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BizReport : Ecommerce archives : January 20, 2017

Ecommerce Roundup: As digital increases, so does fraud

While 2016 showed a marked increase in overall digital commerce, online and mobile buyers weren't the only increases. One report indicates fraudulent purchase attempts are also on the up.

by Kristina Knight

First, the good news: smartphones and tablets are pushing more sales, as seen through the holiday season. According to Fluent's Devices and Demographics report, which found that 45% of women and 39% of men made mobile purchases during 2016.
As to what mobile shoppers would like to see improved: simpler navigation and faster load times are the top two improvements, with improved security also making the list.

An increase in digital shopping wasn't the only thing going up over the holiday season. ACI Worldwide has looked into ecommerce fraud during the 2016 holiday season, and their data shows an increase in attempted fraudulent purchasing of 31% YoY. Researchers estimate that 1 in every 97 transactions was a fraudulent attempt.

"Over the 2016 holiday shopping season, merchants experienced significant growth in their digital channels, coupled with a substantial increase in fraud," said Markus Rinderer, senior vice president, Platform Solutions, ACI Worldwide. "Given the consistent and alarming uptick in fraudulent activity on key dates, merchants must be proactive in their efforts to identify weak points--and define short and long-term strategies for improved security and enhanced customer experience."

ACI Worldwide says the highest number of fraudulent attempts happened on Christmas Even and Shipment Cutoff Day. On average, fraudulent tickets were worth about $228.

In addition to increased fraud, the onslaught of deals throughout the year - not just at the holiday season - is causing retail fatigue, according to First Insight. Their new report found that 45% of female shoppers won't go into a store without first seeing markdowns of at least 41%.

"This new markdowns-focused shopping mindset is hurting the entire retail industry as deep discounts have completely shifted the way consumers view an item's worth," said Greg Petro, CEO of First Insight. "Retailers need to stop relying on markdowns to solve their problems, and instead, re-examine their pricing strategies and invest in technologies like predictive analytics to learn more about what their customers value most."

About one-third believe they find the best deals at discount retailers like Walmart, 26% say they find the best deals at department stores like Macy's.

Tags: ACI Worldwide, ecommerce, ecommerce trends, First Insight, Fluent, M:Commerce, mobile commerce, mobile marketing

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