Online Businesses Must Earn Market Trust To Reach Full Potential
Maximizing the potential of Internet and E-commerce requires more trust in the markets, especially in developing countries, by protecting consumer rights and preventing cybercrime, a senior UNCTAD official said.
50% of The population in developing country have no access to internet, which is a big barrier to reaching this potential. For Africa, this is a staggering 75% of total population.
Since E-commerce is growing rapidly, from $16 trillion in 2013 to $22 trillion in 2015 – holds opportunities to generate jobs and incomes in developing countries. Analysts say e-commerce also offers a more stable market than, say, commodities, and a better source of growth than manufacturing given that trade growth for physical goods is sluggish at best.
However, the UNCTAD official emphasized on coordinated global effort to boost trust in customers. “Looking to the future, however, consumers will need coordinated international protection from both cybercrime and market power so that they feel safe to buy online,” he added, ahead of a meeting in Geneva on internet governance.
In Bangladesh, customers face immense inertia while buying online with their plastic money and they prefer Cash on delivery over pre-payments. While COD offers many benefits, E-commerce business needs more easy payment mechanism and must earn customer trust to flourish.
Industry insiders are supporting the need for a coordinated awareness campaign at the national level to boost customer trust while repealing malpractices by some quarter.
Nezam Uddin is a Co-founder at Future Startup and looks after finance.