Impact of E-Commerce informality on consumer trust and loyalty: Empirical evidence in emerging markets

Abstract

The growth of e-commerce has transformed emerging economies, but it has also driven informal practices that operate outside of regulatory frameworks. Despite its expansion, its behavioral effects have been little studied. This paper analyzes how informality in digital platforms influences consumer trust and loyalty, considering the mediating role of trust in an emerging market. Based on the Stimulus-Organism-Response (S-O-R) model, a quantitative approach is employed with data from 354 consumers with recent experience in online shopping. PLS-SEM validates the measurement and structural models. The results show that informality negatively impacts both consumer trust and loyalty. In turn, trust positively influences loyalty and partially mediates the relationship between informality and loyalty. This shows that informal practices generate uncertainty that weakens the building of trust and affects long-term relationships in digital environments. The study contributes to the literature by integrating informality as a central construct and extending the S-O-R framework to informal digital commerce. In addition, it offers evidence from an emerging economy, filling a geographical gap in previous research. Their findings are relevant for platform managers and policymakers aimed at strengthening trust, sustainability and formalization of e-commerce.