The Contribution of E-Commerce Shipping Insurance Features in Shaping Online Repurchase Intention
This research article examines the contribution of e-commerce shipping insurance features in shaping online repurchase intention in Indonesia. With a high internet penetration rate of 202.6 million users and 167 million mobile users, e-commerce has witnessed significant growth in the country. The increasing number of internet users and the COVID-19 pandemic have contributed to the surge in online shopping activities. The availability of digital infrastructure and innovative products, such as video conferencing, e-learning, video streaming, and e-commerce, has transformed the Indonesian economy into a potential digital economy. E-commerce, in particular, plays a crucial role as one of the key drivers of the national economy.
To regulate the growing e-commerce industry, the Indonesian government has issued various regulations to ensure compliance with digital trade laws. These regulations require e-commerce platforms to adhere to specific standards and protect consumers from fraudulent practices. The number of online transactions has continued to rise, driven by the wider access
to the internet and the increasing number of people staying at home during the pandemic. This growth has led to the emergence of several unicorn startups in Indonesia, with marketplaces being a prominent sector.
The COVID-19 pandemic has significantly impacted various aspects of Indonesian society, including the economy, social interactions, and cultural practices. The implementation of large-scale social restrictions and quarantine measures has affected economic activities, including offline transactions in public places. Consequently, online shopping has experienced a substantial boost during the pandemic. E-commerce platforms offer shipping insurance features to protect buyers from potential risks, such as damaged or lost goods during the delivery process. This feature instills confidence and a sense of security among consumers, thus increasing their repurchase intention and strengthening the reputation of e-commerce businesses.
The research examines the relationship between e-commerce shipping insurance features and consumer behavior, considering factors such as brand awareness, perceived value, and customer engagement. The findings highlight the importance of shipping insurance features in enhancing consumer trust, satisfaction, and loyalty. Moreover, it discusses the influence of social media marketing on brand awareness and perceived value, which further contributes to consumer engagement and online repurchase intention. The study also addresses the tendency of Indonesian consumers to deactivate the shipping insurance feature, suggesting a need for further investigation and potential strategies to encourage its utilization.
This research article provides valuable insights into the role of e-commerce shipping insurance features in shaping consumer behavior and online repurchase intention. It contributes to the existing literature by addressing the research gaps in the field and offers practical implications for e-commerce businesses and policymakers.
Keywords: E-commerce, Shipping Insurance, Online Repurchase Intention, Customer Behavior
