Authors: Ms. Durga P, Ms. Ruman Afrin S, Mrs. Jeya Padma Deepa I
Abstract: The rapidly expanding digital marketplace, trust has become a fundamental factor influencing In transactions between consumers and unfamiliar sellers. Unlike traditional markets, digital environments lack physical interaction, making buyers more vulnerable to uncertainty, perceived risk, and opportunistic behavior. This article examines how trust is developed between strangers in online markets and the mechanisms that enable users to engage confidently in digital transactions. It explores the role of technological features such as secure payment systems, encryption, privacy policies, and platform design in reducing risk and enhancing credibility. Additionally, social mechanisms including customer reviews, ratings, word-of-mouth communication, and reputation systems are analyzed as powerful tools that influence trust formation. The study also highlights the role of digital platforms and intermediaries in acting as trust facilitators by enforcing rules, resolving disputes, and ensuring transparency. Furthermore, the article discusses challenges such as data breaches, fake reviews, and online fraud, which threaten consumer confidence and trust sustainability. By reviewing existing studies and real-world practices, the article concludes that trust in digital markets is a dynamic and multi-dimensional process shaped by technological assurance, social validation, and institutional safeguards. Strengthening these elements is essential for encouraging participation, repeat transactions, and long-term growth in digital commerce.
DOI: http://doi.org/10.5281/zenodo.20615128
