News • 05.06.2020

COVID-19: surge in first-time online shoppers

Risk of outdated fraud controls

A keyboard with a shopping cart on one key
Source: Bildagentur PantherMedia / Andriy Popov

The provider of fraud protection solutions ClearSale analyzed April 2020 e-commerce customer data from clients in the U.S., Canada, Australia, Mexico and Argentina – all countries where some form of lockdowns were in effect. The analysis showed that across all five countries, the average number of brand-new online shoppers rose by 12 percent between March and April.

“To get this data, we used known email addresses as a proxy for existing customers,” said Rafael Lourenco, Executive Vice President and Partner at ClearSale. “Email addresses for shoppers that weren’t already in our fraud-prevention database or one of our partners’ databases represent new shoppers in our analysis.” Using this approach, the portion of April’s total number of shoppers who were already known to buy online dropped in every country in the study. “The percentage decrease in known customers represents new customers entering that market,” Lourenco said. “This data leads us to think that more people who’ve never shopped online before are turning to e-commerce as their only or preferred option during quarantine.”

Risk to lose new shoppers again

Acquiring new customers is an ongoing goal for merchants. However, Lourenco cautions that unless sellers and fraud-prevention professionals adjust their rules and algorithms, they risk turning away these new shoppers by mistake. “In normal times, fraud filters would flag a never-before-seen email address as possible fraud. That’s because fraudsters often create new email addresses to use when they shop with stolen cards. But now, consumers are behaving in new ways as they cope with the crisis. So, merchants need to assess orders with unknown email contacts differently, to avoid losing revenue and turning away good customers who might not return.”

An Aite Group report commissioned by ClearSale found that false positives – rejecting good orders by mistake – could cost merchants as much as $443 billion by 2021, far more than the total lost to fraud. To avoid falsely declining new customers, Lourenco recommends turning off automatic rejection of flagged orders and reviewing them manually before decisioning. 

Source: ClearSale

related articles:

popular articles:

Thumbnail-Photo: Digital tool helps MENY in the fight against food waste...
13.02.2020   #sustainability #app

Digital tool helps MENY in the fight against food waste

Printing discount labels directly from the app

After a convincing test, Dagrofa rolls out the food waste app ‘Whywaste’ in all the Danish MENY stores. At MENY in Solrød, the store has already managed to achieve a significant reduction in food waste. In addition to the app, the ...

Thumbnail-Photo: Consumer survey: social distancing is changing shopping habits...
10.04.2020   #brick and mortar retail #payment systems

Consumer survey: social distancing is changing shopping habits

Touchless or self-checkout options preferred for instore shopping during COVID-19 pandemic

Nearly two-thirds of consumers are changing their grocery shopping habits in response to the worldwide COVID-19 pandemic, according to a recent consumer survey from Shekel, pioneers in advanced weighing technologies. And 87 percent of shoppers say ...

Thumbnail-Photo: Solid Lines 2020, a product range …
01.02.2020   #refrigeration cabinets #Trade fair special EuroShop 2020

Solid Lines 2020, a product range …

… designed with the idea of generating unforgettable shopping experiences

New architectural and design concepts are appearing in the conceptualization of current supermarkets, especially aimed at improving the customers' shopping experience by incorporating solutions that generate value, allowing to optimize energy ...

Thumbnail-Photo: Light up the future with Posiflex at EuroShop 2020...
11.02.2020   #kiosk terminals #Trade fair special EuroShop 2020

Light up the future with Posiflex at EuroShop 2020

Serviced IoT solutions: personalized, flexible and connected

The Posiflex Group, a synergy of world-leading POS, kiosk, and industrial computing technologies — will bring its Serviced IoT solutions to EuroShop 2020, the leading Europe trade fair for the retail industry, from February 16th – 20th ...

Thumbnail-Photo: The cash register capable of everything
18.02.2020   #customer satisfaction #epos systems

The cash register capable of everything

Flexible use from manned checkout to self-checkout point

Customers walking through the store with their own cash register on hand? This versatility of shop technology and shop fittings corresponds to the change in brick and mortar retail. MAGO wants to help retailers to meet this challenge with ...

Thumbnail-Photo: Effective and Independent
12.02.2020   #epos systems #cashpoints

Effective and Independent

Present and future of self-checkout

Better use of personnel, lowering overhead costs while still providing customers with a smooth and seamless shopping experience – that’s what every retailer strives to accomplish. For Thomas Dibbern, CEO of ALMEX GmbH, there is an ...

Thumbnail-Photo: Wirecard and Klarna launch joint payment solution for merchants...
27.03.2020   #payment systems #digitization

Wirecard and Klarna launch joint payment solution for merchants

Wirecard embeds all three Klarna payment methods into merchants' checkout

Wirecard, the global innovation leader for digital financial technology, and Klarna, a leading global payments and shopping provider, announced today the launch of a new enhanced joint payment solution. All three Klarna shopping methods, Pay Now, ...

Thumbnail-Photo: Online payment fraud losses to exceed $200 billion...
02.03.2020   #online trading #mobile payment

Online payment fraud losses to exceed $200 billion

Ongoing high level of data breaches and fraud innovation driving losses

A new study from Juniper Research has found that businesses in e-commerce, airline ticketing, money transfer and banking services, will cumulatively lose over 200 billion dollars to online payment fraud between 2020 and 2024, driven by the increased ...

Thumbnail-Photo: Compact for security
17.01.2020   #security #shopfitting

Compact for security

A new security antenna system specifically designed for convenience stores

Retail security systems to prevent theft are a big concern for retailers. Large supermarkets and clothing stores install EAS antennas at the entrance and/or exit areas. Installing this type of feature proves more challenging for stores with a ...

Thumbnail-Photo: 3D product configuration: individualization online and in real time...
24.03.2020   #online trading #online marketing

3D product configuration: individualization online and in real time

Video interview with Yusuf Sahin, sales consultant at Derwid

The more attractive the presentation of a product, the more likely customers are to decide to buy online.One way of doing this is 3D product configuration, in which all the data and options of a product flow into the background. This allows the user ...

Supplier

SALTO Systems GmbH
SALTO Systems GmbH
Schwelmer Str. 245
42389 Wuppertal
Nagarro Allgeier ES GmbH
Nagarro Allgeier ES GmbH
Westerbachstr. 32
61476 Kronberg im Taunus
HappyOrNot
HappyOrNot
Innere Kanalstraße 15
50823 Köln
Burkhardt Leitner Modular Spaces GmbH
Olgastrasse 138
70180 Stuttgart
Adasys GmbH – a Poindus Company
Adasys GmbH – a Poindus Company
Max-Planck-Straße 10
70806 Kornwestheim
APG Cash Drawer
APG Cash Drawer
4 The Drove
BN9 0LA Newhaven
SES-imagotag Deutschland GmbH
SES-imagotag Deutschland GmbH
Bundesstraße 16
77955 Ettenheim
POSIFLEX GmbH
POSIFLEX GmbH
Flinger Broich 203
40235 Düsseldorf
Saint Gobain Sovis
Avenue de la Republique
2407 Chateau Thierry Cedex