Retail 2020: How Retailers Can Rekindle Customer Love and Avoid Consumer Abuse
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Retail 2020: How Retailers Can Rekindle Customer Love and Avoid Consumer Abuse
Being a consumer in the new decade means never
having to buy a mattress again.
Never mind that returns — both legitimate and
Just as retailers have seized upon the digital age to fraudulent — constitute one of ecommerce’s most
shake up the way they sell to consumers, consumers, fierce headwinds. U.S. retailers took a $309 billion
more savvy than ever before, are roaring into the hit because of returns in 2019, $41 billion of that
2020s as self-assured advocates for their own coming from online sales, according to Appriss
shopping experiences. Retail, an AI and analytics provider. Roughly 8% of
those returns are fraudulent, the National Retail
Take Karan Bir, a New York technical architect, Federation says.
who remorselessly told The Wall Street Journal
that he’d been sleeping on free mattressess for Given that returns and consumer abuse are an
months — 15 months in fact, as he serially returned increasing burden, particularly for online retailers,
five mattresses within their free-tryout periods, all Signifyd set out to gauge consumers’ attitudes
while sleeping like a baby. toward the retailers they shop and their sense
of fair play when it comes to experiences
No anonymous sources here. The Journal spoke to that don’t go quite right.
a number of free-mattress freeloaders who provided
the Journal and its 2.8 million readers with their We surveyed 2,010 online shoppers during the
names, hometowns and employers. Kind of the first quarter of the year, asking them about their
definition of shameless. expectations from retailers, their reaction to data
breaches and fraud, and their approach to dealing
Indeed, these modern consumers are not ashamed with retailers when things go wrong. The result is
or sheepish. They return with abandon. They Signifyd’s 2020 Consumer Sentiment Survey.
approach retailers with the attitude of, “Hey, you
make the rules. We just figure out how to bend them.” In particular we dug into some of the most fraught
interactions between retailers and their customers
In fact, nearly 84% of consumers have no sympathy — product returns and consumer claims that
for retailers who feel the competitive need to accept something went awry with an online order.
returns with no questions asked, according to a
Survata survey commissioned by Signifyd.
3
Ethical fading and the cost to the bottom line Have you ever had a retail charge that you did not make on
either your credit card or retailer account (someone you did
not know fraudulently made a purchase)?
Fraudulent returns of online purchases alone outpace payment fraud on the list
cost retailers $2 billion in 2019, according of retailers’ challenges.
1600
to Appriss, most of that related to online
purchases returned in-store. Given the high financial stakes and the
increasing threat that abuse and returns 1400
“Return fraud is up 35% over pose to retailers, we naturally set out to
last year, at the same time that find out just what’s going on. To do that,
retailers are struggling to find a we turned to that timeless retail adage — 1200
balance between making returns as listen to the customer.
frictionless as possible and keeping
R E S PO N DE NTS
costs in check,” Appriss President And what we heard in consumers’ responses 1000 1 1 08
5 5 .1%
Steve Prebble said in a news release to our survey provides a telling story:
announcing the findings. No small portion of them are feeling 902
less certain about their relationships 800 44.9%
Online retailers also suffer losses when with retailers.
unscrupulous customers claim orders
600
that they received never arrived or that Well over half of the respondents assume
perfectly good items did not meet their their personal data has been stolen in a
expectations. Such false claims, or friendly recent data breach and a like number have
400
fraud chargebacks, cost retailers more seen a fraudulent charge appear on their
than $15 billion in losses, based on credit card accounts.
Signifyd’s research. 200
A significant portion of those, by the way, say
While already staggering, these sorts those fraudulent charges leave them with
of customer abuse issues, along with negative feelings about the retailer involved, 0
fraudulent returns, might one day soon no matter who is to blame. YES NO
A review of the survey finding shows that most
consumers in 2020 still seek to do the right thing
— to return items for legitimate reasons, to complain
and seek restitution only when packages actually
don’t arrive or when what does arrive is damaged
or not as described online.
And while that conclusion might be less than
startling — and somewhat reassuring — according
to our poll, a relatively small, but significant number
of consumers do seek to game the system.
What do we mean by significant?
5
Do you think your personal information (data) could have been
included in any of the recent consumer data breaches?
1600
Have you ever filed a claim with your credit card company saying
1400
an item was not delivered, even though it actually was?
1200
3500
R E S PO N D E N TS
1000 3000
105 7
RESPON DEN TS
52.6%
953
4 7. 4 % 2500
800
2000
600
1847
1500 91.9%
400
1000
200
500
163
0 8.1%
NO 0
YES
YES NO
Consider that 8.1 % of respondents said they had filed a claim with their credit card companies
saying an ecommerce order never arrived when in fact it had. The relatively small percentage
is heartening, except when you stop to consider that unless a retailer is successfully able to Granted, “percentage of customers” survey respondents admitted to keeping
defend itself against such false claims, that money comes out of the retailer’s pocket. doesn’t equal “percentage of revenue,” a product they were not satisfied with,
but you could hardly blame a retailer for but making up for their disappointment
being much less heartened at the notion by asking their credit card companies to
that 8% of its customers are engaging in reverse the original charge for the product.
digital shoplifting — a practice that directly Again, that is revenue that a retailer
contributes to revenue erosion in an era of thought it had realized, but instead had
tight margins and increasing competition. to surrender — most likely meaning the
retailer was out both the product and
And that’s just for starters. Another 6% of the sale.
7
When you are not satisfied with an item you Drawing a straight line from data breaches and
fraudulent charges to bad behavior on the part
received after ordering online, what do you do? of a small percentage of consumers would be RETAIL TIP:
impossible to support and potentially unfair Provide transparent and real-time
to the companies that have been victims of communication. Reassure customers
3500
fraudsters and hackers. that you have safeguards in place to
protect their data and to protect them
But it is clear that data breaches have become from fraudulent orders.
RE S P ONDE NTS
2500
a way of life and that consumers are well aware
of the potential peril they face because of them.
1500 1889
9 4 . 0%
500 12 1
Data breaches and fraud
6. 0 %
Return the item to the retailer for a refund Keep the item and ask my credit
card company to void the charge
have moved to top-of-mind
to my account
for consumers
That more than 14% of consumers admit to trust. People start to rationalize all kinds It seems that hardly a day goes by without the report
brazenly taking advantage of the retailers they of behavior.” of yet another major data breach. Thousands, hundreds
patronize should be cause for serious concern. of thousands, millions and hundreds of millions of
What makes it all the more concerning is a Skeet, who is the director of leadership ethics identities are stolen, seemingly on a weekly basis.
question every retailer needs to ask: If 14% at SCU’s Markkula Center for Applied Ethics,
of my customers admit they are ripping me points to the Edelman Trust Barometer, as Sometimes the theft goes unreported for months.
off, how many are doing so without openly ethicists do. The annual global survey shows It’s not uncommon for consumers to never be entirely
talking about it? that, in general, trust in institutions, which sure whether or not their information was among
includes corporations, is on the decline. That the vast amounts of data that thieves made off with.
The answer is impossible to know, but “at lack of trust, a sense that the relationship
least some” is a good guess. The question is unbalanced, makes it easier for humans Remember Equifax and the loss of 148 million records?
is why — why do they do it, and why do to explain away bad behavior that harms What about Marriott coughing up the records of 383
they openly admit to doing it? institutions. million customers? And the list goes on: Facebook,
Instagram, First American Financial Corp, Burger
Ann Skeet, an ethicist at Santa Clara University “All of us are susceptible to these King, Capital One, Words with Friends. Who can
in California, says behavior toward institutions, things,” Skeet says. “What you’re blame consumers for forgetting the particulars,
including retail businesses, is often governed describing is really an example of but remembering that chances are their identities
by the level of trust between the participants ethical fading — they rationalize it are floating around out there?
in a transaction or interaction. somehow.”
“I think what you’re describing,” she said And so at least part of the reason some
regarding some of Signifyd’s findings, shoppers take advantage of some retailers is
“is sort of what happens when we erode that they don’t see their actions as being wrong.
9
The problem of negative perception because of fraudulent
charges is not equal for all retail verticals. Consumers
tend to remember bad experiences and they remember
Such thefts supply the corners of the Dark Or they might just create a whole where they were shopping when the bad things happened
Web, where complete consumer identities new person, using a combination to good consumers. Online retailers selling apparel,
are bought and sold in bulk on the open of credentials lifted in the cyber heist. fashion and footwear and merchants selling electronics
market. The sites selling consumers’ and computers seem to face the biggest challenge with
personally identifiable information — credit One thing we know: Consumers are either fraudulent orders.
card numbers, email addresses, drivers more aware of these schemes or are being
licenses, social security numbers, postal increasingly victimized by them. Maybe both. Nearly 60% of respondents experienced a fraudulent
addresses, birth dates and on and on — charge in at least one of the two verticals. No other
come complete with Yelp-like user reviews. As we said earlier, in our latest survey, 55.1% specific vertical was even close.
of consumers said they had seen fraudulent
Criminal rings assemble the information charges appear on their credit accounts.
and go to work. They might use credit card That was up from 43.2% who said in our
information and credentials to buy items that 2019 survey that they had encountered such Did the fraudulent charge negatively affect your opinion
will be charged to the identity theft victim’s charges on their accounts.
account. They might take over an existing
of the retailer where the purchase was made?
account, changing the billing and shipping More than two-fifths, or 42.5% said they were
addresses and buying themselves a little left with a negative impression of the retailer 1000
more time before the fraud is discovered. with whom the fraudulent charge was made.
900
800
700
R E S PO N D E N TS
600 637
5 7. 5 %
500
4 71
400 42.5%
300
200
100
0
YES NO
11
If you have had a retail charge that you didn’t make, what type of
retailer/product was involved?
Apparel/Fashion/Footware 2 9 9 2 7. 0 %
Electronics/Computers 32 8 2 9. 6%
Jewelry/Watches 57 5 .1 %
Health, Beauty & Cosmetics 111 1 0. 0 %
Sporting Goods/Recreational
Equipment
10 9 9. 8 % Return policies can win
Housewares, Garden, Furnishings/
16 3 1 4 .7 %
or lose customers
Home Improvement
Children’s Goods/Toys 7 0 6 . 3% In conducting the 2020 Consumer Sentiment returns whether anything was wrong with the
Survey, we set out to produce more than a simple product or not, nearly 84% said either that they’d
report card, with consumers grading retailers. never thought about the issue or that it was
Other 2 9 9 2 7. 0 %
So, let’s dig into the numbers to see what simply the cost of doing business. Another 9.7%
insights they provide in terms of building better said the situation doesn’t really make sense,
0 50 100 150 200 250 300 350 400
experiences for and relationships with customers. but that’s just the way it is. Only 6.6% said they
R E S PO N DE N TS thought the reality was unfair to retailers and
Obviously the deleterious impact of returns that they expected things to change.
on the retail industry has grabbed merchants’
attention. It turns out they’re not the only ones I never feel guilty about returning
The increase in negative impressions RETAIL TIP:
paying attention. Consumers are also focused a product to a retailer
due to fraudulent charges comes at Examine your consumers’ buying journey. Where
on returns, but in a different way.
the same time that consumers are along the way are you losing sales, crushing
saying they’re willing to put up with less conversions? Have you inadvertently added 1800
2020 shoppers want to be able to return
frustration. Last year, 52.8% said they friction in response to fear of consumer abuse or
products for virtually any reason. Our numbers
would allow a retailer no more than one fraud? Is slow site performance or subpar checkout
show that retailers would be wise to think 1400
bad online experience before shunning frustrating your potential customers? Fix the 149 8
carefully about their return policies and then 7 4 .5 %
the retailer for good. This year, the obvious and test. Then move to the next thing.
R ES P O N D EN TS
express them clearly and in a way that is easy
number shot up to 64.3%. 1000
for consumers to access and understand.
What exactly do the numbers say? Well, first 600
off, retailers cannot expect much sympathy
512
The big takeaway from the survey’s broad conclusions is pretty clear: Providing consumers from consumers when it comes to returns. 25.5%
with an exceptional customer experience is more important than ever — and not just for all Nearly three-quarters, 74.5%, said they 200
the often-repeated benefit to conversion, lifetime loyalty and creating advocates. never feel guilty when returning a product.
When asked whether they feel any sympathy for TRUE FALSE
Customers need to be treated well; they need to feel cared for; they need to feel loved, retailers who feel a competitive need to accept
exactly because they need to trust the companies they are doing business with.
13
Would you stop buying from a brand, based on having had a poor
That said, nearly three-fifths of consumers, 57.7%, said they carefully check return policies
return experience with them?
before they buy. Another 33.4% said they just assume they can return an item for any reason.
2200
When shopping online
1800
I always carefully check
116 0 57.7 % 15 08
the retailer’s return policy 1400
R E SPONDE NTS
7 5. 0%
I assume I’m free to return a 1000
671 33.4%
product for any reason
600
I don’t care about the
17 9 8 . 9%
retailers return policy
5 02
200 25. 0%
200 600 1000 1400 1800
0
R E S PO N DE N TS
YES NO
For three-quarter of respondents, a bad return experience is a relationship killer: 75% said
How much time do you spend researching and reviewing a poor return experience was reason enough for them to stop shopping with a retailer.
an online retailer’s return policy?
None 316 1 5.7 %
Under a minute 6 35 3 1 . 6%
One to five minutes 836 4 1 . 6%
More than five minutes 2 2 3 1 1 .1 %
100 300 500 700 900
R E S PO N D E N TS
More than 41% spend one to five minutes reading the return policy before they buy and 11.1%
spend more than five minutes poring over return rules and requirements.
15
Would you buy more from a brand, based on having had a good Returns have been a growing concern for retailers in the
ecommerce era. Buying online generally means consumers
return experience with them? cannot see and feel a product they are buying. They turn to
online reviews and rich visual experiences online to decide
3000 what they want and whether they want anything at all.
And they sometimes turn to ordering several variations of a
2500
particular product — different sizes, different colors, different
models — to see which one they like the best. The rest? Back
to the retailer they go to either be restocked, refurbished, sold
2000
RE S P ONDE NTS
to a reseller or sent to the landfill, where in the U.S. five billion
pounds of returned goods end up each year.
1500 166 1
82 . 6 %
The similar-item ordering, called “wardrobing” or “bracketing,”
is especially common in apparel and it costs retailers millions.
1000
Twelve percent of those in Signifyd’s survey said they had
34 9 made purchases with the express purpose of returning an
500 1 7. 4 % item. The reasons included ordering multiple versions of
a product or apparel item, so the customer could decide
on a favorite, and buying something to use or wear once,
0 for a specific purpose, and then returning it.
YES NO
But there is opportunity in returns for retailers. Of those surveyed, 82.6% said they’d be
likely to buy more from a retailer who had offered them a good return experience.
What was the reason for your most
recent return of an item purchased online?
RETAIL TIP:
Be thoughtful about your return I purposely ordered multiple versions of a
product/apparel piece so I could select my 90 5 .2%
policy and present it in a clear favorite or best-fitting from the pool of items
way for your customers. Make
I had one specific purpose/event for
sure it is easy to navigate to. which I wanted the item and returned it 48 2.8%
Include return shipping labels when the purpose/event had passed
with orders. You don’t have to
I had buyer's remorse nearly as
provide free returns, but be soon as I ordered the item
71 4.1%
crystal clear about what your
conditions are. The initial joy of the
31 1.8%
product wore off
The item was the wrong
size, color, material, etc
8 7 8 5 1 . 0%
The item I received was
not what I expected
602 35 .0%
100 400 700 1000
RE S P ONDENTS
17
How often do you return an item purchased online?
Take those serial mattress returners for RETAIL TIP:
instance, who take advantage of policies If your return rates are untenable,
that allow a customer to try out a mattress consider restricting serial returners,
Never 290 14.4% for 100 days. understanding that consumers
are evenly split on whether such
Less that “A consumer can rationalize, ‘I’m not policies are fair. Tread carefully as
810 4 0. 3 %
once a year breaking any rules and I’m doing there is potential public relations
what it says,’” Skeet says. “So it blowback ahead. Consider
Once a year 34 4 1 7.1 % recasts it in their mind as sort of my investigating the reasons customers
consumer rights. But actually they’re are returning orders to see if you
really losing sight of the fundamental can reduce them with a fix.
4 2 4 2 1 .1 %
Twice a year ethical issue and the intent of
the rule, which is to have a good
Once a month 114 5 .7 % relationship with customers and build
a relationship of trust. Instead they’re
taking advantage of it.”
More than
once a month
28 1.4%
So, what to do? Some retailers have modified
their return policies for certain consumers.
100 300 500 700 900
If a shopper becomes a habitual returner,
R E S PO N D E N TS
the retailer bans them from returning items.
Naturally, the practice doesn’t go over so well
with the affected consumer. And when things
don’t go over well, things end up on social
Nearly 20% of respondents returned an item at least once a year, with 5.7% saying they
media.
returned something once a month.
And while some might question the ethical fiber of those who appear to game the return
rules, the fact is that many habitual returners are not violating a retailers’ return policy. In
fact, liberal return policies are among the many innovative characteristics of digitally native
retailers — merchants who are being held up as driving the digital transformation of retail.
Warby Parker, an early example of the genre, encourages customers to order five pairs of
glasses to try out for free. Send them back and order the pair you like best — or not. Away
luggage allows customers to return a suitcase within 100 days, even if they’ve traveled with
it and/or put a sticker on it. And of course, there are the mattress companies.
Skeet, the SCU ethicist, says the combination of liberal return rules themselves and
consumer’s generally negative view toward corporate America is one way an otherwise
upstanding shopper might contort his or her thinking about what is fair in the world of returns.
19For some merchants it might be worth In the end a retailer’s best bet when it comes to
balancing that risk and reward. It turns out managing returns comes down to proactively
consumers are fairly evenly split on whether providing a rich customer experience. Online Returns aren’t the only awkward customer
it’s fair to create separate rules for frequent retailers in particular will want to be sure their
returners, with 49.9% saying they’re fine with it online descriptions and photographs are exchanges
and 50.1% saying it’s unfair. detailed and accurate, so buyers know what
they are getting. Of course tackling returns is only part of Packages get lost in transit. Items
The story is different when it comes to the the equation. As we mentioned earlier, are inadvertently poorly displayed or
idea of adjusting return rules based on the They will want to provide voluminous reviews retailers are also facing consumer abuse described on ecommerce sites. Customer
customer’s value to the retailer. More than 68% that provide the insights of others to the at a level that they haven’t before. And beefs can certainly be legitimate.
of consumers said it’s not fair to have one set shoppers who come after. In some cases, our survey results indicate that a small
of rules for those who spend a lot and another they’ll want to turn to technology that allows but significant percentage of consumers But sometimes customers seek to take
set for those who spend a little. shoppers to get a 360-degree view or virtually feel entitled and don’t hesitate to take advantage and the real trick is to know
try on items. Something as simple as an advantage where they can. when the customer is right and when the
Rather than restrict who can return, some accurate sizing chart or a size-finding feature customer is gaming the system. And it
retailers have moved in the opposite direction, will reduce the potential for disappointment. The results of consumer abuse often show turns out, some do game the system.
accepting almost any return. Costco, for up in non-fraud chargebacks, often called
instance, has a liberal return policy that has friendly fraud. The most common variety Overall, 64.8% of our survey respondents
resulted in customers returning half-eaten of non-fraud chargebacks occurs when said that they had filed a chargeback.
meals and dirty socks, Business Insider says. RETAIL TIP: a customer says an online order never The biggest reason respondents gave
Work proactively to avoid returns. arrived at their address — an item-not- for filing a chargeback was that the item
Brad Smith, who was at Skull Candy in the early Make sure product descriptions received claim (INR). When they make the never arrived — 25.3% said that was their
days and moved on to be COO at Jack Grace, and photos are clear, detailed and complaint to their credit card company, the experience. Another 10% said the item
argues that returns are “the cost of customer accurate. Include sizing guides card issuer takes the charge back — and that arrived did not live up to expectations,
experience.” and consumer reviews. Turn to on behalf of the customer recovers the given the description and presentation on
technology to help with sizing money and fees from the retailer accused the merchant’s site.
He says that retailers need to add the cost of and appearance. Add how-to of failing to deliver the goods.
returns and fraudulent returns into their margin and product-explainer videos. Nearly 18% said they hadn’t made the
calculations. Similarly, a customer might file a claim that purchase they were charged for and 11.6%
the item they did receive was significantly more said someone used their credit card
“You’re going to get robbed,” he said. not as described, also known as a SNAD without their permission.
“Someone is going to do a fraudulent claim.
return or make something up or do And retailers want to make sure their return Members of the 18% were likely fraud
something that will lead you to give policies are simple and clear — and easy to Such disputes are the most fraught for victims. The second group no doubt
away free product. And I would say, find on the site, so consumers know the rules retailers, who can fight the consumer’s included those who had children or other
that’s the cost of doing business.” before they even buy. claim, but by doing so the merchant is relatives who used their card without their
calling its customer a liar. Things do go knowledge.
wrong. Packages are stolen off porches.
21If you have ever filed a chargeback with your credit More than 29% of consumers who filed a chargeback despite receiving their order
said they did so because the order arrived later than promised. Just over 17% said
card company, what reason did you give for wanting
the product wasn’t what they expected and they could not figure out how to return
the charge reversed? it. Another 11.7% said returning the items was too much trouble. Slightly more, 12.9%
said they filed a false claim to to get their money back because, “the company I
purchased from is very successful and wouldn’t miss the amount of my purchase.”
I did not receive the item 5 0 8 2 5. 3 %
The item received was significantly
not as described on the site
2 02 1 0. 0% If you have filed a chargeback claim with your
credit card company, even though the product
I did not make the purchase 3 5 8 1 7. 8 % actually was delivered, why did you do that?
Someone used my credit card to make
234 11.6%
the purchase without my permission
On reflection the product
wasn't something I needed
1 6 9.8%
I've never filed a chargeback 7 0 8 3 5. 2 %
The order arrived,
48 29.4%
but later than promised
The product was not what I expected,
1 9 11.7%
but returning it was too much trouble
100 200 300 400 500 600 700 800
The product was not what I expected and it wasn't
R E S PO N DE N TS 28 17.2%
clear on the retailer's site, how I could return it.
The company I purchased from is very successful
and wouldn't miss the amount of my purchase.
21 12.9 %
And like our serial returners quoted in The Wall Street
Journal, some of those who file false chargeback claims I've never filed a claim even though
31 19.0%
a product actually was delivered
have no qualms about saying so. Remember that 8.1% who
said they’d filed an item-not-received chargeback, even 5 15 25 35 45 55 65
though their item actually had been received — by them.
RE S P ONDE NTS
It turns out they have their reasons. Consumers in the
new decade appear to have become more cynical We could all sit back and smugly tsk-tsk the poor behavior of our fellow
and less bashful about seeking self-defined restitution consumers who do things we’d never do. We never would, right? Or we
when they feel they’ve been disappointed by retailers could dig into the numbers and see what retailers might learn from what
in the age of digital transformation. consumers are saying.
23Automation can save the majority of frustrated Another 18.5% said they canceled their orders before they arrived either because they didn’t
get an order confirmation in a timely manner (5.8%) or that the order status was “pending”
customers with no explanation of why (12.7%).
Looking at the responses, you could argue canceled an online purchase after ordering but
that well over half the false chargeback before receiving the package. If you have cancelled an online order after
claims, 58.3%, could be avoided by better placing the order, but before receiving it,
fulfillment procedures and clearer return Digging into the numbers it’s clear that why did you do that?
policies. Delivering the order in the time frame affected retailers must do a better job of
promised (29.4%) and making returns easy to communicating with customers and they need
understand (17.2%) and easy to execute (11.7%) to be clear about delivery times and, well,
I changed my mind
would eliminate the bulk of complaints. deliver on those promises. about wanting the item
508 25 .3%
As for winning over the nearly 13% who believe Just over 17% of respondents who cancelled I found it elsewhere
479 23.8%
retailers make plenty of money and can absorb orders said they got tired of waiting for the at a better price
the hit, that might be a tougher task. package to arrive and another 11.2% said they
decided to buy the item in a store — a sign I found it elsewhere
21 1 10.5 %
with quicker delivery
The reality is that consumers have choices. of impatience. Another 10.5% said they found
If one retailer can’t live up to consumer the product elsewhere with quicker delivery.
I decided to buy it
expectations, a customer will quickly turn to That’s 38.7% of consumers telling ecommerce 226 11.2%
in a physical store
another and give it a chance to do better. More retailers that they’re taking too long to get
than three-fifths of respondents, 61.4%, have orders to customers. I didn't receive confirmation
1 1 6 5 .8%
of the order in a timely fashion
Order status was "pending"
with no explanation of why
255 12.7%
RETAIL TIP:
Retail Tip: Confirm your customers’ I got tired of waiting for 344 17.1%
the order to arrive
orders immediately and lay out
the timelines for delivery. Quickly
Does not apply 77 5 3 8. 6 %
communicate any snags in fulfillment
and tell them what to expect under We know from last year’s sentiment survey that 40.9% of consumers expect an
the new circumstances. order confirmation within minutes
100 and 27.2%
300 more expect 500 notification within hours.900
700
And, of course, a status that is “pending,” which often indicates
RE S P ONDE NTS
a slow manual fraud
review process, is unsettling for an online shopper whether they know the reason
for the status or not.
Another 23.8% said they found the item at a better price, a sign of the pricing
transparency that empowered consumers enjoy.
25It would be unrealistic to think that all the order-cancellers could As for the 23.8% of customers who comparison shop even
be saved. For instance, 25.3% said they simply changed their after they’ve placed an order, retailers should consider
mind. But the numbers point the way to some potential solutions automated pricing tools and low-price guarantees to protect
to high order cancellations. good sales from being cancelled. Simply matching prices,
of course, isn’t the right strategy for every retailer and
Better communication, obviously, would assuage those no one wants to win a race to the bottom when it comes
who want quicker confirmation and those who bristle to price and profit.
at a “pending” notification.
Automated systems driven by artificial intelligence can go a Retail’s future belongs to those
long way toward building better customer relationships while
protecting retailers from those who seek to take advantage
who listen
of them. Signifyd has a heritage of using AI to allow retailers None of which is to say retailers face only doom and gloom.
to remove barriers between themselves and customers while There is plenty that retailers are doing, and can continue
shifting financial liability for fraud and chargebacks from to do, to attract customers and win them as loyal followers.
retailers to Signifyd. Consumers in 2020 understand they are in a position of
strength. They shop anywhere, anytime, using any channel.
Signifyd’s Commerce Protection Platform, for instance, automates
online order flows, instantaneously sorts fraudulent orders from For consumers, controlling their commerce destiny has
legitimate ones, triages abuse chargebacks stemming from become like breathing — a daily activity that takes place
customer disputes and future-proofs the enterprise against without even thinking about it. Retailers need to embrace
rapidly evolving payments compliance issues. It also includes that reality and celebrate the fact that there are willing
a financial guarantee backing the platform’s decisions. consumers out there who want to buy what they are selling.
Those elements have a direct effect on customer experience The fun part for retail professionals is building experiences
and help renew the trust between good customers and the that allow their customers to do that without encountering
online retailers they shop. The platform speeds up the fulfillment the kind of friction that setting up protective barriers
process and the process of getting word out to customers generates. It takes a certain fearlessness, a confidence that
that their orders are on their way. The platform’s instant decisions the enterprise is protected by the systems and people that
reduce the number of orders assigned the “pending” status. have been put in place to do just that.
And its machine-learning core means that review operations can Retail has been evolving since its inception and it will
scale up and keep up during order spikes brought on by holidays, continue to do so. We are currently in the midst of a
seasonal buying patterns or promotions. transformation that brings with it the challenges and
potential that comes with any great change. The key
The Commerce Protection Platform’s three product modules for 2020 and for 2030 and beyond, is to constantly
— the Agent Console, the Decision Center and Insights listen to consumers and in that way let them define
Reporting — give retailers the kind of valuable insights into the way of the future.
customers’ desires and intent that can build strong relationships.
27About Signifyd
Signifyd enables merchants to grow with confidence by providing an end-to-end
Commerce Protection Platform. Powered by the Signifyd Commerce Network of more
than 10,000 merchants selling to more than 250 million consumers worldwide, its
advanced machine learning engine is able to protect merchants from fraud, consumer
abuse and revenue loss caused by barriers and friction in the buying experience.
Signifyd counts among its customers a number of companies on the Fortune 1000
and Internet Retailer Top 500 lists. Signifyd is headquartered in San Jose, CA., with
locations in Denver, New York, Belfast and London.
HEADQUARTERS
2540 North First Street, 3rd Floor
San Jose, CA 95131
U.S.A.
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