Ecommerce fraud could be more costly than you think

Are fraudulent orders just a cost of doing business? If so, that cost may be more than it appears.

Ecommerce fraud isn't just about the lost value of stolen goods. It's a hidden drain on your business, impacting:

• Customer Acquisition: Fraud erodes trust, making it harder to attract and retain loyal customers.
• Order Fulfillment: Wasted resources on shipping and processing fraudulent orders.
• Operational Costs: Increased chargeback fees and dispute management.
• Reputation: Negative customer experiences due to fraud can damage your brand.

Every fraudulent order wastes resources on shipping, operations, and payment processing. Chargeback fees and disputes add to the expense. A study by Signifyd found that for every $100 lost to fraud, the true cost can be as high as $231.

Understanding these hidden costs is crucial for developing a comprehensive fraud management strategy. It's not just about stopping bad orders; it's about optimizing your entire ecommerce operation for sustainable growth.

Read the full article to gain deeper insights into the true cost of ecommerce fraud.