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- Our New Report on CNP Fraud in Event Ticket Sales August 15, 2017
All posts with the tag International Orders
It’s no secret that millennials spend a lot of their money shopping, and unsurprisingly 67% of younger consumers prefer purchasing online. US college students alone have an estimated buying power of $523 billion, and with a lifetime of online shopping ahead of them, they are a highly lucrative eCommerce growth engine.
Yet many retailers fail to consider how their approach to fraud is preventing the maximization of profits from college-aged consumers. In this blog, I share some insights about their importance as a consumer demographic. Better understanding fraud patterns can assist merchants in nurturing these young customers and tapping into this safe revenue stream.
AVS (Address Verification System) was designed to combat CNP (Card Not Present) fraud. The idea behind AVS is simple: cross-referencing the numeric elements of the billing address provided by the buyer with the numeric portions of the billing address on file at the credit card issuer will enable merchants to verify that the buyer is the rightful cardholder.
Payment processors encourage merchants to set automatic AVS mismatch filters as an anti-fraud measure. However, many merchants who use these filters do not realize that a full AVS match does not ensure a transaction isn’t fraudulent. On the flip side, orders with AVS mismatches are often legitimate. In this post, we will show why rejecting orders solely based on AVS information is a bad idea.Read More
In 2016, the Middle Eastern eCommerce market was worth around $5 billion – a figure that’s expected to double by 2018. The region, as a whole, has tremendous potential. The digital share of retail in the Gulf states is a mere 1-2% of the total spent, compared to around 15% in more mature markets. To add allure, the average value of an online order placed in the Middle East is currently 50% higher than the rest of the world. The point is clear: The Middle East is a market that eCommerce retailers seeking to grow their business can no longer afford to ignore.
Many online merchants, however, continue to lose out on profits from this up-and-coming region due to their fear of Card-Not-Present (CNP) fraud. Some simply deny international credit cards. Others accept international cards, but fail to adapt their fraud review processes to account for cross-border transactions, resulting in high rates of false declines. Either way, retailers need to ensure they have the infrastructure, and are prepared to handle an increase in sales from this promising market.Read More
Chinese consumers purchased $589.6 billion worth of goods online in 2015, around 70% more than their US counterparts. In 2019, it’s anticipated that this figure will rise to an annual expenditure of $2 trillion – almost 4 times more than what Americans are expected to spend.
Unfortunately, international eCommerce merchants continue to miss out on some serious revenue from this burgeoning customer segment due to a fear of Card-Not-Present (CNP) fraud. As China celebrates the beginning of a new lunar year, I thought I’d take the opportunity to discuss some of the ways online retailers can increase their chances of successfully tapping into the most lucrative eCommerce market in the world.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
Now’s a great time to be a US-based online retailer. Not only is the eCommerce market constantly growing, but also a larger portion of holiday shopping is moving online. In fact, US consumers estimate that online purchases will account for 46% of their 2015 holiday shopping.
Purchases by customers located outside the US, also known as cross-border sales, hold an even greater potential for US retailers. The global B2C cross-border eCommerce market was worth $230b last year, and 82% of global consumers reported making an online purchase from a merchant based outside of their home country. Especially during Black Friday and Cyber Monday, international consumers will most likely be looking to take advantage of US sales.Read More
The global B2C cross-border eCommerce market was worth $230 billion last year, and is predicted to grow significantly hitting $1 trillion by 2020. Reshipping companies, which accept a package on the customer’s behalf and then forward the parcel to its final destination, play a central role in enabling cross-border eCommerce. This is especially true in emerging markets, which are projected to experience the strongest growth.
Online retailers generally consider reshipping companies, also known as parcel forwarding centers, freight forwarders, and reshippers, as a fraud indicator. This is because similarly to proxy servers, consumers can use rehsipping services to conceal their real location. The fact that risk scoring services will often trigger fraud alerts on orders shipping to reshipping companies also contributes to their negative reputation.
While it’s true that fraudsters use reshippers to try and cover their tracks, many legitimate customers also rely on these services. Merchants utilizing blacklists or rules-based fraud management systems are most probably unwittingly declining legitimate orders sent to reshippers. Whether you already sell globally or plan to start accepting non-domestic orders, it’s important to ensure you are well-equipped to accurately review international orders for fraud. In this article, we lay out the legitimate reasons for using reshippers and provide tips for distinguishing between the good and fraudulent orders.Read More
In the days when there was no Internet, nearly every business was local. There was no way small retailers could reach customers outside their geographical territory. But things changed dramatically with the emergence of the Internet and the advent of eCommerce. Nowadays when you decide to sell something online, you can have customers from any corner of the planet. Many retailers have an overwhelming urge to become global eCommerce brands; and why not? Every business needs more and more customers to grow, right?
But selling in the international market can be altogether different to what you may expect if you don’t have experience in cross-border eCommerce. You can not just make an international website for your US or UK business and expect to sell the same way in every country across the world. Having a multi-currency drop down menu on the website and accepting payments via credit card doesn’t make you a global seller. A lot more planning and execution work is required to develop an international market for your brand and it can be a long but rewarding journey for your eCommerce business. In this article, we want to provide advice about some critical steps involved in building a successful, global eCommerce brand.Read More
Deciding to expand into new markets is complex and goes well beyond simply trying to increase sales. The challenges are especially true for online merchants who must extensively evaluate the advantages against the associated risks and challenges of launching outside their domestic market. Allowing any customer with internet access to engage with a brand is incredibly powerful, but opening the metaphorical doors of an ecommerce business internationally comes with a unique set of challenges.
In particular, it’s important to consider how your fraud prevention team will adjust to the influx of orders that bring additional complexity: How do you begin to piece together a customer’s story when you receive an order from an unfamiliar location? How can you evaluate the validity of an order when you have no reference point?Read More