Do Shipping Incentives and Platform Trust Reduce Customer Switching Behaviour? Empirical Evidence from E-Commerce Platforms in Malaysia

Abstract

The rapid expansion of e-commerce has heightened competition among online platforms, driving the use of shipping discounts as a key promotional tool. While such incentives aim to attract and retain customers, frequent switching across platforms raises concerns about their effectiveness in sustaining loyalty. This study investigates the effects of platform trust and shipping discounts on platform switching behaviour and repurchase intention among Malaysian online shoppers, employing the Push-Pull-Mooring (PPM) framework. Platform trust is conceptualized as a mooring factor that discourages switching, whereas shipping discounts act as pull factors encouraging migration. A quantitative research approach with 208 respondents was analysed using Partial Least Squares Structural Equation Modelling (PLS-SEM). The findings reveal that platform trust significantly reduces switching behaviour, while shipping discounts exert no significant influence. Moreover, platform switching behaviour negatively impacts repurchase intention and mediates the relationship between platform trust and repurchase intention, but not between shipping discounts and repurchase intention. These results extend trust theory within the PPM framework and underscore the limitations of price-based incentives in fostering loyalty. Practically, the study suggests that e-commerce platforms should focus on trust-building strategies alongside innovative service enhancements to improve customer retention in Malaysia’s competitive digital marketplace.