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To sell or not to sell: Exploring sellers' trust and risk of chargeback fraud in cross-border electronic commerce

Research output: Contribution to journalArticlepeer-review

Yue Guo, Bao Yongchuan, Stuart J. Barnes, Khuong Le-Nguyen

Original languageEnglish
JournalINFORMATION SYSTEMS JOURNAL
Early online date1 Jun 2017
DOIs
Accepted/In press14 Mar 2017
E-pub ahead of print1 Jun 2017

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Abstract

Over the past few decades, chargeback fraud from buyers has been identified as a major risk faced by online sellers, particularly small- and medium-sized enterprises, in cross-border electronic commerce. However, most previous studies have focused on trust and perceived risk from the buyers' perspective and in domestic online marketplaces, while neglecting the importance of sellers' trust and perceived risk in the success of online transactions and the significance of cross-border transactions. To fill this gap in the literature, this study examines both the antecedents and the impacts of sellers' trust in buyers and their perceived risk of chargeback fraud on sellers' intention to trade with buyers in the context of cross-border e-commerce. To this end, we develop a conceptual model that identifies a set of institutional mechanisms to enhance sellers' trust and reduce their perceived risk. Hypotheses are tested via a survey of 443 sellers on DHgate.com, one of the major cross-border e-commerce websites connecting the small- and medium-sized enterprises of mainland China with overseas buyers. Our research makes concrete contributions to e-commerce research and generates useful insights for third-party online transaction platforms and online trade policy makers.

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