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 (BOPIS) 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
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 a fraud management solution that understands the fashion industry in and out, 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. 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 a good idea at first, but could be a bad move in terms of customer experience, as there are many legitimate reasons customers would want to reroute. Sometimes customers prefer to reroute to their workplace, or to have gifts shipped to an alternative address to maintain the element of surprise. So how can merchants protect themselves 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
Another epic Merchant Risk Council conference is in the books and the Riskified team feels fortunate to be a part of such an incredible community. Joining over 1,500 attendees from across the globe to learn about industry trends and share best practices is always one of the year’s highlights and the 2016 conference stood out as we were voted the winner of the prestigious MRC METAward.
Throughout the four days at MRC Vegas, we had the opportunity to meet with and learn from many partners, retailers, and industry experts. It’s evident the challenges of managing online fraud continue to evolve and are only exacerbated by the rapid growth of eCommerce and international expansion. The show gave us with a chance to share our insights and to present our strategies in tackling these challenges during several sessions led by the Riskified team.Read More
Exotic goods from lands afar have captivated minds since the dawn of humanity. For thousands of years, camel trains and ships carried goods from distant lands. More recently, travellers would sail or fly abroad, filling suitcases to the brim with local fashion and memorabilia. Today, we still seek the “alluring” and the “different,” and competition has added “bargain” to the list. But there’s no need to board a plane. We can simply launch a web browser from the comfort of our own homes to experience the back-to-back sales and endless choices that eCommerce has to offer.
Cross-border sales, meaning purchases made by residents of one country from a business based in another, account for 25% of all eCommerce orders today. This global market is growing rapidly and is expected to reach an astounding $2 trillion by 2018! In this post, I share best practices for online retailers looking to seize this opportunity and grow revenue from international consumers.Read More
In the weeks leading up to International Women’s Day, research groups and media outlets publish reports on women’s status in society and on the gender gap in countries across the world. As an eCommerce fraud prevention company, we figured Women’s Day is a good opportunity to assess the state of women in online fraud – are female consumers more or less likely to commit fraud? Are professional fraudsters mostly male or are they an egalitarian bunch?
To answer these questions, we analyzed hundreds of thousands of eCommerce purchases placed with retailers around the world – and we’ve laid out our findings in the following post.Read More
As the eCommerce market continues to grow, so does card-not-present fraud. However, many online retailers don’t realize that more money is lost to false positive declines – purchases wrongly identified as fraud attempts – than is lost to actual CNP fraud. For retailers, there’s no simple way to determine how many of the orders declined due to suspected fraud should actually have been approved. But just because it’s not easy to quantify, doesn’t mean it’s not an important problem.
We created this infographic to shed light on false declines – the silent revenue killer. The infographic is based on Riskified’s internal data as well as on research conducted by Javelin Strategy. By illustrating the scope of the false declines issue, we hope to show retailers how much they stand to gain by working to eliminate this problem.Read More