Category: Kartify

Every day, the e-commerce industry is evolving, gaining greater clout and increasing profits. Without a doubt, it has become the most important aspect of the economy for businessmen who are looking to grow and generate revenue.

However, this growth has come with the opportunity for scammers as well. E-commerce fraud today has become a major problem all over the world.

According to Juniper Research analysis, the value of losses due to e-commerce fraud has climbed from $17.5 billion in 2020 to over $20 billion in 2021, resulting in an 18% increase in a single year. The cybercriminals and fraudsters are targeting customers as well as merchants that are inexperienced and unprepared for the market’s ongoing fraud concerns.

Therefore, consumers and merchants both must learn about the frauds and the protection methods, in order to avoid big losses. 

What do you mean by E-commerce Fraud?

E-commerce fraud is known by many names, online fraud, payment fraud or you can also call purchase fraud. It is when a criminal or fraudster uses stolen payment information to conduct online transactions without the account owner’s knowledge on an E-commerce platform. It is accomplished through the use of fraudulent identity, stolen credit cards, false personal card information, among other methods.

Fraud protection is a top priority for any organization as it affects the bottom line of the merchant and produces enormous negative effects.

Negative Influence of Fraudulent Activity on your Business

When it comes to e-commerce fraud, your company suffers more than just revenue losses. You must also deal with the loss of client trust as well as the harm to your company’s reputation.

Each of these negative consequences – financial losses, a tarnished reputation, and a lack of trust – threatens your company’s long-term viability. The threat of e-commerce fraud is serious, regardless of the size of your business.

You need to understand the reasons for the prevailing e-commerce fraud in order to detect and prevent your business from it.

Reasons Behind Increasing E-commerce Frauds

Needless to say, there are a plethora of reasons for fraud to occur in e-commerce stores. Some of them are:

Improved Technology: Fraudsters are growing more intelligent, devising new methods, and becoming more sophisticated with each passing year as everything becomes digital and AI is used. It is simple to steal data and buy information with today’s modern technologies.

Increased Distance: The scammers aren’t required to enter a store, speak to anyone, or risk being caught on store cameras. All they need is a computer and access to the Internet. With the use of online aliases and less physical presence, it has become difficult to identify and apprehend the perpetrator.

Great Ease: Before the Internet, thieves had to physically take credit cards and use them to make transactions. Breaking into people’s houses and automobiles, as well as robbing individuals on the street for credit cards, was a dangerous profession in and of itself. However, things are a lot simpler now. The dark web, in particular, has made it incredibly easy for them to acquire credit cards.

Large Evasion: In comparison to other crimes, cyber-crimes are time-consuming as well as cost-effective. Moreover, cross-border invasion makes it more difficult for police to obtain evidence and prosecute criminals.

Most Prevalent E-commerce Frauds

Identity Fraud

It’s when an imposter acquires and utilizes another person’s personal and financial information without permission. Consumers are not the only ones who are affected by this scam; the merchant is also affected since customers might request a refund.

Customers who believe their personal and financial information is at risk and cannot be shared on e-commerce websites or webshops are less likely to complete a transaction. A store’s reputation may suffer as a result of this.

This may be accomplished through a variety of techniques, including acquiring and hacking personal information such as passwords and security codes, phishing tactics, and so on.

Chargeback or Friendly Fraud

Chargeback fraud happens when a shopper uses their credit card to make a purchase, receives the goods or services, and then seeks a refund from the credit card company, which is routed through the issuing bank saying it was unapproved or fraudulent. In this sort of fraud, the payment processor demands that the store repay the transaction amount to the issuing bank. The online merchant is accountable for refunding the transaction when a bank requests a chargeback.

Affiliate Fraud

Affiliate fraud is any illicit conduct aimed at generating commissions for affiliates. Online businesses pay affiliates a commission for sales referred to by affiliates in affiliate marketing. Affiliates are provided with a unique, trackable web link that directs customers to the merchant’s store pages. When a consumer makes a purchase after clicking on one of these links, the retailer pays the affiliate a commission for the recommendation.

In affiliate fraud, criminals use the system to defraud online merchants by creating phony activity in order to collect commissions or boost commission amounts.

Phishing or Account Takeover Fraud

When a person uses stolen credentials to gain access to a customer’s account, this is known as account takeover fraud. A fraudster can drain monetary cash or loyalty points, steal client data, or purchase products or services once they gain access. Account takeover fraud hurts brand reputations and can permanently destroy the confidence of excellent consumers, in addition to lost money.

The dark web’s desire for stolen email addresses, passwords, and other confidential personal information has led to an increase in this sort of non-financial credentials fraud. When a fraudster figures out the proper username and password combination, they can get access to and exploit legitimate consumer accounts.

Triangulation Fraud

When unscrupulous actors create false internet storefronts to offer things at lower costs, this is known as triangulation fraud. The goal of the phoney store is to steal credit card information. After obtaining a consumer’s credit card information, the fraudster sends the legal transaction to the legitimate retailer. Chargebacks occur when the legitimate merchant charges the customer a second time. If the customer is unaware that their credit card information has been stolen, the fraudster may keep the stolen data and use it to make transactions elsewhere.

Interception Fraud

Fraudsters attempt to intercept a customer’s order and get products for resale through interception fraud. The fraudster will accomplish this by contacting a vendor’s customer care partner and requesting that the order’s delivery address be changed to their own. The fraudster may even contact the shipping company directly and request that a package be rerouted to a different address so that they can intercept it. To get purchase and delivery data, intercept fraud needs to take over a customer’s account.

Ways to Detect E-commerce Frauds

Businesses must stay informed about current fraud trends and work with their partners and service providers to establish plans that address specific dangers as they emerge. Neglecting key procedures might increase your company’s risk of e-commerce fraud. Criminals are more likely to attack businesses and their consumers if this vital monitoring is not in place.

In order to combat fraud, you must utilize a high-quality fraud detection and management system and integrate innovative methods into your organization such as:

·         Check the source of your website traffic

·         Check customers who are shopping for a large number of items, that too for the first time

·         Check customers who opt for quick shipment, that too in a strange area

·         Be vigilant for several cards used from a single IP address

·         Track sales and chargebacks

·         Track customer fraud complaints

·         Watch for changes in current customers’ buying behaviors

·         Watch the discrepancy between the mailing address and the IP address

Preventive Measures Against E-commerce Frauds

If the merchandise is sold to a fraudster, there is only a slim chance that the merchant would receive it back. It results in a drop in income as well as the loss of a customer.

As a result, e-commerce companies must take precautions to safeguard themselves and their consumers against fraud.

Here are some strategies for preventing fraud in the E-commerce industry.

Monitor your Site

Keep a regular eye on the functioning of your website to notice any suspicious activity like inconsistencies in billing and shipping information, as well as your customers’ actual whereabouts. Use technologies that track client IP addresses and alert you to any addresses from nations that are known to be a fraudster’s hotspot.

Custom Address Verification Service (AVS)

You can use the Address Verification Services that are often offered by credit card processors and issuing banks to detect suspect credit card transactions in real-time and prevent credit card fraud. The Address Verification Service compares the card user’s (customer’s) billing address to the cardholder’s billing address on file with the issuing bank. This check is performed as part of the merchant’s request to the payment processor for credit card transaction authorization. When the addresses don’t match, the system either rejects the transaction for further inquiry.

Include Card Verification Value (CVV) for Purchases

Make CVV compulsive for every transaction to confirm that consumers have the physical credit card in their hands. This keeps you protected and helps to avoid fraud.

Prefer Hypertext Transfer Protocol Secure (HTTPS)

To safeguard sensitive information including client names, addresses, and credit card details, use HTTPS which is a secure version that encrypts the data. Using HTTPS protects your online store’s transactions from being broadcast in a way that hackers, thieves, and fraudsters can readily see. By purchasing an SSL certificate, you can easily use HTTPS.

Reduce the Extent of Purchases

Set restrictions for the number of purchases and total cash value you’ll accept from one account in a single day based on your order and revenue patterns. This reduces your exposure to a bare minimum in the event of fraud.

Use Anti-fraud solutions

Depending on your goals and budget, there is a range of software solutions available to identify and prevent online fraud. Furthermore, the tools you choose may differ significantly in terms of the amount of effort required for installation and continuing administration. Some people prefer a more hands-on approach, while others prefer to leave it to the professionals.

Check IP Address and Credit Card Address

Every order placed on your website originates from a distinct public IP address. The location or area of the world where the purchaser is making the transaction can typically be deduced from the IP address. If the city or area does not match the address on the credit card being used, then you need to be alert.

Learn more about the prevention of your E-commerce store from security breaches!

When cyberthieves discover new weaknesses to exploit, it will be critical to adopt these strategies into your e-commerce platform to safeguard it from forthcoming expensive attacks.  

What can we do to help you?

Unsure how to protect the information of your customers? We’ve got you covered since the security of your data and systems is a top priority for us. With the exclusive features of our leading storefront platform Kartify, we will address all of your security issues. Our handcrafted product delivers an exceptional e-commerce experience to those who are new to the digital world and also the ones unaware of the increasing technological innovations.

Our expertise will instantly assist you with security audits using VA/PT on a regular basis; ISO / IEC 27001:2013 (WIP) and allow you access control for development and deployment, Cloud Armor, as well as frequent backups and version control.

So, what are you waiting for? Now is the time to request your free DEMO.

FAQ section is considered as customer support by many people but if used correctly it can prove to be a pro to your website. It serves several functions, such as  

•         Quick information about the business, products and services
•         Publicly answer questions to delight people and build customer trust
•         Enhance brand values and elevate purchasing ease
•         Actively support customer queries and prevent complaints
•         Helps make decisions and improve shopping experience

As people today like to resolve most of the queries themselves, a relevant FAQ page can convince your customers and sales.

Many Business owners considering FAQ Page irrelevant tend to lose customers and sales.

What does FAQ imply?

FAQ are the frequently asked questions that are common to customers. They are the quick response displayed on the web page that allows visitors to communicate and decide whether they want to proceed with your services or not. It is the best way to save time and effort which pleases customers while they troubleshoot problems. FAQ serves as the first page of a contract for service before customers reach the owner directly.

Most businesses confuse the FAQ page with the About Us page and lose billions due to lack of interaction.

How to create an engaging FAQ page?

Whether old or new, the customer’s anxiety of dealing online is catered well if your page is specific and crafted well with right questions and answers. Here are a few tips to create an engaging FAQ page.

Make your FAQs easily navigable

Don’t hide or complicate your page. People know what FAQ means and are looking to get a quick answer rather than making a call and wasting time. So instead of writing a whole lot of messages just write “How can we help?” or “More Info” and place it in the navigation menu or the website footer to reassure your prospect. Consider it as an opportunity to educate and engage your customers.

Enlist common questions

Think about your business and the demographic that you target. Enlist the question from very basic to advance without skipping any, as sometimes the simplest ones are hard to answer. Learn your companies inside out and the prospect of your potential customers to ease their understanding. Waffling to avoid the answers, shying away or redirecting the customers to another page isn’t going to help.

Divide your page in small sections or categories if they fall under the same group as it will make it easy for the customers to direct themselves.

Jack & Jones has divided the page in various sections to help the customers reach their concerned query. 

Customers unable to find the answers on your website might turn to social media which can lead to misconception and speculations.

Don’t expect lawyers to write your FAQ

FAQ should be as conversational as possible. It should not be dull, boring or controversial but direct, real time and casual to lead the prospect to purchase the product. There may be some questions that you wont like to answer but how you answer is again a key note. Think from the side of the customer and spin the bottle in a way that you don’t lose them instead give more of what they need.  

Avoid jargon and include ‘Call To Action’

Simple and definitive words are more convincing, so instead of writing wishy washy use Yes/No. Further get a clue from the question about what your customers want to do and provide them the link to do so. Don’t leave your customers to a dead end and let hunt services themselves instead be the part of their decision and assist them.  

For example,

Q. Do you charge for a demo?

A. No, the request for a demo (link) is absolutely free.

Enhance with some creativity

It is true when it is said, “Action speaks louder than words”. Sometimes it is hard to explain in words what you want to tell or explain to others. You can go creative in such a case. You can include either audio or video or some images to direct your customers. A few funny yet professional questions also engage customers to business.

Many companies like Bath and Body Works, incorporate video to make it easy for customers to follow. 

Report shows that 80% of customers stop business with companies having poor customer support service.  

(Source: HubSpot Research)

Templates for FAQ

There is no universal template when it comes to FAQ but there is a common pattern of writing this page in the form of Question and Answers. 

Varstrado, follow a simple pattern of answers below every question that users can easily explore to clear their doubt.

Many websites present their answers in the form of a dropdown as well. By clicking the question or any particular sign (such as arrow or plus) one can get the answers. 

Vero Moda has aesthetically used a clean design to present its FAQ to provide a seamless user experience. 

Typing the question on the search bar above is yet another way to get the answer in FAQ on some websites. 

Some sites also link a new page with each question in order to enhance the SEO along with query solutions.

Create your Own FAQ Page

Here are some common ecommerce questions that you can make you start with your FAQ page today –  

• When will my product get delivered?
• What to do if I have not received a damaged product?
• What to do if I have not received my order?
• How to replace the order I have made?
• What is your return policy?
• What are the shipment options?
• Why do I have to pay extra tax?
• How can I reach you if my queries are not cleared?
• How safe are my details with you?

Now you need to dig more about the featured products, brand promises,account management and usage of the products. 

Don’t overlook your FAQ page, instead keep it updated with new queries that are frequent.  

Get Started with ANS Commerce

To kick start an ecommerce business you need to nurture it with all the resources possible with you being focused on the core production and services. At ANS Commerce we help businesses with Kartify, an integration-ready proprietary tech platform that allows you to start your own store without undergoing any hassle. From platform leverage to cross-sector expansion, we provide everything to extend your standards. So, request your DEMO today!  

Takeaway

The FAQ page can add a lot of value to your website if used strategically. It can not only reduce the burden of your customer support but also enhance the purchase anxiety of the customer. So incorporate it as a part of your website rather than the aftermath. 

For modern shopaholics, nothing is as exciting as the idea of buying now and paying later. Fortunately for them, this fantasy is now a reality. 

Buy now, pay later (BNPL) has gained huge popularity over the last few years. 

With the advent of the Covid-19 pandemic, the ensuing lockdown, and the financial ramifications it has had for consumers and businesses alike, BNPL is likely to become an important part of the e-commerce domain. It enables customers to buy a product or service without worrying about the purchase price.

With the ability to encourage impulse buying and drive additional sales, it’s no surprise that BNPL is the next big payment trend in the online retail world.

What is Buy Now, Pay Later?

The idea behind buy now, pay later is quite simple. Shoppers buy something online and, instead of paying the total amount upfront, pay in installments over some time. BNPL also makes it possible for businesses to move goods quickly out of inventory. 

Companies can offer their financing, or go through a third party such as Simpl or LazyPay. 

How does Buy Now, Pay Later work?

At checkout, shoppers have the option to receive their product right away and pay the amount in full either after a set period or in smaller installments over time. They usually have to make 3-4 equally spaced payments, also, there are no extra fees or interest charges, provided they pay on time. 

The businesses have to pay the service provider a certain percentage of the amount as commission plus a fixed fee for every transaction.

The majority of the BNPL service providers do a soft credit check to avoid giving money to people who have shown general disregard for repayment obligations, but this isn’t universal. 

Social e-commerce drives further adoption of Buy Now, Pay Later

A change driver that is closely tied to the BNPL boom, is the rise of social e-commerce. It enables users to shop directly from social media apps by bringing social media and e-commerce together. Buy Now, Pay Later assists in fast-tracking the purchase decision by providing shoppers the option to pay later, leading to more impulse buying. 

Whether or not they are active in the social e-commerce domain, brands with an online store need to optimize their checkout experience to remain competitive. 

Now that you know what Buy Now, Pay Later is, let’s see how implementing it can benefit your e-commerce business.

Why should businesses offer Buy Now, Pay Later? 

Convert more visitors

For businesses, there’s nothing more frustrating than seeing visitors spending a lot of time on their website, browsing products, adding them to the cart, only to abandon them. 

While there are multiple reasons for a customer to abandon their cart, affordability always comes on top. 

BNPL enables customers to purchase goods even during a tight financial situation. Suppose, you are selling a certain product for two thousand rupees. If you let the buyer pay in two or more installments, you will sell twice as many products. 

Looking for a logistics partner for your FMCG goods? Read on to find out how we safely store and ship perishable goods. 

Increase your average order value

The Average Order Value (AOV) is the amount a customer pays when they make a purchase. Many e-commerce businesses have witnessed more than a 100% increase in AOV after adopting the BNPL payment system on their website. 

Smaller, spread-out payments increase the customers’ purchasing power, driving the sales for businesses. People prefer BNPL to avoid the exorbitant interest rates of credit cards. 

Buy Now, Pay Later system is also quite helpful for brands selling high-value goods like jewellery and electronics. It enables consumers to purchase these expensive items without worrying about the payment. Therefore, making it easier for brands to drive order conversion. 

Offer better customer experience

A hassle-free custom experience builds loyalty and encourages repeat purchases. 

For a customer, more ways to shop, pay, and products to choose from, are all positive factors. Offering customers the option to shop and pay the way they want leads to an increase in loyalty and sales. 

Which payment method you choose to provide on your checkout page is up to you. Although millennials are more likely to prefer mobile wallet/UPI, the more choices offered, the better. 

BNPL is just one more option the customers would like to see on the checkout page. Adopting this growing trend can provide them with a seamless shopping experience leading to repeat business. 

Data safety is of utmost importance when it comes to online shopping. Read this article to learn how you can avoid a data breach. 

Drawbacks of adopting Buy Now, Pay Later?

There are always certain drawbacks associated with every financing option, BNPL is no exception. 

• BNPL third-party service providers usually charge 2-6% of the purchase amount, which is higher than the traditional payment methods. However, for brands, it can still be profitable because BNPL assists in driving more conversions 

• One of the biggest cons of offering the Buy Now, Pay Later option is that it invites several administrative problems. Also, there’s a risk of loss of revenue if the customer doesn’t pay the amount, or stops paying after a few installments. However, BNPL service provided by third parties is a great way to avoid such situations. Once a customer buys through the third-party gateway, the seller is paid in full within a few business days. The payment partner services the loan and takes on the risk, from chargebacks to fraud

• BNPL also involves integration challenges, incorporating it requires some serious workaround on your checkout page. It needs special tools and technology, which adds up to your business expense thus lowering your profit margin. To avoid this, brands should choose a feature-rich platform that is integration-ready

How can ANS Commerce assist you?

Our in-house, fully customizable, integration-ready proprietary brand store platform, Kartify comes with a payment gateway that is safe and secure. We do not store user financial details and conduct regular security audits for more safety.

BNPL is the latest wave within the fintech industry to further disrupt the traditional banking and business landscape. With the long-term financial impact of the Covid-19 pandemic, especially among the younger generation, BNPL services will likely witness accelerated adoption in the future. Kartify offers an option to enable BNPL for our partner brands. We advise you to jump on this trend with our assistance so that you can drive more sales, safely. Request your free DEMO now!