Research On A Multi-dimension Trade Risk Evaluation Model Based On C2C E-commerce

E-commerce,as a new business model,brings unlimited business opportunities andrevolutionary change. Especially C2C e-commerce platform such as Taobao, eBay, havebeen rapidly developed in the domestic market, However, there is potential risks due to thevirtual, openness and freedom of network environment.In view of consumers, combining with the knowledge of computer applications,mathematics, economics, psychology and other disciplines. The transaction risk inE-commerce is divided into the subjective risk and the objective risk in this paper. Withthe qualitative analysis and quantitative analysis to risk, a correction factor is introducedto integrate subjective risk and objective risk. Then a Multi-dimensional Transaction RiskEvaluation Model (MTREM) is proposed for e-commerce based on the qualitativeanalysis of the subjective risk and the objective risk, which evaluates the transaction riskdynamically and quantitatively in terms of the reviews from former buyers, thecommodity price, the consumer’s income and the transaction experience.Simulation experiments are described with comparative analysis by using the actualtransaction data from e-shops in Taobao. Analyzing the various risk factors on the tradingrisks by using Matlab, which verify the scientific and effective of MTREM. The numericalresults show that the MTREM is consistent with the qualitative analysis from existingacknowledged researches. Moreover, the risk factors in this model are morecomprehensive and the numerical result from MTREM is quantitative and easy to beunderstood and applied.Finally, a risk assessment system is designed and implemented, which is appllied tothe current e-commerce system, the structure and each module of the system has beendesigned and tested. The test result verifys the feasibility and practicality of the MTREM.