Leboncoin, Craigslist, Vinted… how can second-hand marketplace platforms build trust?

The Covid-19 outbreak has caused unprecedented disruption to trade across most sectors. This appears to be linked to changes in consumer behaviour, as consumers increasingly seek to consume differently and more responsibly.

It is in this context that we are witnessing growth of collaborative consumption. Second-hand shopping, which is one form of this phenomenon, is showing record numbers. In 2020, this market generated about 7.4 billion euros in 2020 in a hexagon.

In the same year, second-hand clothing sales worldwide alone amounted to $27 billion. According to Statista, this figure will double in 2023 and even reach $77 billion in 2025.

It should also be noted that more than half of the transactions were carried out on the used market made on the internet. The driving force behind its development are websites dedicated to second-hand goods, both general ones such as Leboncoin in France or Craigslist in the United States, and specialist ones such as Vinted.

These platforms act as intermediaries and connect individual buyers with sellers of goods without necessarily interfering with the terms of the transaction.

However, they do not always protect users from fraud and bad experiences. Our work I am particularly concerned with how the platform and the online retailer can inspire confidence in future buyers.

Risks are overlapping

The Association of 60 Million Consumers lists several such solutions forms of fraud on second-hand sales portals, e.g. receiving a product that does not comply with the regulations, counterfeiting luxury products, offering products with hidden defects, etc. On the part of sellers, we are dealing with dishonest buyers who baselessly demand a refund under the pretext of receiving products that are not in accordance with the description.

Several users are outraged by the platforms’ lack of response to a dispute. For example, one user reports:

“Either I didn’t get any response or I did get one.”

In the face of these risks, the issue of trust is therefore indispensable to ensure that the transaction runs smoothly. This is more crucial than with a time-honored sales site, because several risks overlap: those related to second-hand purchases, those related to collaborative consumption and, finally, those arising from online purchases.

In the case of used goods, trust is a prerequisite for buyers to be certain of the origin, quality and value of the used product. It is also a prerequisite for successful exchanges between people who have often never met before and who want to cooperate. This is all the more crucial in the absence of clear regulations governing transactions, especially if transactions take place online.

Reputation, Application, Certification

Therefore, we tried to understand the impact of common features of redistributive platforms on the formation of trust levels in both the seller and the service. The features studied were the ease of apply of the platform, its playful nature, the seller’s reputation, and recognition by third parties.

Ease of apply reflects the effort required to learn how to apply the site. Funniness refers to the consumer’s sense of pleasure during a purchase. Merchant reputation describes the level of honesty and sincerity of the seller that is reflected on the platform. Third-party recognition means the presence of a certificate from a trusted organization that guarantees its credibility.

This is evidenced by the results of a survey conducted among a panel of people buying used items on the Internet. Seller’s reputation positively affects both trust in the seller and the platform. This leads to the idea that consumers are making some kind of extrapolation. They may think that a platform that lists sellers with a good reputation is a trustworthy platform.

In the matter ease of apply and playful nature of the siteespecially seem to have an impact on trust in the seller. This can be explained by the fact that most consumers are quite familiar with the electronic environment, which makes it less crucial when it comes to trusting the platform. In the eyes of the consumer, being user-friendly may mean that it is uncomplicated to find a “good seller” with a “good product”, it is uncomplicated to make contact and complete the transaction.

The recognition of third parties ultimately remains a critical factor in trusting a platform. Consumers will be more likely to trust an organization that goes to significant lengths to obtain certification.

Building a robust brand

In the same sense, the study results also show that trust in the platform determines trust in the seller. There is a “transfer of trust”. Before trusting the seller, the user must trust the platform on which his ad is located. It acts as an intermediary to compensate for the lack of trust that can arise when buying used goods online.

Given this hierarchy of trust, it is crucial for platforms to build a robust brand that helps reduce the risks associated with second-hand purchases online. This can be achieved through awareness campaigns that emphasize its ability to protect users from any risk of fraud. Methods such as selecting trustworthy members who must adhere to a code of conduct or face removal can therefore be suggested.

Given the positive impact of platform ease of apply on trust in a seller, our study also encourages them to invest in advanced algorithms that allow users to easily find the ad that best suits their needs. The positive impact of fun on trust in a seller can also be reinforced through “gamification” mechanisms. This involves, for example, implementing a “badge” system that users can earn by completing various tasks. They could also indicate the seriousness and trustworthiness of the seller.

So much for the actions that seem increasingly necessary to support market changes and safeguard used online purchases, which several experts predict will soon outnumber fresh purchases.