Building trust: Crucial factor in e-commerce

CEBU, Philippines -  Many people appreciate the speed and ease of doing a digital transaction but one thing that remains a big challenge until now in the e-commerce is earning customers’ trust, believed to be the key driver of the industry.

While online companies are getting traction in the web market, establishing trust has stayed “a big thing” in both buying and selling via the internet specifically for Filipinos, said Steve Santos, country manager of Property24, a South African real estate website.

“That’s the problem kasi the buyer will never transact with a seller whom he or she does not know,” he told The FREEMAN in an interview. “There is the ‘suki’ mentality kasi that suggests that a purchase needs to be done first, after that’s when the ball starts rolling.”

Santos has observed that while online and mobile commerce is continually growing in a country like the Philippines where internet users are increasing and where people are adopting new technologies faster than ever, it still faces unique challenges.

Several consumers tend to have a distrust to e-commerce mainly because of the fact that they have low confidence that their transactions will be handled securely, he noted.

However, online customers must always consider the reputation and background information of an e-commerce business, Santos has advised, saying that sellers too, for their part, must adhere to transparency to establish trust among their clients.

Operators of e-commerce, considered to be the emerging business model today, should significantly focus on consumer trends and innovate on new ways to attract them and generate traffic in the virtual scene, he further added.

He also said that a good digital marketing strategy is critical and offering a fresh content all the time attracts more visitors, thus generating online traffic.

Online property portal

The manager said it is significant to note that internet penetration in the country is increasing, a reason why the Africa-based property portal has capitalized on the booming Philippine real estate industry.

He said they deal with reputable and accredited real estate agencies, brokers and developers, adding that “we make sure they are legitimate sellers of properties” that are both residential and commercial.

Potential buyers especially the home hunters and property brokers can see the site’s property listings and transact through a business-to-consumer system. It means that a certain business sells something through a digital interface to a consumer.

The online portal only allows licensed brokers in the list making sure of professionalism and assurance to customers that the system is legal.

Being the second largest city, he believes that Cebu is undeniably a good market where both sellers and buyers are present: “The truth is the Cebu market is really dynamic. Both sellers and buyers are here because in some areas in the country there are more sellers than buyers.”

The portal’s demographic data shows that most of the buyers or visitors in the site are aged between 24 to 40 years old and those who hold a higher socio-economic status in the society.

Property24 practices the B2C system because it has mostly partnered with big real estate developers while its sister company, OLX Philippines concentrates on the consumer-to-consumer model.

The C2C model means that the e-commerce portal works to become the avenue of the transaction between the two consumers.

He explained that if an individual is into the business of property selling, he can possibly list with a real estate site while a homeowner who wants to sell his property can go to a buy and sell site.     

Santos shared that currently their site has almost a hundred registered brokers, around 50 agencies and close to 40 property developers, adding also that banks selling leased properties also list with them.

On another note, Santos expressed his reaction on the expected economic integration saying players in the property industry must be ready to become competitive ahead of the ASEAN Economic Community’s formation next year.

“You know the biggest challenge really is to adapt because the market is going to open up for all,” he said. “You don’t just compete with Cebu sellers but also with the region (ASEAN).”

He expressed confidence that the nation is in a very good position already especially in the field of e-commerce considering the fact that most Filipinos are becoming more tech savvy.

“People are gonna transact online and eventually a lot of these transactions are going to be done virtually,” he said.