Abstract:
The purpose of this study is to investigate the factors influencing building consumers’ initial trust in
e-commerce in Bahir Dar Town. The University academic staffs were chosen as the research
population for this study. Quantitative research approach with explanatory research design was
employed. The variables used in the research were formulated based on the extant literature
review which includes Product characteristic, Website design quality, Support factor, Security and
reputation, Purchase characteristics as determinant variables and the initial trust in e-commerce
adoption as an outcome variable. Thus, Also, it is recommended that advertisements especially in virtual
social networks as an important variable to build initial trust because of the absence of human touch and
communication in e-commerce, comparing the situation of traditional transaction with real
environment when consumers give their satisfaction of products by experiencing them physically,
online initial trust has a basic role in e-commerce due to COVID 19 and modernity thought out in
this dramatic world.
A total of 130 usable questionnaires collected from respondents using convenience sampling method
were analyzed using SPSS version 23 software. The results show that that website design quality,
Security and reputation, Purchase characteristics and Advertising Factor positively contributes to
his/her trust in e-commerce. On the other hand, the purchase characteristics and Support factor
will have insignificant on consumers initial trust in e-commerce.