Abstract:

Much attention is dedicated to the Web, its potential and the risks that it holds for marketing and selling products and services online. In the context of business-to-consumer (B2C) electronic commerce (e-commerce), the consumer not only compares product and pricing alternatives, but also the risks associated with conducting the transaction online. While the use of e-commerce is growing, there is also a growing hostility from non-users and from previous users who have determined not to return. This paper will explore SMEs that have developed start-up Internet based e-commerce businesses in Australia and the methods they have engaged to continue to maintain trust and loyalty after the initial trust has been established, given their limitations of established reputation, budgets and infrastructure. It concludes that trust once gained is very fragile requiring constant vigilance, essential to overcome the risks that will sustain trust and loyalty in clients. In conclusion this paper offers guidelines for new B2C e-commerce SMEs to assist in reducing security and business risks.