What is trust?

What is business trust?

Does on-line trust differ from off-line trust?

What are the risks in on-line trading?

What can I do to increase customers' trust in my eMarketplace?

What is needed to determine the trustworthiness of an eMarketplace and its participants?

What do users do if they determine that an eMarketplace is not trustworthy?

How can my eMarketplace learn more about on-line trust?

What are the basic steps to building a trusted eMarketplace?

What is a Web site privacy statement?

What are data/information practices?

What is the status of eCommerce regulation in the United States?
 

What is trust?
Trust is having confidence in the integrity and ability of one to perform according to your expectations.

What is business trust?
Business trust is enabled when two or more entities know enough about each other's company and its policies, practices, terms, and conditions to make informed decisions about whether, and how, to do business together. Business trust involves committing to a long-term relationship or to a single transaction with confidence in the ability of the other entity to honor and deliver on an agreement, contract, or other expectations.

Does on-line trust differ from off-line trust?
In the traditional business world many factors lead to a trusted relationship between buyers and sellers. A face-to-face meeting, a handshake, a hand-signed contract-all play significant roles in the transaction. Transaction partners exchange information and compare shared experiences. They commit to a transaction only after carefully screening each other's business information. Sellers look for buyers' ability to pay; buyers' seek sellers' performance histories; and both want to know the other's business practices and policies.
None of these conditions are different online. Potential business partners still want to know about each other, to be assured that the deal is going to work out, and to trust that the transaction will benefit their companies. However, when transacting business over the Web, buyers and sellers are essentially "invisible" to each other. They meet in an anonymous network and experience no face-to-face contact. Decisions are made quickly online, often with little or no information about each other or each other's companies.
To create on-line business trust, both parties need the same information and assurances they would get in a face-to-face contact, and they need to know that the negotiations and Web site are as secure and confidential as a meeting or conference room.
A key difference for trust online is that everything is digital-which implies huge advantages for streamlining and making supply chain and sales processes more efficient. Information can be communicated broadly and negotiations can occur globally in real time. But because information and trading partners are digital online, the way that data is presented, stored, and shared also carries inherent risks. These risks must be mitigated with a complete system that incorporates a complex combination of security technology, business rules, processes, and reliable information on which to make informed decisions about when it is safe to trade, with whom, and under what circumstances.

What are the risks in on-line trading?
On-line trust, especially for business-to-business eCommerce, is a volatile issue because of the opportunities it presents and the size of the deals involved. With, potentially, trillions of dollars involved in eCommerce transactions, the stakes are high, and with issues of anti-trust and international trade involved, the risks can be daunting.
Consider the following list of buyers' and sellers' on-line transaction fears:
being deceived and defrauded when purchasing goods that may never arrive, or are of substandard quality
never receiving payment for goods delivered site spoofing or hijacking
authenticity of on-line bids and/or offers and about unreferenced partners' abilities to live up to their contract responsibilities
security of their on-line negotiations and transactions.
Fortunately, the tools needed to manage and mitigate the risks are now available. B2B eMarketplaces are starting to offer on-line trust services that can address each of these risks. With GeoTrust's Safe MarketTM suite of products and services, B2B buyers and sellers can use an integrated system to manage risks by:
performing due diligence online obtaining financing and insurance for transactions viewing and sending digitally-signed content having verified representatives of authenticated companies using secure Web sites.

What can I do to increase customers' trust in my eMarketplace?
There are several steps an eMarketplace can take to increase customers' trust:
Communicate with your site's buyers and sellers to let them know what you are doing to earn their trust and safeguard their privacy.
Integrate your business partners in your on-line trust strategy and seek their input.
Engage your employees in the process-build a business culture where customer trust is paramount.
Provide an automated process for authenticating all participants on your site.
Allow buyers and sellers to perform due diligence in real time as part of the transaction workflow. Make sure the content delivered from your site cannot be altered or spoofed.
Authenticate the content of negotiations and transactions.
Provide a secure vault for records of transactions should disputes arise later.
Offload the risk for the financial transaction and the performance of the seller.

What is needed to determine the trustworthiness of an eMarketplace and its participants?
According to an 18-month research project conducted jointly by GeoTrust and Ernst and Young, on-line buyers and sellers determine their levels of trust in an eMarketplace based on several factors, including:
- Company or product brand and its reputation.
- Clear and understandable disclosure of a company's policies, business practices, terms, and conditions.
- Performance track record of the quality, reliability, and availability of the product(s) or service(s) that are offered.
- Appropriate understanding of the policies and business practices surrounding the collection, storage, and use of confidential information.
- Security of on-line transactions and data storage.
- Certification and seals of approval from qualified third parties, such as certified public accountants and industry oversight groups.
- The user experience the site offers, including its look and feel, ease of search and navigation, and the relevance, quality, and availability of information.

What do users do if they determine that an eMarketplace is not trustworthy?
They may be hesitant to enter into a transaction or a transaction may never be completed if participants do not feel that an eMarketplace is trustworthy enough. They may altogether avoid buying and selling goods in that eMarketplace. A business-to-business site spends a lot of time, energy, and resources to build a community. On-line trust is one of the major components of an eMarketplace's stability and growth.

How can my eMarketplace learn more about on-line trust?
There are a variety of resources available to aid large and small eMarketplaces in the essential issue of on-line trust. See Safe MarketTM, read GeoTrust white papers regarding on-line trust services and security issues, or attend one of GeoTrust's seminars and workshops to learn more about building a trusted eMarketplace.

What are the basic steps to building a trusted eMarketplace?
Some things to consider as a starting point include:
developing a strategy for trustworthiness using GeoTrust's Safe MarketTM program assessing your organization's formal and informal policies regarding the collection, storage, and access of on-line data documenting your data practices that relate to buyers, sellers, employees, and business partners developing one or more statements that disclose to your customers, employees, and partners how you manage confidential information documenting your on-line business practices and comparing them to your stated policies training company personnel on your policies assigning a compliance officer or committee to review and track your policies and practices using outside services to help you design, monitor, and maintain your business practices disclosing your on-line practices publicly so that existing and potential buyers, sellers, and business partners will have confidence and trust when using your eMarketplace for on-line commerce.
Self-disclosure by eMarketplace participants is also a necessary step in building a trusted eMarketplace. This means that buyers and sellers should seek to publicly disclose, in easily understandable language, their on-line business policies and practices. The information should be complete enough for potential trading partners to make informed decisions about the levels and types of risks involved in doing business with each other. In this way, risks can be managed by each party to produce a successful business experience for both.
It is also recommended that eMarketplaces seek the advice and certification of outside parties with a demonstrated expertise in on-line trust and confidence. This advice and consultation will better equip them to develop ethical and secure business practices appropriate to the on-line business environment.

What is a Web site privacy statement?
It is a text statement displayed on a Web page that describes the Web entity's privacy policies and practices. It should include the guidelines for use of participant information collected by the site, how that information will be used, with whom it will be shared, under what conditions, and whether customers have the option to exercise control over this process. Since it is likely that eMarketplace participants will not take the time to read lengthy and complex documents online, a privacy statement is best when it is simple and direct.
Post a link to the statement prominently on the Web site's Home Page. Provide links to the privacy statement at each place where information is collected. Well-informed prospective buyers and sellers concerned about on-line privacy will often choose to leave a site if they are unclear about its privacy policies and practices.
Developing a statement can be a relatively easy first step in establishing a reputation for on-line trustworthiness. Make sure each policy described in the statement is accurate and be certain that policies in different statements do not conflict with each other, nor with applicable laws and regulations. Make sure your employees, new and existing, are adequately trained and know their roles in the implementation of the eMarketplace's policies. Be certain that business partners' policies are consistent with the eMarketplace's, especially when there is an exchange of data in order to facilitate the delivery of products and services.

What are data/information practices?
Data practices are the methods an eMarketplace uses to collect, store, secure, and retrieve data. They include policies that specify who has access to the data, how it is edited, and the way it is tracked.

What is the status of eCommerce regulation in the United States?
Laws and regulations vary from state to state and cover broad areas of eCommerce, including information privacy, fair trade, and the rights of buyers and sellers. There are also many industry-specific laws and regulations, such as those in healthcare, banking, and telecommunications that may affect a business transaction.
eMarketplaces also have instant national and international reach. As an on-line business, it is necessary to understand local, regional, and international commerce, data protection, and copyright laws that may affect the business practices and trade secrets of the eMarketplace and its participants. This area of law is changing and evolving so proactive eMarketplaces must also be aware of future laws and regulations as they develop.

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