Abstract
This paper presents a model conceptual framework that is aimed at promoting trust in the online retailing environment in the Kingdom of Saudi Arabia (KSA). Despite rapid Internet growth, the development of online retailing in Saudi Arabia continues to progress very slowly compared to that of the developed and leading developing countries. To determine the reason behind the sluggish growth of online retailing in the KSA, a mixed methods study involving retailers and customers was conducted in four stages. The outcomes of the study point to distrust in the online retailing environment in Saudi Arabia as a key inhibitory factor for growth. As such, a five-part model is proposed to promote trust in the online shopping environment in the KSA.
Highlights
The electronic commerce (e-commerce) revolution started in the 90s in much of the developed world
Lack of trust can be defined here as fair to use the online environment as a means to purchase online because online retailing is new in the Kingdom of Saudi Arabia (KSA) and there is a lack of regulation for this new type of business
Poor delivery system/infrastructure, ICT infrastructure and the non-existence of an e-commerce law all contribute to the distrust in the online environment in terms of conducting purchase transactions
Summary
The electronic commerce (e-commerce) revolution started in the 90s in much of the developed world. Since 2000, the rapid growth of e-commerce activities among developed countries has been obvious. Global e-commerce spending is worth about US$10 trillion at present compared to US$0.27 trillion in 2000. The United States, followed by Europe, constitutes the largest share with about 79% of the global e-commerce revenue. The African and Middle East regions, on the other hand, have the smallest share with about 3% of the global e-commerce revenue (Kamaruzaman, Handrich & Sullivan, 2010). While developed nations have become familiar with e-commerce, it is still considered an innovation in Saudi Arabia. Rogers (2003) defined an innovation as an idea, practice or object that is perceived as new by an individual or other unit of adoption
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