How fulfilled the e-commerce service’s users are can be measured with a simple binary indicator (e.g., ok or not ok) or with a rating (e.g., 0 to 5 stars). Ratings are the most elementary mechanism to engineer trust. In particular, ratings help buyers and sellers build credibility and establish trust in the e-commerce service.

However, each additional user input:

  1. reduces the transaction velocity, cf.
    • “One Click Checkout” from Amazon or
    • “Stay Logged In” from PayPal;
  2. which also reduces customer lifetime value; and, in turn,
  3. the profitability of e-commerce services.

Hence, other metrics to measure the performance of the e-commerce service should be used.

References