Latin American consumers leapfrog other global regions in
embracing e-commerce channels
NEW
YORK, Feb. 21, 2024 /PRNewswire/ -- Consumers
who shop on e-commerce platforms trust them more than the companies
selling their goods through those digital channels, a new survey
from Chubb reveals.
This trust gap is most evident among the growing segment of
shoppers who have embraced social media commerce sites, with 85%
saying they trust social media marketplaces. That's in contrast to
the companies that sell their goods through this channel. A
significant majority of e-sellers don't trust social media commerce
sites when it comes to managing inventory (75%), handling refunds
and returns (69%), shipping and fulfillment (67%), payment
processing (65%), and security and privacy (58%). These are among
the key findings in Crossing the e-commerce trust divide, a
global survey of consumers and e-sellers commissioned by Chubb and
conducted by iResearch Services.
Among consumers who shop online through both e-commerce and
social media platforms, three out of four report they have
experienced financial fraud, and more than half (55%)
have had payments lost due to glitches. More than two in five (42%)
say they frequently receive damaged goods.
"Whether it's on social media or on e-commerce platforms, the
customer journey must be simple, easy and give the consumer
confidence – their trust is fragile," said Amy McNeece, Senior Vice President, Digital
Consumer Partnerships for Chubb in North
America. "Delivery issues, damaged products and online scams
can all shatter consumer trust in an instant, and customer loyalty
is critical in the age of digital commerce."
The study also shows regional differences, with consumers in
Latin America purchasing from
e-commerce platforms more frequently than those in North America, Europe and Asia. "Latin
America's fast-paced online shopping reveals a savvy digital
consumer," said Gabriel Lazaro,
Executive Vice President, and Head of Digital for Chubb's
international general insurance business. "This has been driven by
mobile and social media leapfrog behaviors during the last decade.
The emerging middle-class consumer has access, thanks to e-commerce
platforms, to a wider and broader range of services than through
traditional channels."
Other key findings:
- Nothing about e-commerce is more important to
consumers than payment security. Nearly eight in 10 consumers
globally say the security of the payment platform is their top
concern.
- Heightened trust in social media marketplaces is not limited
to Gen Z, or women. The generations born after the Baby Boomers
– Gen Z, Millennials and Gen X – tend to be more comfortable with
social media commerce than with other sales channels. Men tend to
use social media platforms for shopping more than women by a gap of
61% to 31%. Gen Z, the youngest age group surveyed, shop through
social media at twice the rate of Gen X shoppers.
- Latin American consumers are the most frequent users of
online stores among the regions surveyed. One in four (25%) of
Latin American respondents shop online several times a week – twice
the rate of consumers in other parts of the world. In addition,
nearly three-quarters (74%) visit and purchase from e-commerce
platforms at least several times a month compared to 62% of North
American, 59% of European and 56% of Asian respondents.
- Consumers say having insurance would increase their
confidence in making online purchase – but they are
sensitive to price. A majority of consumers say having
insurance would increase their confidence in making online
purchases. 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.
There is one area where consumers and e-sellers are aligned:
they both want a more secure end-to-end shopping experience. "The
availability of online insurance can contribute to building and
maintaining trust," said McNeece. "That's particularly true for
smaller businesses that need to think about how to build and
protect their brands and get repeat customers."
Methodology
The survey, commissioned by Chubb, was conducted by iResearch in
November 2023 among 500 consumers who
purchase through online channels, including e-commerce platforms,
social media marketplaces and digital storefronts, and 525
e-sellers who sell through these online channels. The survey,
conducted online and compiled by iResearch, consisted of consumers
and e-sellers from North America,
Europe, Asia, and Latin
America. Thirty percent of consumers in the survey are based
in Europe, 30% in North America, 25% in Asia-Pacific, and 15% from Latin America. The survey also represents a
global range of e-sellers: 32% are based in North America, 31% from Europe, 20% from Asia Pacific region, an 18% come from
Latin America.
About Chubb
Chubb is a world leader in insurance. With operations in 54
countries and territories, Chubb provides commercial and personal
property and casualty insurance, personal accident and supplemental
health insurance, reinsurance and life insurance to a diverse group
of clients. As an underwriting company, we assess, assume, and
manage risk with insight and discipline. We service and pay our
claims fairly and promptly. The company is also defined by its
extensive product and service offerings, broad distribution
capabilities, exceptional financial strength, and local operations
globally. Parent company Chubb Limited is listed on the New York
Stock Exchange (NYSE: CB) and is a component of the S&P 500
index. Chubb maintains executive offices in Zurich, New
York, London, Paris, and other locations, and employs
approximately 40,000 people worldwide. Additional information can
be found at: www.chubb.com.
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SOURCE Chubb