Trust and Risk in Cross-Border E-Commerce: Consumer Perceptions

Abstract

This study aims to explore the perceptions of trust and risk among Vietnamese consumers in cross-border e-commerce transactions, while also analyzing the balancing mechanism between these two factors in the purchasing decision-making process. Employing a qualitative research method with a phenomenological design, the study conducted 24 semi-structured indepth interviews with consumers experienced in cross-border shopping in Hanoi, Ho Chi Minh City, and several other cities from March to July 2024. Data was analyzed using a six-step thematic analysis method. The research findings indicate that consumer trust is formed from four main sources: trust in the platform, the seller, the payment system, and the review community, with the e-commerce platform playing a pivotal role as a third-party guarantor. Consumers perceive six specific types of risks, including product risk, shipping risk, customs risk, payment risk, warranty risk, and language risk. To balance trust and risk, consumers adopt five strategies: seeking information from multiple sources, limiting order value, selecting suitable products, weighing benefits against risks, and accumulating experience. These findings provide significant implications for e-commerce platforms in strengthening buyer protection policies, for international sellers in building credibility, and for policymakers in refining the legal framework for consumer protection. The novel contribution of this study lies in extending the multi-dimensional trust analysis framework and adding specific risk types to the academic literature on cross-border e-commerce in the context of an emerging market.