With over 1.2 billion international tourist arrivals registered worldwide in 2015, the online travel industry is experiencing an explosion in demand. Online travel merchants can take advantage of the growing number of travelers who use digital channels to book their flights. Digital travel sales in the United States alone were valued at over $200 billion in 2015, and globally, it is projected that online travel revenues will reach $762 billion by 2019.
Riskified’s work with leading travel merchants, as well as Fortune 500 companies across verticals, has given us great insight into helping merchants overcome the CNP fraud challenges they face. We are currently in the process of compiling a report sharing data about fraud patterns in online travel, and best practices for travel merchants looking to safely increase approval rates. Following is a sneak peek at the report, which will be published in the coming weeks.Read More
As the global eCommerce market grows and fraudster methodology evolves, new fraud management approaches and tools are being introduced at a fast pace. Trying to stay on top of developments in the eCommerce fraud prevention landscape can be overwhelming and time consuming.
Riskified is proud to present the eCommerce Fraud Solution Buyer’s Kit, a comprehensive series of resources designed to guide executives, decision makers, and procurement professionals through the process of assessing current fraud management performance and understanding which available approaches and solutions can best meet their needs.Read More
The global eCommerce market is booming with shoppers of every age and background buying online. In brick-and-mortar stores, recognizing and addressing customers’ needs is relatively straight forward, but for eCommerce merchants, learning to gauge the shopping experience can be challenging. It is not always easy to understand what brings customers back to a site or shopping app and what may be turning them away.
Riskified joined forces with user-generated content platform Yotpo to create the following infographic, which provides eCommerce businesses with stats demonstrating the importance of the online shopping experience and offers advice for enhancing the eCommerce customer experience.Read More
For retailers, omni-channel sales is the new business imperative. Brands are now required to be anywhere and everywhere just to keep up with the competition and the line between digital and physical shopping is becoming increasingly blurred. From leading global luxury retailers such as Burberry and FarFetch, to large American retail chains such as Macy’s and Kohl’s – everyone is turning to new business flows to meet the demands of consumers.
One of the most popular omni-channel flow is allowing shoppers to buy online and pick up items in the store, commonly known as “Buy Online, Pick Up In-Store,” or “Click and Collect”. This flow holds a lot of potential for brick & mortar retailers. For starters, it’s in high demand. A recent study showed that nearly half of US consumers (44%) want the option to collect their purchase at a physical store immediately after purchasing online. But this shopping flow is also advantageous for retailers; it gets customers into physical store locations where they are likely to make additional purchases.
However, making customers happy requires not only offering the shopping flows they expect, but also great execution, and there are a couple of major challenges retailers need to overcome in order to successfully pull off in-store pickup. The first challenge is risk – this shopping flow exposes retailers to a myriad of fraud-related vulnerabilities. The second challenge is operational – retailers need to make sure the merchandise is ready to be picked up when the customer arrives in the store.
In this post, we will discuss the fraud-related challenges associated with in-store pickup, and explain how retailers can overcome them.Read More
Whether it’s coverage of Cinco de Mayo celebrations or proposals of building walls along the southern US border, Mexico has been getting a lot of press lately. Mexico is quite controversial not only in US politics, but in the world of eCommerce as well. On the one hand, it’s the 2nd largest eCommerce market in Latin America, with over 51 million internet users. More than half of Mexican eCommerce shoppers frequent international websites, with online purchases by Mexican consumers expected to hit $22 billion this year, and $40.8 billion by 2019. On the other hand, Mexico has a bad reputation when it comes to online fraud, with a chargeback rate 2.8 times higher than the global average in 2015. Fear of fraud leads many eCommerce merchants to shut their virtual doors to Mexican consumers.
In this post, I’ll share some stats that demonstrate how businesses who block Mexican orders are making a costly mistake – turning away many good customers and a lot of sales revenue. I’ll also provide tips for managing fraud from this market.
Ecommerce merchants spend significant time and money trying to optimize sales and the omnichannel shopping experience, only to harm revenue with conversion mistakes. This is especially the case in larger companies, as multiple stakeholders in separate departments often measure success differently. While Riskified usually focuses on fraud-related challenges and best practices, we are always happy to share expert advice about fixing the mistakes that lead ecommerce merchants to lose revenue.
Last week, Riskified sponsored a webinar with Practical eCommerce about mistakes ecommerce merchant make that add up to lost revenue. The webinar was led by ecommerce expert and online business consultant Pamela Hazelton. Rather than provide tips for new tools or processes to add to your ecommerce site, the webinar focused on things merchants are already doing today – and discussed how to optimize them to ensure ecommerce revenue is not negatively impacted. In the following post we recap some of the actionable tips Hazelton provided.Read More
Luxury fashion items are coveted by many, including fraudsters. Retailers selling luxury fashion items online must juggle between two goals that don’t always coincide: the desire to provide a smooth shopping experience and the need to keep a watchful eye on purchases to avoid fraud. The decision to approve or decline an online purchase due to suspected fraud is often difficult, and mistakes can be costly.
Riskified recently published an extensive report on fraud in online fashion and apparel sales, providing insight into fraud patterns unique to the industry. As a follow up, we delved deeper into our data to pinpoint trends that are specific to luxury fashion and to address the unique fraud-related challenges luxury retailers face. The following infographic paints a clear picture of fraud patterns in online luxury fashion sales. The data may surprise readers and we hope it provides insight that can help generate sales and growth, as well as enhance customer experience.Read More
As consumers increasingly go online to make their purchases, luxury fashion retailers are poised to realize huge gains in eCommerce revenue. It’s estimated that the market for online luxury goods will be worth more than 20 billion euros by 2018. Moreover, the move towards digital purchases will only accelerate this trend. Last year, US consumers were expected to spend half of their budgets for luxury fashion and accessories online.
Riskified works with many luxury fashion businesses – including FarFetch, Vestiaire Collective, and Ssense. Our experience with these retailers has given us great insight into what card-not-present (CNP) fraud patterns look like within this industry. In this post, I share these insights and discuss what measures retailers can take to protect themselves without negatively impacting sales.Read More
In October 2009, Sebastien Fabre founded Vestiaire Collective, an online marketplace dedicated to pre-owned luxury fashion. Five co-founders quickly joined the adventure. The goal was to make high-end clothing and accessories affordable by authenticating and controlling 100% of the catalogue, while providing easy and secure transactions for buyers and sellers alike. The company quickly grew into a huge success. Vestiaire Collective currently registers 20,000 new product deposits each week, 3 million monthly social interactions, and 5 million members.
But with rapid growth and international expansion, Vestiaire Collective was straining to provide consumers with a smooth shopping experience. The high growth luxury fashion marketplace needed a flexible, scalable, fraud management solution that would ensure customers received the experience and service they deserved. Partnering with Riskified achieved that goal.
Today, Vestiaire Collective provides fashion enthusiasts around the world with quick, smooth, processing – while at the same time enjoying high approval rates, a full chargeback guarantee, and reduced fraud management costs.Read More
Package rerouting is one of the oldest tricks in the fraudster book. It generally begins with stolen credit card details, and continues with an online order that appears safe, complete with the stolen card’s billing details and a matching shipping address. What happens next is a headache many merchants are unfortunately familiar with: fraudsters reroute the package and have the goods delivered to their location (instead of to the cardholder’s home). For the merchant, the goods are unaccounted for, and a chargeback ensues shortly thereafter. Rerouting schemes have caught the attention of merchants and shoppers alike. The method of operation is quite straightforward, but its perpetrators have devised some sophisticated ways to keep merchants off guard.
Completely blocking the option to reroute packages may seem like an option, but could be a bad move in terms of customer experience, as there are many legitimate reasons customers would want to change the shipping address after placing the original order. Sometimes customers realize they will be at work when the package arrives, and others may prefer to have gifts shipped to an alternative address to maintain the element of surprise. So how can merchants protect against this type of fraud without increasing false declines or creating unnecessary friction? In this post I’ll share some tips on how to undermine fraudster efforts and to avoid incurring the associated losses.Read More