e-Business trust concepts based on seals and insurance solutions

Consumers have embraced the concept of e-commerce although less enthusiastically than expected. Major concerns still exist regarding the use of the Internet for private purchasing. Trust is seen as a factor that is becoming increasingly important for both consumers and content managers alike. Various trust-related support features for online transactions are available, but most lack any form of guarantee or insurance for the parties involved. In this context, the paper seeks to explore the concepts and potential contributions of contract-based guarantees and insurance services with regard to business-to-consumer online transactions. After an inventory-taking of available seals of approval and insurance solutions for B2C online transactions, the paper drafts a research framework for investigating different insurance models. The case of ‘Trusted Shops’, backed by a German insurance provider, illustrates the concept of insurance solutions and analyzes benefits and risks for all parties involved. The potential advantages and limitations of extending the concept along the dimensions ‘scale’ and ‘scope’ are presented. The paper concludes by providing some suggestions for further research.

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