While e-commerce was flourishing slowly and gradually over the years, last year when the pandemic took over its demand greatly increased. With people switching to online mode of shopping and many platforms offering online services, the e-commerce industry became a life savior in the hard times.
However, while it did have a positive impact on the society during the pandemic, the past year was also the time when fraudulent activities in the e-commerce industry was greatly observed.
82 percent of the retailers who use e-commerce industry as a means for a living said in the survey report that they had seen an increase in fraudulent activities more than ever in the e-commerce business since the pandemic began with the promo abuse with a solid ratio of 46 percent and account takeovers at 43 percent being the biggest of two scams.
However, the saddest part is that these scams were not by retailers trying to gain more revenue. The retailers online are pretty honest with their work, but the scam came from individual fraudsters all set to affect your shopping or steal your money. Due to this, the retailers claim that they have seen a gap between the retailer consumer relationship and though 55 percent of the retailers claimed that they are confident that there shops online will be able to prevent any mishaps, the consumer trust has been affected and 34 percent consumers don't trust retailers now. On top of that, consumers don't understand that retailers aren't at fault in such mishaps and they are as helpless as the consumers and 40 percent of the consumers blame the retailer only.
Though the consumer loses their money or accounts in such processes, the retailers faces the biggest backlash because most consumers after going through scam don't shop from that same retailer again.
Hence in the survey 26 percent retailers claimed that such scams have affected their profitability rate while 34 percent said they have lost at least 10 percent of their e-commerce revenue in the past year.
This is really heartbreaking to see retailers trying to make a living out of sheer hard work that they put within their ecommerce businesses and some fraudsters just swiping it all the trust of the consumers that they have managed to get a hold of. Actions should be taken against such events so that the ecommerce industry can flourish greatly in the coming years because it does have a lot of potential.
H/T: Riskified.
Read next: Is Bitcoin Gaining Momentum When It Comes To Consumer and Business Adoption
However, while it did have a positive impact on the society during the pandemic, the past year was also the time when fraudulent activities in the e-commerce industry was greatly observed.
82 percent of the retailers who use e-commerce industry as a means for a living said in the survey report that they had seen an increase in fraudulent activities more than ever in the e-commerce business since the pandemic began with the promo abuse with a solid ratio of 46 percent and account takeovers at 43 percent being the biggest of two scams.
However, the saddest part is that these scams were not by retailers trying to gain more revenue. The retailers online are pretty honest with their work, but the scam came from individual fraudsters all set to affect your shopping or steal your money. Due to this, the retailers claim that they have seen a gap between the retailer consumer relationship and though 55 percent of the retailers claimed that they are confident that there shops online will be able to prevent any mishaps, the consumer trust has been affected and 34 percent consumers don't trust retailers now. On top of that, consumers don't understand that retailers aren't at fault in such mishaps and they are as helpless as the consumers and 40 percent of the consumers blame the retailer only.
Though the consumer loses their money or accounts in such processes, the retailers faces the biggest backlash because most consumers after going through scam don't shop from that same retailer again.
Hence in the survey 26 percent retailers claimed that such scams have affected their profitability rate while 34 percent said they have lost at least 10 percent of their e-commerce revenue in the past year.
This is really heartbreaking to see retailers trying to make a living out of sheer hard work that they put within their ecommerce businesses and some fraudsters just swiping it all the trust of the consumers that they have managed to get a hold of. Actions should be taken against such events so that the ecommerce industry can flourish greatly in the coming years because it does have a lot of potential.
Read next: Is Bitcoin Gaining Momentum When It Comes To Consumer and Business Adoption
