy task and Rome was not built in a day. As a developing country, it is important for online businesses to be prepared with the new challenges in building consumer online brand trust. They should execute effective plans and consider numerous factors such as demographic variables based on the previous studies. These online businesses must acquire an in-depth knowledge of factors contributing to online brand trust. 

THE INCREASING PREVALENCE OF DIGITAL MEDIA AND HOW IT AFFECTS BUSINESS FIRMS

It is no surprise that these days, companies are commonly utilizing their home pages, emails and social media as their current use of digital channels in their daily business. Furthermore, Leeflang et al. (2013) observes that mobile applications are viewed as the biggest growth areas for companies over the years, hence companies are expected to increasingly adopt these channels in their marketing operations to reach out their existing and potential customers. Those in marketing are expected to change from tactical mobile efforts to more transformative mobile marketing strategies in the next couple of years. Unfortunately, there is not enough evidence from a scientific publication that proves the effects of mobile marketing on metrics. 

The study carried out by Leeflang et al. (2013) proves that the rapid existence of digital media and tools in marketing have dramatically affected business companies. For example, interacting and serving customers via new channels has the most dominant change especially in companies that provide financial services. Moreover, the latest utilities allow the companies a significant amount of access to data and insights, as well as the ability to reach new customer segments. The companies in this study also suggested that these changes are a lot greater than other changes be it the entry of new competitors and the change in balance of power with established value chains. This in turn signifies that the marketing strategies of firms from all sectors experience a significant impact from the digitalization of media.

Due to the digitalization, marketing executives are now facing various challenges that can be out of their control such as the complex and ever-changing markets. Thus, business companies are always finding feasible solutions in order to keep up with the problems arising (Day, 2011). Although the majority of the companies claimed that they would be tackling the challenges with effective plans, there may be huge opportunities for lagging companies too. Such firms considered digital revolution as a moderate challenge as well as the management of the automated interactions with customers via digital self-service which includes online banking and online check-in. Apart from that, the price transparency issue is a serious issue as many companies from many different sectors are highly affected by plethora of free digital price comparison services which may cause price and margins erosion during economic recessions.

WATCH OUT FOR COUNTERFEIT ITEMS!

Imagine you are purchasing an item over the internet which cost you a fortune, only to realize that it was counterfeit. How would you feel about that? Wouldn’t you feel disappointed? Wouldn’t you lose your trust in online shopping? You see, this has been one of the ongoing issues which has been causing consumers to be in the state of trauma.

Some customers who initially planned to purchase genuine designer products reported that they received counterfeit products once receiving their packages and their efforts to contact the sellers remain pointless since the sellers have changed their contact numbers (The Star Online, 2016). Thus, before hitting the “buy” option, consumers are encouraged to carry out their own due diligence to avoid this kind of pitfall. If one encounters with a branded item but the price is too cheap, the chances that the seller may be listing fake products are rather high. Carousell, which is one of the popular digital marketplaces also advises their users to meet the seller at a particular for product inspection when purchasing such items. In order to safeguard and ensure the product meets the expectation of a customer, cash-on-delivery is said to be the best alternative (The Star Online, 2016). 

Basically, unauthorized seller would photograph the fake branded items in a set up premise, not only to make the stocks to appear attractive, but also deceiving potential buyers into thinking the items sold are authentic. On top of that, these sellers have the audacity to forge the certificates of authenticity. It is worth to mention that the certificate of authenticity does not have intrinsic commercial value and is never sold separately from the product. To prevent any suspicion among the buyers, they create the impression that the items are genuine by simply attaching the certificate together. In the case of customers who were fallen victims to this dispute, they are welcome to recognize sellers who advertise fake products on the internet by reaching KPDNKK toll-free line 1800-88-6800 in order to prevent other online shoppers from being the next target. 

It is not always the case of product originality, but there are other important issues namely the ability to differentiate genuine products from the fake ones. This issue may result in continuity in quality, risk reduction and protection of brand and intellectual property. Because of the almost identical packaging to the original ones, consumers are easily tricked into buying counterfeit products. This is extremely dangerous when it comes to products related to health product where consumers’ wellbeing may be jeopardized and they may be exposed to illnesses. Despite the usage of chemically hazardous ingredients in the products for advanced results, the sellers could not careless about the customers and would not take the blame as they are constantly making their way to generate even more profits from the business. 

Apart from seizing the counterfeit products, businesses who owned the brand of the products should immediately take legal action towards the sellers so that consumers can steer away from illegal businesses piracy can be put to an end. Furthermore, the authority should regularly conduct investigations at manufacturing premises as well as questioning the suppliers involved. The act of producing and selling counterfeit items is considered as a serious offense. In order to maintain the integrity of digital marketplaces, the goods are supposed to be destroyed under the order of the court, according to the Supply Control Act 1961, the Copyright Act 1987, the Consumer Protection Act 1999, the Price Control and Anti-Profiteering Act 2011 and the Trade Descriptions Act 2011. 

SEAMLESS ONLINE EXPERIENCE IN 2018 AND HOW IT IS DONE

In 2017, the online shopping sphere has been expanded all due to the rapid growth of the e-commerce market in Malaysia. Many businesses based in Malaysia are grabbing this opportunity by going digital. Furthermore, a penetration rate amounting to 2.5% is witnessed in the Malaysian e-commerce industry (Kim, 2017). However, 2018 is the year where the e-commerce penetration rate in Malaysia is expected to double, anywhere between 4% to 5% (Kim, 2017). Hence, it is time for digital marketers to step up their game by continuously innovating their services and offerings, supporting the development of the industry and surpassing the expectations of consumers. 

These days, other than taking the advantages of digital marketplaces to help them organizing their day-to-day expenses, consumers are looking forward to more options for payment. The Visa Consumer Payment Attitudes Study (2016) reported 7 out of 10 Malaysians are willing to utilize mobile wallets while 68% of Malaysians prefer the use of contactless payments instead of cash. Plus, online shoppers will not have to deal with the long queue at the ATM and businesses can operate with the minimal amount of investment, cost and risk. For instance, SMEs and micro-businesses are going cashless while enjoying a low merchant discount rate of 0.8% through the utilization of mobile payment applications such as vcash offered by Digi. After much consideration, many digital marketers are striving to provide a wider assortment of convenient and popular payment options for online shoppers. 

Would you believe that 80% of users are reportedly leaving the cart during the checkout process? According to Forbes (2014), consumers are more likely to the tab, without having to complete the transactions all because of the laborious and tedious process. In addition, digital marketplaces are suffering losses due to cart abandonment. Thus, digital marketplaces are ought to design a sophisticated, friendly and easy checkout system. Besides that, due to the massive information leaks from the internet becomes one of the factors of abandonment, digital marketplaces are introducing security feature onto their websites. 

Other than wishing for a fast delivery, consumers nowadays are anxious and curious about the whereabouts of their purchases. They would like to know the current location of the items and when they would be arriving at their doorstep. Hence, digital marketplaces are providing a greater transparency on product delivery by informing their customers the tracking numbers through a comprehensive tracking system. For example, Photobook Malaysia comes up with its own intelligent application where the progress of the ordered items is updated from time to time and should customers face any difficulties, their friendly customer care service is always ready to assist. 

With these strategies, the Malaysian e-commerce prospect in 2018 will be on the right track to succeed as well as making the digital marketplaces for both businesses and consumers.

FRAUD TRANSACTION AND DELIVERY: SHOPPERS ARE WORRIED

A number of online shoppers have voiced out their fear of buying goods online due to online fraud. There are numerous reports regarding fraud occurring in our country. Online shoppers reported that they did not hear any updates from the sellers by the time they have made the payment. Other than the sellers terminating their contact numbers or websites, they would deliver items which failed to meet the requirements as advertised on the digital marketplaces, leading the customers to ultimate disappointment. 

Moreover, there is a case where a scammer manages to access a depositor’s bank account to conduct his criminal activity. The scammer who disguised himself as a loan agent, had persuaded 200 people to deposit their money into the complainant’s bank account for RM1000 scooters he advertised on FaceBook. The complainant who realized his account had been so active with money going in and out was left with charges as those depositors had pressed charges against him. Unfortunately, the person committing the crime vanished with the loan processing fee and due to the small amounts involved, the reluctance of the victims to lodge police reports had prompt these scammers to pursue their illicit trade without being traced (Mukhtar et al, 2016).

Hence, before successfully enrolling these businesses or individuals on digital marketplaces, they need to be authorized first. The details of the company or individual, company registration number, identity card, company address and bank account statement should be acquired beforehand. These documents can beneficial when it comes to performing a verification check. Even though these online scammers would provide a false information, this measure would impede them from continuing their activities due to the high level of security. 

MALAYSIAN CONSUMER’S AWARENESS ON DIGITAL MARKETPLACE ISSUES

The e-commerce which was first introduce in the mid-1990s has been recognized globally as a multi-trillion dollar industry over the last 10 years. As for the Malaysian e-commerce, it is maneuvered rapid knowledge driven economy and ICT enablement. Furthermore, 6 out of 10 Malaysians preferred to buy flight tickets online, 58% Malaysian bought movie and performance tickets online while nearly quarters of Malaysian survey respondents utilized social media to look for promotion code while shopping on digital marketplaces (Mukhtar et al., 2016; Fathil Asri, 2015; Nelson Global Survey, 2014). This clearly shows that Malaysian consumers are accepting the existence of e-commerce with open arms especially due to the development of internet and technology. 

According to the Department of Statistics Malaysia (2016), it has been reported that age 15 and above using the internet was at 57% in 2013 while the percentage has increased by 14.1% to 71.1% in 2015 where most of them were using their mobile devices to surf the internet. Today, consumers be it adults or teenagers are actively making use of the internet, consequently contributing to the steady growth of the e-commerce. Unfortunately, Malaysian consumers are only willing to go digital using the latest technology if and only if they are shown a real evidence or positive development from other superior foreign countries (Che Mohd. Zulkifly, 2014). Although the e-commerce industry contributed to USD984 million the Malaysian revenue, there are still issues concerned by both businesses and consumers such as security and customer safety (Krishnan et al., 2017).

The level of internet security has been one of the fears to businesses and consumers to engage with e-commerce (Niranjanamurthy and Chahar, 2013). Generally, both parties want to protect themselves from such harms namely unauthorized access, uses, alteration and destruction. E-commerce security offers three essential component data security, network security and privacy of the customers. Furthermore, many businesses are updating their security system to prevent risks, consequently contributing to the efficient digital marketplaces. On the other hand, consumers are still doubting the digital marketplace due to their perceived risks involved (Muthaiyah et al., 2011). Thus, to ensure their security and privacy are protected, it is vital for consumers to enrich their knowledge on how to safeguard their highly confidential personal information and consumer rights.

Next, customer safety remains as the common issue be it in any activities (Cagaoan et al., 2014). E-commerce or digital marketplace is operated in global network internet which is entrusting. Henceforth, because confidentiality is listed as the requirement, it is also a must to keep it away from all kinds of threats. Moreover, customer awareness on digital marketplaces’ security is increased through the deployment of the Consumer Protection Act in 2007. Plus, the Consumer Protection (Electronic Trade Transactions) Regulation 2012 was introduced in 2013. These regulations that come with certain obligations to digital marketplace are implemented with aims to consumer’s confidence in making online transaction and shopping. Once these regulations are imposed, other than making the growth of the digital marketplace industry to spur, it is predicted that the people in Malaysia will be persuaded to access the e-commerce platform without hesitation.

GO-TO MARKET OPERATIONS AND EXECUTION

These days, social media such as YouTube, FaceBook and Instagram are not foreign to us. Social media can be helpful to us especially when we are about to buy something for the first time as it provides a platform where previous buyers could voice out their experiences or reviews of the purchased products. According to Nielsen (2007), the existence of social media not just allowing companies to promote their business to the society at large at such a low cost, but also aids in creating trust with the audience since there is a lack of trust among customers in most forms of advertisements. This consequently drive business companies to focus more on social media since it is gradually taking control of the brand reputation of companies (Kaplan & Haenlein, 2010). 

Social media platforms offer opportunities to build value-added content for customers and to monitor negative customer sentiment. On the other hand, there may also be potential harms where companies may be encountering enraged customers who are believed to be value destroyers instead of value creators (Verhoef, Beckers & van Doorn, 2013; Verhoef, Reinartz & Krafft, 2010). Hence, companies are striving on dealing with the social environment as it is with the traditional way companies pursued marketing. According to Verhoef et al. (2013), the effort of interacting with customers through social media may be exposing companies to a weaker control. Companies may be at worrying state as the risks of a lack of control is a lot larger especially for strong brands in particular. For example, there is a risk of customers who use the opportunities to tarnish the companies’ established brand value. Henceforth, companies should be extremely cautious in managing the activities pursued.  

There are a few ways implemented by firms to manage brand health with social media. Firstly, about 49% of the firms created value-added content or services for customers on social media platforms and forums. Furthermore, 44% of the firms supervised brand mentions and sentiments in social media forums and addressing negative messages directly. Next, around 25% of the studied firms recognized influential discussion forums and joining in discussions about the brand while the other 22% of the firms reached out to key online opinion leaders to serve as brand advocates. Finally, an amount of 14% hired a third-party service provider to manage brand interactions in social media and other online forums (Leeflang et al., 2013).

GOODS ARE FAULTY? WARRANTY!

Although e-commerce is still developing and maturing rapidly in Malaysia, there are a few areas that need to be focused on in dealing with consumer protection. Other than being scammed by unethical sellers, online buyers are actively expressing their concerns regarding the warranty of their purchased goods. In general, any user guides are attached to the products being sold and return or exchange policies are often posted on the merchant’s website. Consumers are advised to register with them and store any proof of payment be it receipt or bill with them should any events occur. 

 Nevertheless, the warrant claim process could be tiring for buyers as it took quite some time to settle, which could lead for months. On the contrary, from a study carried out by Mukhtar et al., (2016) stated that half of the consumers mentioned that the process of claiming warranty for a product bought online usually required less than 14 days to accomplish. This issue arises because of several factors. Other than the delays, consumers are always denied of warranty because of the dispute between the service centres and their respective brands, together with the lack of service centres in the buyer’s location. 

In other cases, warranty claims are often ignored due to the absence because purchasers do not acquire formal bills from the sellers. Furthermore, the negligence of the dealer to stamp or sign the warranty card may decline the purchaser’s rights. Plus, due to the component being phased out by the goods manufacturer despite the products are still under warranty, dealers are not able to cover any future warranty claims. The issue involving the product life-cycles and growth in outsourcing is evident when purchasers buy items belong to the computer industry. 

It is important for both purchaser and dealers need to be certain that the warranty card is stamped with a clear date of purchase. Consumers should always keep in mind to check the expiration date of the warranty and the conditions that may void coverage. Also, it is recommended for consumers to look for conditions that could prove expensive or inconvenient especially when buyers need to deliver a heavy purchase to a factory for service. Lastly, because the e-commerce in Malaysia is lagged behind approximately 3 to 5 years when compared to industries in the US (Mukhtar et al, 2016), both stores and brands should come up with a feasible solution to resolve their issues. 

CUSTOMERS WHO LOVE ONLINE SHOPPING: WHAT ARE OUR RIGHTS FOR FAIRER DIGITAL MARKETPLACES?

From the previous year, it was reported that e-commerce sales has reached up to the amount of 2.29 trillion (USD) globally and the amount is expected to climbed up to 4.49 trillion (USD), which would be double the existing value by 2021. Consumers from all walks of life for could buy or book anything online. For example, due to the booming of e-commerce in Pakistan, working women are doing most of their shopping online (The Tribune Express, 2018). We can see that e-commerce has change how the way people shop, offering customers more options apart from creating products and services accessible. 

Although this might seem interesting, 70% of online customers are feel that there still issues arising namely scams or fraud whenever they are making online transactions when purchasing goods over the internet (The Express Tribune, 2018). Some people still disapprove the idea of online shopping as they fear unexpected and dishonest costs, illegal and fraudulent scams or unfair, unclear and confusing business practices. Consequently, the digital economy could be experiencing a significant impediment in further development if consumers do not trust businesses. It is no use for companies to serve so many choices on such a convenient scale never seen if the customers feel discouraged from using the advanced technology. 

Hence, there is an obligation to consider a customer perspective to the policy framework because it is vital to gain trust in e-commerce as compared to the traditional way of business. A few steps have been implemented to combat this issue which include developing supportive financial services regulations, provide import and export regulations as well as establish and regulate e-commerce establishments. Furthermore, when customers are provided with a strong, safe and secure internet access across the country, customers shall feel safe and confident when online shopping. Plus, business companies should address clear terms and conditions, fair pricing and good redress procedures as growth on the supply-side of the digital market presupposes consumer trust on the demand-side of the market. Business companies, especially in Malaysia, need to have a strong e-commerce policy which benefits both parties where the business can be safeguarded while at the same time focusing on the customers.

HOW EACH COUNTRY IS CREATING A FAIRER DIGITAL MARKETPLACE

The rising of technology and e-commerce has change the way people shop not just in our country but also globally. According to a survey by comScore, an analytics firm and UPS, it was reported that consumers are now purchasing more goods over the internet than going to the physical stores. Furthermore, from 5000 consumers involved in the survey, shoppers made 47% of their purchases over the internet back in 2014 while in 2015, the percentage has increased up to 51%. This however, does not come without its fair share of challenges for consumers. Such issues occur when consumers make their purchases through social media sites run by smaller companies or individuals who do not provide adequate security features or secure payment methods. 

So, it is a must that digital marketplaces should offer a fair and secure shopping environment where customers shall obtain a compensation without causing too much burden and expenses should things go wrong during the transaction made. The recent World Consumer Rights Day 2018 aimed to provide a fair and secure internet access for all in combating fraud and scams as well as better consumer protection online. 135 members from more than 90 countries are now participating in this move and FOMCA is one of them. Many countries are coming up with numerous actions to maximize the use of technology at the same time protecting the consumers in a new market that go beyond physical borders. 

The United States of America plays a part in providing a fair consumer regime while taking care of the trader and industrialist with the help of media. In the United Kingdom, consumers are given guidance and protection, thanks to the magazine, WHICH. Furthermore, the Department of Trade and Industry aids in safeguarding and protecting consumers by providing quality goods at a reasonable price. In addition, customers residing in EU countries are protected by EU regulations.  Meanwhile in Asia, Singapore and Hong Kong are a step ahead where consumers are educated from the airport onwards. 

Based on these various implementations, we see that it is time for us global citizen to learn the significance of observing and enforcing consumer rights. It is time for us to minimize or prevent such things be it frauds or scams so that we can create a fairer marketplace for each and every one of us. Since we have plenty social media sites available just at the end of our fingertips, we can spend some of our time for a good cause. As an individual, you are welcomed to call for fairer digital marketplaces by using the hashtag #BetterDigitalWorld. It’s now or never, ladies and gentlemen! 

LOOK OUT! DANGER AHEAD!

Internet is widely used as a tool to conduct research, browsing through social media, new and online shopping. Malaysia is reportedly having the highest penetration of online shoppers, encompassing of 19 million users supporting a business worth RM 25bil and the is predicted to double by 2020. Malaysians are lucky enough to experience the luxury of shopping online, price advantages, exclusive deals and availability of reviews. These days, booking flight ticket or movie tickets, paying school fees and making telegraphic transfers online and within minutes in the comfort of our homes. Also, it is unlikely for a customer who perform online transaction to get caught in a scam or encounter any problems if they follow the instructions correctly or do not get conned by phishing sites. However, the risk is higher when consumers make a purchase through social media when they have to deal with small companies or individuals who do not provide sufficient security features or secure payment methods. 

The Consumers’ Association of Penang (CAP) reported that it has received approximately 50 complaints of online scams in 2017. Furthermore, the organization believes that the actual number could be much greater because some complainants would just feel discouraged to carry on the issue further. In addition, the complainants would be carrying another burden where the expenses incurred were a lot compared to the claims they were after. Moreover, according to Kuala Lumpur Commercial Crime Investigation Department chief ACP Mohd Luthfi, the backgrounds of the victims are the same where they are individuals who were urgently seeking for financial aid. Plus, these victims were tricked with the appealing terms found on advertisements set up on social media sites such as low interest rate, no guarantor, immediate approval and hassle-free applications, especially for applicants who were blacklisted by banks. 

The irresponsible scammers would run away with the loan processing fee. What is even worse, because of the amount to be rather small, victims felt that it was not necessary to lodge a police report. This in turn would make the scammers to even further their act as no action is taken. Next, as scammers are getting even more cunning as the technology evolves, there are so many new tactics they could use on us. Recently, automated teller machines (ATM) in Malaysia have been hacked by overseas hackers all because of the obsolete operating systems. 

So, what can we do about this?

As a consumer who does online shopping most of the time, we need to be aware of what is criminal issues which are currently happening in the cyber world. On top of that, it is advisable for users to not make any online transactions when they are out public places. Although quick response (QR) codes come in handy most of the time, we need to be extra careful because irresponsible parties could be embedding their own codes instead of the real ones. Meanwhile, the authorities could educate the society at large by updating the statistics on cybercrimes and ways to prevent them. Those who committed this crime should be tracked down and given a hefty sum of penalties so that this crime activities could be put to a halt. Lastly, banks should always update their operating systems regularly to avoid from being hacked.

MOST POPULAR ONLINE MARKETPLACES IN MALAYSIA

E-commerce serves as a platform to sell goods and services to consumers that comes with easy payment method. Because of the huge number of potential online shoppers, plenty start-up companies or individuals are growing their business in Malaysia’s digital market. Goods are often advertised through social media namely FaceBook, Instagram and Twitter as these platforms enable the sellers to generate more sales. Nevertheless, in order to optimize their businesses, goods are needed to be sold via multiple channels and by setting up their respective e-commerce website. For sellers that lack the skill or budget to set up their own e-commerce website, one should consider online marketplaces. 

Now, what is online marketplaces exactly? 

Online marketplaces are ready-made platforms which allow multiple third parties (the sellers) to list their products or services they wish to sell. Carousell, Lazada and Mudah are some of the popular online marketplaces that offer this service. These online marketplaces are so convenient that all we have to do is just signing up an account and start listing our products. Then, the online marketplace will manage the order for us from the existing order management system. Furthermore, the fast-growing online marketing in our country has attracted many sellers to generate sales from offline platform to online platform. 

Unlike e-commerce website, sellers do not have to invest some cash to maintain the website. Online marketplaces carry out site maintenance by automatically updating the content. Hence, it is no doubt that online marketplaces are becoming popular among us today.  These marketplaces garnered a huge number of visitors daily with in interest to buy which are most likely to turn into sales. The following are some of the most popular online marketplaces targeted to the people in Malaysia. These platforms are ideal for you and should come in handy when you want to find a cheap deal online at a later time! 

KEEPING UP WITH THE DIGITAL MARKETS CONSUMERS

As many people are continuously demanding for better, faster and cheaper products or services, businesses must always find new ways to come up with the next best thing consumers will want. Businesses must learn to keep up with the new types of consumer needs and trends as these are proven to be contributing to the companies’ survival and success. The e-commerce prospect in Malaysia and the Asia region are predicted to be profitable in the future. 

Furthermore, the engagement of Malaysian Governments and regulatory bodies on a massive platform has provided guidelines to merchants to make use of e-commerce systematically by imposing e-commerce laws, policy and regulations. Apart from that, this action manages to provide protection for customers who are into e-commerce. As technology is always emerging, e-commerce in Malaysia is always moving forward and becoming a vital tool especially to businesses. 

Consumers and businesses should take precautions when dealing with e-commerce. This is to ensure that any malpractices such as false claim, scams and fake products can be curbed. Other than building a sense of security and awareness, the actions taken act as reminder to the consumers and business entities where they are always protected by Malaysia’s law, acts and regulations. There is no escape for them to commit any wrongdoing since their actions are being watched by the authorities.  

Should any customers encounter any unethical behavior by the other party, they should make a report without any hesitation. It is advisable for cheated consumers to lodge a report within 24 hours once the fraud activity has been identified. If both parties have agreed on a certain price offered, the online transaction should be made without a hassle and the delivery of the item should be made immediately. It is also recommended to assure the buyers that their purchases will be arriving in a good condition in a short period of time so that they will not feel distressed after performing online shopping. 

Additionally, e-commerce is mainly facilitated by technology that comes with network, hardware and applications. We need to ensure that the devices are equipped with a high level of protection to ensure information security of e-commerce. Also, the security products should be tested by other independent and trusted party to validate if they are reliable. Besides that, the Malaysian Common Criteria Scheme (MyCC) was initiated to elevate the competitiveness in quality assurance of information security through the deployment of the Common Criteria (CC) standard as well as to gain the consumer confidence in Malaysian information security product and systems. On top of that, the laboratory use for testing purposes are always on the go to conduct CC evaluation to local information security product and is now being accredited with MS ISO 17025.

MALAYSIAN DIGITAL MARKETPLACE AND ITS FUTURE

Traditional retail industries are making their ways to participate in the digital trend. This eventually has heightened the fear of market saturation to the e-commerce industry. In order stay in the game for a longer period of time, digital marketers are investing their time, money and energy on newer technologies to further improving their businesses. Furthermore, technology experts believed that with the implementation of innovative and creative technology, the e-commerce industry is predicted to be more mobile and would involve the latest virtual reality market. Online shoppers will be dealing with sellers through such medium such as augmented reality and virtual reality when making purchases over the internet (Global Retail Trends, 2017). 

Furthermore, KPMG International Cooperative (2017) mentioned that online shopping via the digital marketplaces is predicted to be available on mobile devices. Mobile-first sites, dedicated apps and various payment methods made it easier for people who are busy running their day-to-day lives to shop by using their phones. For example, global mobile sales accumulated to 34% of all e-commerce transactions worldwide and it was predicted to grow 31% in 2017 (e-Marketer, 2017). Hence, businesses are utilizing omni-channel services as they believed that the consumers are always looking for a more convenient way of shopping. 

To provide a positive customer experience, businesses are working on a communication through the usage of technologies such as bots. Businesses are seen to be doing a good job connecting their physical and digital presence in enhancing the customer experience. For customers who expect a ‘phygital’ online shopping experience, investing in innovative and latest technologies is the answer. Other than fulfilling savvy consumers demands for customized services and experience, the latest technologies offer businesses to rise to the personalization challenge. 

WHAT MAKES SKEPTICAL MALAYSIAN CONSUMERS TO PURCHASE ITEMS ONLINE WHEN PERSONAL INFORMATION AND MONEY ARE INVOLVED?

The Malaysian e-commerce is considered by the majority of leading experts to be in the early stage of development. Consumers are still studying the brands available online and what each brand can provide them. SKMM (2010) stated that 66.3% of our consumers are still choosing to shop in a physical store that enable them to have the privilege of inspecting the goods without having to worry about the security of e-commerce. Furthermore, since 59.1% of the consumers are expressing their disbelief of e-commerce while 58.7% of the consumers do not find digital marketplaces provide enough safety, Alam and Yasin (2010) studied the factors influencing consumer trust by taking data from the purchasing of flight tickets over the internet. 

Consumer behavior is reportedly to be influenced preferably through word-of-mouth (WOM) compared to other means of marketing communications, be it advertising and publicity. Ha (2004) mentioned that WOM is one of the key drivers of brand trust because as it is proven to increase consumer awareness, expectations, perceptions, attitudes, behavioral intentions and behavior. Alam and Yasin (2010) agreed that brand trust can be instilled successfully with the existence of positive WOM, hence concluding that there is a strong, positive relationship between WOM and the level of trust possessed by the consumer.  

One of the reasons consumers are reluctant to trust the digital marketplaces is because they are hesitant to provide their personal details, especially when it involves credit card. Unlike high-performing e-commerce economies, ours lacks of high-end security features which causes Malaysian consumers feeling insecure and lacking of trust in the internet. According to a 2013 survey carried out by Rakuten Online Shopping, an internet service company and owner of Malaysian marketplace, 83% of the respondents agreed that a secure website and transaction is the most important element that persuade their online shopping decision. Hence, the decision of the people in Malaysia buying their flight tickets over the internet is mainly prompted by the high level of security system offered by the marketplace towards the consumer’s personal information and transaction being disclosed to third parties (Ha, 2004; Alam and Yasin, 2010).

Alam and Yasin (2010) stated that there is a strong, negative relationship between perceived risk and the level of brand trust attained by consumers. Perceived risk can be categorized as economic risk, performance risk and purchasing risk. Consumers are terrified over the issue of monetary loss from online purchasing decision, the level of security in digital marketplace website and having to deal with products or services that do not meet the requirements as advertised. Therefore, the greater the amount of perceived risk that consumers have in online purchase transaction, the greater the impact on a certain brand.

In order to convince consumers to make more purchases online, it is important to set up a useful website with detailed and quality information. The engaging, authentic and relevant information ensures the consumers to have a good online experience as they get the opportunity to build a good rapport with the brand available on the digital marketplaces. Plus, quality information has the ability to increase consumers’ knowledge and awareness of the brand. Brands that are willing to invest their time and money into perfecting their functioning websites are considered to portray their level of commitment to their customers. A seamless user experience will eventually increase their consumers’ perception of their brand and trust. 

To make the digital marketplaces fair, the aforementioned factors could serve as a guideline for marketers in understanding the development of brand trust. Sellers should identify the factors that prompted customers to buy certain items or services over the internet. This is to make sure that businesses can always execute an effective plan to make their businesses more profitable at the end of the day. In addition, consumers can have the luxury of better services which will be greatly contributing to their confidence in digital marketplaces.

Trust is earned, but it can also be broken. So, show your commitment and install it into the basis of your company so everyone is onboard. 

BUILDING A FAIR DIGITAL MARKETPLACE WITH REPUTATION SYSTEMS AND OTHER MECHANISMS

The design of a particular marketplace should provide safety and reliability that can convince the customers secure transactions. Of course, digital marketplace comes with its drawbacks where both sellers and buyers could face risks in anonymous transactions. For instance, there could be issues where sellers are not being paid after an order has been secured, damaging of assets as well as negotiating with demanding or unpleasant customers. As for buyers, they could be exposed to the risks of not getting the expected products or services and the disappearing of seller when payment has been made. The usual solutions to combat this problem involve the combination of firms building reputable brands and having the meddling of government instructing the sellers to comply with the regulations. 

By utilizing the advancement of digital technology such as digital reputation systems, insurance, fraud detection algorithm, identity and credential verification, dispute resolute procedures and customer service, this allows a safer transaction to be made. Firstly, reputation systems, which are currently being used by many online marketplaces, operate by pursuing the transactions of a party and enabling the other party to give a rate or review once completing the transaction. Although reviews are made available to the public, negative reviews could be painting a bad image on behalf of the sellers (Dellarocas, 2003; Cabral and Hortacsu, 2010; Luca, 2013; Pallais, 2014). On the other hand, marketplaces namely eBay and Airbnb could not be made possible without the prevalence of reputation systems. This means that reputation systems should be properly designed despite the effects that arise. 

Reviews are often affecting consumer demand and they have the ability to reduce moral hazard on sellers’ behalf. In a two-sided review systems, both sellers and buyers could be exposed to the risk of retaliation when one of the parties gives a negative review. This is evident especially if we are familiar with the application, Carousell, where potential buyers or sellers are given the privilege to do a checking before pursuing with the transaction. Therefore, the system should be regulated by having the reviews to be revealed at the same time after both parties have submitted the reviews or once the submission period has ended. 

Meanwhile, online marketplaces that relate to supply of services to consumers are taking the issue of making fairer marketplaces in a serious manner. Airbnb and Uber require identification based on government issued documents as well as social media account to ensure the marketplaces are safe and can be trusted by the customers. Furthermore, when customers need a trusted driver to take them somewhere or wish to hire a professional to carry out a certain job, they shall not be worried since other marketplaces such as Lyft and Thumbtack which are widely visited by the people in the US, perform a thorough formal background checks and double-check professional certifications and licenses. Moreover, by relying on its cloud-based machine learning fraud detection, services offered by Sift Science allow companies to detect fake accounts, malicious content and credit card fraud, thus creating faster, smoother and safer online experiences.

Marketplaces are also focusing on customer service and dispute resolution since it is a meaningful competitive advantage to have a strong reputation of reliable customer service operation. 65% of the respondents claimed that an excellent customer support is the key to a company’s success in winning the customer’s loyalty and trust (KPMG, 2017). Buyers or sellers are given a compensation with a proper management in the case of unexpected events occurred during a transaction. Plus, marketplaces are also providing insurance contracts. For instance, in case of property damage such as accidents which occur during a transaction, Airbnb and Uber should cover the insurance on behalf of the sellers. 

KEEPING DIGITAL MARKET FAIR AND SECURE

When we do online shopping, there are other issues that we might encounter which are differ from the traditional way of offline shopping. One might encounter with cybercrime activities such as intrusion, spam and malicious code. In Malaysia, financial fraud activities in cyberspace has reached between 40% to 50%, which has cost losses an amount of more than half a billion ringgit in two years. Moreover, RM60 million was lost to scammers in just 3 months shy into 2018. Due to the openness of the internet which could be poisoning to us, there are several measures that should be paid attention to so that we, Malaysian, will not be fallen as victims of cybercrime.  

Firstly, we should get as many and detailed information on the security of online shopping, ‘chatting’, e-mail and online scams as possible. The extensive use of technology has allowed us to perform all sorts of online transaction be it trading, paying bills and so forth. However, as a consumer, we should always keep in mind to carry out a thorough research and analyze the product available online prior purchasing it online. Also, it is advisable for consumers to read the disclaimer before filling any forms made online to make legal dealing easier. Plus, consumers are advised to leave the transaction should the disclaimer is unavailable. Consumers also should ensure that the websites they visited are with the original and official URLs and avoid opening links from an email service as this could pose as threat. 

The authorities should be stepping in by tightening the legal enforcement so that the it can adapt the present-day challenges as the cybercrimes activities are at an alarming rate. Numerous laws are being introduce such as Computer Crime Act (Act 563), Optical Disc Act 2000, Digital Signature Act (Act 562) and Communications and Multimedia Act 1998, all with the same objective, which is to promote the cyber security culture to the Malaysian society. Furthermore, in 2006, our government has built the Institute of International Multilateral Partnership Against Cyber Threats (IMPACT) due to the global awareness of cyber threat. However, the current cyber law is unable to get rid of cybercrimes as cyber criminals are getting smarter with technological advances. Incident such as money theft through credit card numbers, exploitation of data from database are still remained undefeated by our existing cyber law. 

Finally, banks should make sure that all matters prepared are guaranteed to have high security features. One of the examples include the digital certificate obtained from Malaysia Cybersecurity. This certificate enables immediate identification of every website forgery. The existence of this certificate will discourage unethical individuals from pursuing their act in cybercrimes. 

Hence, we need to come hand in hand to minimize this ongoing difficult issue. Although it is tough to combat as various modus operandi resurface each time, we as consumers need to be observant on the current issues all the time. Avoid believing matter without proof and sales that are of lacking of its nature and condition. Furthermore, we need to be careful when we stumbled upon offers made by any other parties over the internet. Hopefully, the measures taken could provide us fairer and safer digital marketplaces where consumers are able to harness the full benefits of digitization.

COMBATING THE CHALLENGES OF ONLINE MARKETPLACES

One might ask, “Who is the regulator of digital market place?” or “Who is in charge of the consumer grievances due to internet fraud?” Well, Malaysia has introduced a set of e-commerce regulations based on a combination of the Electronic Commerce Act 2006 and the Electronic Government Activities Act 2007. The government also suggests that the contents in the e-commerce legislation are needed to be reviewed in order to adjust to any modification in technology as well as social networking and mobile applications. Plus, Malaysia has a prolific number of consumers who take the advantages of mobile phone where in 2011, it was reported that Malaysian constituted 61% of internet users in Asia (Mukhtar et al, 2016).

According to Bohme and Moore (2012), the likelihood of reducing online shopping among consumers who experienced cybercrimes previously has increased by 10%. Furthermore, the alarming number of cybercrimes has cause major concerns among consumers where 18% of them stated to reduce the activity of online shopping while 50% of them claimed to be extra cautious when buying things over the internet. As consumers feel discourage to make use of the online marketplaces, this could be causing a harmful effect to e-commerce businesses which could hinder them from expanding. Thus, Malaysia has look beyond this issue by establishing an Internet Banking Task Force and Malaysian Cyber Security Agency with an aim to encourage the consumers to do online shopping by heightening their confidence with the presence of strong internet security. 

Also, Malaysia Central Bank (BNM) called for the implementation of EuroPay Master card-Visa standard for transactions involving credit cards back in 2005. Furthermore, minimum risk management requirements are introduced for all types of electronic banking which consist of two-factor authorization. Malaysia too does not miss the opportunity to join the bandwagon of introducing e-commerce laws, policies and regulating e-commerce transactions internationally by participating in Asia Pacific Economic Cooperation’s (APEC). The aforementioned measures are expected to build a more convenient e-commerce environment in Malaysia as the health of the economy would deteriorate if consumers are declining the use of digital marketplaces. The authorities or organizations in Malaysia play significant roles in regulating Malaysian e-commerce environment and hopefully, one day, our e-commerce will grow and be on the same level to those in the United States or other advanced e-commerce destinations. 

FIGHTING CYBERCRIMES

The Electronic Commerce Act 2006 remains as one of the essentials primary source of electronic commerce directory for the private sector. The act has been improved by the existence of Electronic Government Activities Act 2007, which considers the same matter to those belong in the government sector. In addition, the Electronic Commerce Act 2006 is not another new act but it is in fact identical to the United Nations Electronic Communications Conventions. Furthermore, digital signatures are protected by the Digital Signature Act 1997 whereas the Electronic Commerce Act 2006 focuses on electronic signatures. 

As consumers, we should all be familiar with the Consumer Protection Act. Apart from demanding the minimum product standards, with this act, we have the rights against repression practices. In 2007, an amendment has been made to this act where it has expanded its focus to provide protection in e-commerce transactions. Due to the many issues of internet security, once again this act has been reviewed to improve the standard safety condition for services while security to consumers in a regular form contract. In addition, the effort of boosting the consumers’ confidence to perform online shopping can be seen through the implementation of Consumer Protection Regulations 2012. The guidelines highlight the requirement on online sellers and online marketplace operators, which are viewed to have a positive impact to our country’s e-commerce growth. 

Malaysian Communications and Multimedia Commission (MCMC) was founded to regulate the information technology and communication industries. The Communications and Multimedia Act 1998 drives the Commission with a powerful authority to manage online speech and preventing individuals from releasing indecent or false promotion with the intention of threatening or harassing any other individual. Although the Malaysian Government has vowed not to censor the internet, those who fail to obey this may be facing criminal penalties. 

There are exactly 4 categories of activities related to unauthorized entry into computer systems which are barred by the Computer Crimes Act 1997. According to section 3, this includes the act of committing with the intention of securing unauthorized access to programs or data stored in any computer. Next, section 4 explains on the act of intending to secure unauthorized access to programs or data stored in any computer in order to commit fraud or dishonesty. Meanwhile, section 5 elaborates on the acts committed with the knowledge that the act will prompt unauthorized modification of the content of any computer. Lastly, section 6 mentions the unethical communication of any password, code or means of access to a computer to any person who is not authorized to receive the same. Although these provisions are concerning to computer crimes field, the provisions in e-commerce laws and copyright laws have complemented the legislation of Malaysia’s cybercrime, at the same time more appropriate with international standards.  

PROVIDING ONLINE DISCLOSURE; WHY DOES IT MATTER?

Businesses embarking on digital marketplaces should at least provide a clear, accurate and easy to access information about their identities. For instance, businesses should justify the identification of the business, provide prompt, easy and effective consumer communication with the business, appropriate and effective resolutions regarding any disputes, service of legal process in domestic and cross-border disputes and the location of the business. This is to ensure that the customers shall have sufficient details when making an informed decision concerning a particular transaction. Furthermore, when businesses announce their membership in any relevant self-regulatory programme, business association or other body, consumers may use the opportunity to take advantage of the dispute resolution mechanisms provided by the organization should any issues arise.

Besides that, they should justify information regarding the goods or services they are offering as sufficiently. This is to enable the consumers to be aware of their products before proceeding with their purchases. Furthermore, Oxley and Yeung (2001) found out that consumers whose behavior tends to be influenced by the availability of information on the internet when making online purchases are more likely to navigate away from website with insufficient relevant information. Whether businesses are selling goods or services, the key functionality and interoperability features, key technical or contractual requirements, limitations that might affect a customer’s ability to acquire, access or use the good or service, safety and health care information as well as age restrictions should be stated. 

Finally, businesses should feature a clear and an unambiguous confirmation process after the duration of payment is due, else the customers are contractually bounded. The confirmation process should come with a summary of their purchases which include the items, delivery and pricing information so that customers can take a final look at their order and make modification if necessary. Next, if customers do not provide expressed and informed consent, businesses should not carry on the transaction. Also, businesses should allow customers to keep a complete, accurate and durable record of the transaction that is compatible with their technology devices.