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Trust as an Enabler of E-Commerce
Abstract
E-commerce is a viable mode of shopping. Forrester Research Inc. estimates that the U.S. online sales will reach $316 billion by 2010, which accounts for 12% of total U.S. retail sales. However, security, privacy, and delivery concerns remain issues of concern to both buyers and sellers. Since trust alleviates these concerns, while the lack of trust prevents buyers from buying online, managing buyer trust is crucial. This article discusses how institutional and interpersonal mechanisms can increase trust by reducing social uncertainty. An illustrative example based on eBay is included.
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