Holiday Preparations for Internet and Multichannel Retailers – Part 1
I thought I would take a moment to share some tips to help online retailers get the most out of each and every transaction as they are gearing up for the holiday season.
With many Internet and Multichannel Retailers typically generating the majority of their annual revenue during the 7-weeks leading up to the holidays, preparing early can help to ensure the highest Average Order Values. In this and later articles, I will offer a few tips to help online retailers get ready for what could be the most difficult holiday season to-date due to the current economic conditions.
First Up: Risk Managment:
To maximize revenue, online retailers need to ensure that they reduce the number of fraudulent orders that pass through their system. Some tips for cutting down on risk include:
- Validate the Cardholder’s Identify – By putting verification methods in place such as an Address Verification Service (AVS) and requesting the Card Verification Value Code (CVV) when the order process begins, merchants will be able to detect anomalies from the start. For those higher ticket items, consider putting a manual check in place to help weed out the good orders from the potential fraudulent ones.
- Fraud Screening – Consider looking at an outside fraud screening vendor such as Accertify, Kount or Vindicia who can perform hundreds of scoring techniques on orders to give merchants a better look into each transaction and verify if it is fraudulent.
- Take a Picture, or Be Invisible – Take the time to add advanced risk management techniques to your shipping process, especially for those higher ticket items. By taking electronic image (photo or video) of shipped orders, or marking the items with an invisible ink pen, you can reduce fraud.
- Request a Signature – While requesting a signature costs more, the cost of receiving a chargeback for a “lost” item is far worse. Getting that physical signature at the time of delivery adds another proof point to combat the “I never received the items” dispute.
In my next post, I will discuss how to increase revenue and improve customer satisfaction by offering alternative payment methods to your customers. Stay tuned!