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1、COMPLIMENTS OF:RETAILCOMMERCE 360AUGUST 2024SHOPPINGCART MAGICCART MAGICHow retailers offer fastand easy online checkout Copyright 2024 Digital Commerce 360&Vertical Web Media LLC.All rights reserved.CHARTSDrivers of friendly fraud.6Younger consumers are most likely to commit friendly fraud.15EDITOR

2、S NOTE7 INSIGHTS RETAILERS LEARNED ABOUT ONLINE CHECKOUT .3A DUAL STRATEGY FOR COMBATING FRIENDLY FRAUD .5HOW VERIFYING AN ONLINE SHOPPERS ADDRESS GOES BEYOND DELIVERABILITY .165 WAYS TO MAKE CHECKOUT FASTER.25RETAILCOMMERCE 360SPONSORSHow Address Verification Improves the Online Shopping Experience

3、 and Boosts Your Bottom Line.7 Copyright 2024 Digital Commerce 360&Vertical Web Media LLC.All rights reserved.Whether a customer is shopping on desktop or a mobile device,every moment and decision count even after a shipment leaves a loading dock and the package is opened at its final destination.No

4、t only can customers lose interest,get distracted or assertively change their mind about a purchase,resulting in an abandoned cart.They can also grow impatient while deliveries are in transit.Retailers grapple with abandoned carts and customer confusion every day.This months issue of Strategy Insigh

5、ts is all about the decisions those merchants make to derisk cart abandonment and keep customers happy while on the path to completing a given order,priming them to return again.The Digital Commerce 360 team packed this edition with insights and learnings directly from online retailers who found the

6、mselves trying to get more shopping carts across the finish line and keep customers satisfied before other circumstances could intervene.These checkout and shopping cart solutions can feel like magic hence,the title we put on the cover.They include software-based tools,but in all cases,there are dee

7、ply human elements at play.Without having a visibility into a given shoppers brain,theres no way to entirely know their intent,level of confusion or expectations.Thats where strategy comes in.7 INSIGHTS RETAILERS LEARNED ABOUT ONLINE CHECKOUTeditors noteRETAILCOMMERCE 360SHOPPING CART MAGIC:HOW RETA

8、ILERS OFFER FAST AND EASY ONLINE CHECKOUTEDITORS NOTE4 Copyright 2024 Digital Commerce 360&Vertical Web Media LLC.All rights reserved.In the stories that follow,we dive into two common problems:friendly fraud and address verification.We will also include a roundup of tips based on stories retailers

9、told us about choices they made that had positive impacts on their checkout results.Heres a quick preview of some key takeaways:1.45%of retailers in a recent survey said they saw friendly fraud perpetrators who were just trying to get something for free but 41%also said they saw cases where well-mea

10、ning shoppers were just confused during their checkout experience.2.The apparel brand Everlane flags and checks suspicious orders,while making policies clear to shoppers,to minimize fraudulent chargebacks.3.53%of consumers surveyed reported having disputed a transaction without first contacting the

11、retailer.4.Younger consumers were most likely to dispute charges with a retailer,even when they were satisfied with the product they ordered,with Gen Zers accounting for 42%of those saying they would do so in a 2024 Sift/Researchscape survey.5.The apparel merchant Fabletics shared that it increased

12、its package deliverability rate to almost 100%after making a switch with its address verification service provider.6.The furniture seller American Freight cited the importance of guest checkout as an option,saying it is responsible for around 60%of purchases that the American Freight website handles

13、.7.The mens apparel brand True Classic credited its use of post-purchase software from ParcelLab with improving its checkout and return experience,thus boosting its order rate by 22.47%.Brian Warmoth director of editorial,retail Digital Commerce 360RETAILCOMMERCE 360So-called“friendly fraud”encompas

14、ses two types of disputes initiated by online shoppers:One kind is not friendly,and the other is not fraud.As the behaviors behind these chargeback disputes differ,online retailers must adopt loss-prevention strategies that fit each type of customer motivation.What both types of disputes have in com

15、mon is that the person disputing the transaction is the legitimate cardholder,not a professional criminal who has stolen a consumers card number.Many fraud experts prefer a term like first-party abuse to the misleading phrase“friendly fraud.”The big difference is the shoppers intent.Online merchants

16、 say the biggest driver of first-party abuse is the desire to get goods for free.That leads consumers to contact their card issuer to say they never received goods that did in fact arrive or that the product was damaged when it wasnt.45%of merchants cited that shopper motivation Copyright 2024 Digit

17、al Commerce 360&Vertical Web Media LLC.All rights reserved.BY DON DAVISSome so-called friendly fraud is intentional shoppers simply trying to get goods for free.But much of it stems from customer confusion.The two behaviors are quite different and require online retailers to implement separate strat

18、egies to minimize losses from these disputes.A DUAL STRATEGY FOR COMBATING FRIENDLY FRAUD RETAILCOMMERCE 360SHOPPING CART MAGIC:HOW RETAILERS OFFER FAST AND EASY ONLINE CHECKOUTA DUAL STRATEGY FOR COMBATING FRIENDLY FRAUD 6 Copyright 2024 Digital Commerce 360&Vertical Web Media LLC.All rights reserv

19、ed.in a survey reported in the 2024 Global Ecommerce Payments and Fraud Report from trade group the Merchant Risk Council,Visa Acceptance Solutions,Visa fraud-prevention subsidiary Verifi and market research firm B2B International.However,retailers also cited several other reasons honest consumers d

20、ispute transactions.These include shoppers being confused by product descriptions or amounts,fraudulent card use by a family member,wanting to return goods outside the return window and product quality not being what the customer expected.This kind of chargeback dispute does not stem from an intent

21、to commit fraud.Rather,it is rooted in shopper confusion or unhappiness with the product.Accordingly,it can be addressed by online retailers providing customers with more information about products and return policies,as well as a way to contact the retailer if the shopper has questions or concerns.

22、Attempt to obtain free goods or servicesTransaction descriptor confusionWanting to return goods outside of return periodTransaction amount confusionFamily fraudUnwanted subscription/recurring chargeBuyers remorseQuality of goods not as expectedDRIVERS OF FRIENDLY FRAUD What drives first-party abuse?

23、Source:“2024 Global Ecommerce Payments and Fraud Report”by Cybersource,Verifi,and Merchant Risk Council.Survey of more than 1,000 merchants.45%41%38%37%35%32%29%29%RETAILCOMMERCE 360sponsored articleHOW ADDRESS VERIFICATION IMPROVES THE ONLINE SHOPPING EXPERIENCE AND BOOSTS YOUR BOTTOM LINE An execu

24、tive conversation with Greg Brown,Melissa fraud immediately,instead of a review after a transaction has been processed.Furthermore,it reduces customer service costs because fewer address-related issues equals less phone calls,tickets and bad reviews.What is the best method for integrating address ve

25、rification into your ecommerce operations?The main pro to developing a Custom API Integration using postal data from USPS,or Canada Post,for example is that its highly customizable,allowing for specific data fields and workflows to be integrated.Then,you can optimize it for performance and specific

26、use cases.The con:It takes significant development time and technical expertise.Ongoing maintenance and updates may be necessary to accommodate changes to APIs.You need to develop your own rules for parsing and standardization to effectively match against postal reference datasets.When it comes to H

27、ybrid Custom API integration,you can develop a custom API integration using a data quality vendor that provides accurate,updated address data.The pros:You can take advantage of the vendors experience and expertise in developing the complex,fuzzy matching and standardization rules that need to be par

28、t of a successful address verification process.Many vendors receive USPS CASS and/or Canada Post SERP certification that ensure their address solutions meet the minimum requirements for matching addresses.For instance,for USPS CASS certification,the software must pass with a minimum score of 98.5%fo

29、r ZIP+4,carrier route,Five-Digit ZIP and LACSLink,100%for delivery point coding,eLOT,DPV or DSF2,RDI and Perfect Address.Additionally,ongoing maintenance and updates will be handled by the vendor.The cons:Costs can vary based on the volume and types of data required.For Third-party Application,there

30、 are apps available through many popular CRM,ecommerce and payment processing marketplaces,including Salesforce,Dynamics 365,Shopify and Stripe,among others.The main pros:Its designed specifically for the platform,ensuring compatibility and often offering deep integration.Installation and setup can

31、be more straightforward,with support available.The cons,on the other hand,is that it may not cover all custom requirements.Address verification is good for everyone.It helps ensure customers orders are delivered to the right place,and it helps retailers save money on shipping.To gain more insights i

32、nto the benefits of address verification,Digital Commerce 360 spoke with Greg Brown from Melissa and Ryan Lee from Nova Module,Melissas technology integration partner.How does accurate address verification transform the customer experience in retail and ecommerce?It allows for faster shipping,and it

33、 does so while reducing address correction fees and costs due to failed or delayed shipments.It also prevents fraud and protects customer data by allowing staff to identify suspicious transactions during checkout.More accurate deliveries means no surprises and more satisfied customers.What role does

34、 address verification play in reducing shopping cart abandonment?Address autocompletion can suggest a valid and complete address at checkout.For example,it can ask,“Do you mean this address?”It reduces friction in the buying process by requiring fewer keystrokes to complete checkout.That,in turn,red

35、uces errors as only valid addresses are entered.Improved data quality helps increase effectiveness of personalization efforts and extend customer lifetime value(LTV).Could you explain some of the ways that address verification helps ecommerce businesses save money and improve operational efficiencie

36、s?Address verification will validate whether the address is residential or commercial.Many shippers charge a“residential surcharge”knowing this up front ensures you can provide the most accurate rates,so no more hidden costs eat into your profits.It also ensures more on-time deliveries when you know

37、 whether the address is residential or commercial.For instance,if a customer lives at a residence but the address was entered as commercial(and it wasnt validated),the carrier may not deliver the package outside of business hours.This means the delivery is delayed and not ideal.Automated address val

38、idation means more efficient behind the scenes.It also provides the ability to identify possible 9 Copyright 2024 Digital Commerce 360&Vertical Web Media LLC.All rights reserved.“The best defense against friendly fraud is really clear communication,”said TJ Stein,customer experience and operations l

39、eader at direct-to-consumer apparel brand Everlane Inc.,during a webinar in December 2023.But thats not going to stop the online equivalent of a shoplifter,someone who simply wants to get merchandise for free by denying that the goods arrived intact.Ways to thwart that kind of behavior include under

40、standing what kind of shoppers are most likely to commit this type of fraud and what kind of purchases raise red flags that suggest fraudulent intent.At the same time,retailers including Stein point out that its important to adjust fraud-prevention policies to take into account time of year and prom

41、otional periods.During the holidays,for example,consumers may make larger purchases than normal and place several orders in a single day,behaviors that might at other times signal fraud.HOW MUCH OF ECOMMERCE FRAUD IS FRIENDLY FRAUD“Friendly fraud”is a big deal.20%of fraudulent disputes stem from fir

42、st-party misuse of the dispute process,according to the 2024 Global Ecommerce Payments and Fraud Report,and 63%of merchants surveyed said this type of fraud is increasing(including 69%of North American merchants).The growth in online purchasing and higher prices might be reasons more consumers are d

43、isputing transactions,the report said.At luxury retailer Saks,part of Canadian department store operator Hudsons Bay Company,customer service calls from shoppers claiming not to have received merchandise have more than doubled in just a few years,Saks president Marc Metrick said in a SHOPPING CART M

44、AGIC:HOW RETAILERS OFFER FAST AND EASY ONLINE CHECKOUTA DUAL STRATEGY FOR COMBATING FRIENDLY FRAUD“The best defense against friendly fraud is really clear communication.”TJ Stein,customer experience and operations leader,Everlane Inc.RETAILCOMMERCE 360SHOPPING CART MAGIC:HOW RETAILERS OFFER FAST AND

45、 EASY ONLINE CHECKOUTA DUAL STRATEGY FOR COMBATING FRIENDLY FRAUD 10 Copyright 2024 Digital Commerce 360&Vertical Web Media LLC.All rights reserved.January 2024 talk at the annual conference of the National Retail Federation.Whereas in the past,Saks would have issued a refund,Metrick said the retail

46、er now has invested in additional fraud-prevention techniques,including determining whether the customer has previously made such a claim.A consumer who successfully files a chargeback is nine times more likely to do it again compared to someone filing for the first time,according to Chargebacks911,

47、a provider of software that helps merchants fight such disputes.Moreover,40%of consumers who commit this type of fraud will do it again within 60 days,the company said.Visa last year amended its chargeback rules to make it easier for online retailers to challenge disputes by consumers who previously

48、 had made similar complaints.Whereas previously Visa only allowed the merchant to submit evidence of one prior dispute by the consumer,now evidence of two such disputes by the same individual results in the cardholder claim being rejected.To successfully challenge a chargeback in this way,the e-reta

49、iler must provide at least two data points that link the consumer making the new claim to previous disputes.The data points that can connect the shopper to the previous disputes include IP address,email address,physical address and telephone number.Mastercard also announced in late 2023 modification

50、s in its rules designed to protect retailers from first-party abuse,with its new First-Party Trust program slated to roll out in 2024.The percentage of fraudulent disputes that stem from first-party misuse of the dispute process.Source:2024 Global Ecommerce Payments and Fraud Report20RETAILCOMMERCE

51、360SHOPPING CART MAGIC:HOW RETAILERS OFFER FAST AND EASY ONLINE CHECKOUTA DUAL STRATEGY FOR COMBATING FRIENDLY FRAUD 11 Copyright 2024 Digital Commerce 360&Vertical Web Media LLC.All rights reserved.WHAT CHARGEBACKS COST ONLINE RETAILERS A cardholder complaint,if not successfully fought by the onlin

52、e retailer,results in the e-retailer losing the value of the sale and absorbing other costs.That includes automatic fees that typically range from$20 to$100,according to Visa,once a consumer initiates a chargeback.Even higher fees apply to merchants deemed high-risk.In addition,the report by the Mer

53、chant Risk Council and others estimates each instance of first-party misuse costs a merchant$74 to handle.Whats more,e-retailers that have lots of chargebacks may see their card-processing fees rise as a result and can even be cut off by card-processing companies if their chargeback rates get too hi

54、gh.The MRC report says more than half of retailers surveyed combat first-party abuse by flagging and checking suspicious orders and find that to be the most effective tactic.Second in both use and efficiency,the retailers said,were consumer notifications and making policies,such as a return policy,v

55、isible to shoppers.HOW EVERLANE COMBATS FRIENDLY FRAUD Apparel brand Everlane uses flagging and checking,as well as making policies clear as tactics to minimize both intentionally fraudulent chargebacks and those that result from customer confusion,Stein said in the December webinar sponsored by the

56、 Merchant Risk Council.Customer confusion often results,he said,from the consumer not recognizing the merchant name that appears on a credit card statement,the shopper forgetting they signed up for a recurring subscription,or a refund the consumer requested taking longer than expected to show up in

57、the cardholders account.The estimated cost for retailers once once a consumer initiates a chargeback.Even higher fees apply to merchants deemed high-risk.Source:2024 Global Ecommerce Payments and Fraud Report$74RETAILCOMMERCE 360SHOPPING CART MAGIC:HOW RETAILERS OFFER FAST AND EASY ONLINE CHECKOUTA

58、DUAL STRATEGY FOR COMBATING FRIENDLY FRAUD 12 Copyright 2024 Digital Commerce 360&Vertical Web Media LLC.All rights reserved.To combat this kind of dispute,he said Everlane tries to communicate clearly throughout the purchase process what was purchased,when it will arrive,its return policies and how

59、 the customer can get help if needed.It also ensures all the emails the customer receives are branded by Everlane.For example,shipping notification emails are clearly marked as coming from Everlane and not a delivery service.Sending confirmation emails“is a must-do after every transaction,”says Char

60、gebacks911.“Not only could this help dissuade potential cyber-shoplifting,but it also keeps legitimate customers informed about their order status.This makes buyers less likely to request a chargeback.”Recognizing that an unfamiliar name on a credit card statement is one of the most common reasons h

61、onest shoppers dispute a transaction,Everlane makes sure its name appears on card statements.It also includes its phone number on the statement so that a customer with a concern can reach Everlane,instead of calling their bank if they have questions about a purchase and potentially initiating a char

62、geback.Providing shoppers with a way to contact the retailer is important,as 53%of consumers surveyed say they have disputed a transaction without first contacting the retailer,according to Chargebacks911s 2024 Cardholder Dispute Index report.Stein also said the E ecommerce site clearly indicates at

63、 every step of the purchase process when items are not eligible for returns.If the purchase of a product is final,Everlane notes that on the product page,at checkout and in confirmation emails.“Its really clear all the way through the user journey,”Stein said.The percentage of surveyed consumers who

64、 said they have disputed a transaction without first contacting the retailer.Source:Chargebacks911s 2024 Cardholder Dispute Index report53RETAILCOMMERCE 36013 Copyright 2024 Digital Commerce 360&Vertical Web Media LLC.All rights reserved.SHOPPING CART MAGIC:HOW RETAILERS OFFER FAST AND EASY ONLINE C

65、HECKOUTA DUAL STRATEGY FOR COMBATING FRIENDLY FRAUD HOW ONLINE RETAILERS CAN FIGHT CHARGEBACKS But not all chargebacks stem from customer confusion.Thats why Everlane stores data on all transactions so that it can better fight chargebacks that occur when a customer disputes a purchase,Stein said.Tha

66、t includes keeping data on the shipping address,IP address,any communication with the shopper and photos a delivery service might provide of a parcel left at the shoppers doorstep.That kind of information can help the merchant challenge a chargeback.And,he said,its important that a merchant have str

67、ong evidence at the ready when disputing a claim as the card-issuing bank likely will only take one or two minutes to consider a chargeback request before deciding whether to refund the amount to the consumer and charge the merchants account for the purchase price.Everlane also carefully examines ce

68、rtain kinds of transactions that are especially likely to result in chargeback claims.One example is bulk orders of gift cards,a common type of holiday fraud,Stein said.Indicators of likely fraud include large or frequent purchases,or a purchaser who has five or more payment methods on file.He said

69、Everlane also looks at the risk profile of the gift card recipient for a clue whether the transaction is fraudulent.“We even look at the messages contained within the gift cards,”he said.“Fraudsters typically dont put a lot of creative thought into these messages.Sometimes a manual review can elicit

70、 some pretty obvious signs of fraud.”ADJUST FRAUD PREVENTION DURING THE HOLIDAYS Fraud experts say other signs that a transaction might be fraudulent include a consumer making many transactions quickly or shipping RETAILCOMMERCE 36014 Copyright 2024 Digital Commerce 360&Vertical Web Media LLC.All ri

71、ghts reserved.SHOPPING CART MAGIC:HOW RETAILERS OFFER FAST AND EASY ONLINE CHECKOUTA DUAL STRATEGY FOR COMBATING FRIENDLY FRAUD items to an address thats different from the billing address of the credit or debit card being charged.However,Stein said,Everlane adjusts its rules during the winter holid

72、ay shopping season.During the holidays,consumers buy more and more frequently,theyre more likely to purchase for others and thus be shipping items to an address not their own,and theyre more likely to engage in bracketing purchasing items of different sizes with plans to return those that dont fit,h

73、e said.They may also buy several times a day,he said.“During Black Friday,we might have a customer come back three or four times that day to take advantage of a promotion,”Stein said.All of those behaviors might trip a merchants fraud-warning system if the system is not adjusted to take account of h

74、oliday shopping behavior,he said.He added that automation helps by enabling Everlane to customize its fraud-prevention rules based on such factors as time of year,fraud issues the brand is seeing and the impact of those issues.Everlane uses fraud-prevention tools from Sift,which is listed as the pay

75、ment security and fraud-prevention provider to four retailers in the Digital Commerce 360 Top 1000,a ranking of North Americas leading retailers by online sales.Everlane is No.271 in the Top 1000.Online merchants should adjust their fraud-fighting defenses in several ways during the holiday season w

76、hen the volume of website traffic and sales increase,said Rebecca Alter,trust and safety architect at Sift,who spoke with Stein on the December webinar.RETAILCOMMERCE 36015 Copyright 2024 Digital Commerce 360&Vertical Web Media LLC.All rights reserved.That includes raising the thresholds for flaggin

77、g a transaction as potentially risky and automatically accepting more purchases.Its also important,Alter said,to give the riskiest transactions the highest priority so that analysts are sure to get to them.MORE TIPS FOR FIGHTING FRIENDLY FRAUD She also said merchants should be aware that younger con

78、sumers are more likely to seek to defraud online retailers by claiming not to have received orders that did in fact arrive.She noted a Sift survey showed that 42%of Gen Z consumers,those born between 1996 and 2010,say they have committed or would commit friendly fraud,such as by denying they receive

79、d an item that did arrive.Older consumers were less likely to engage in such behavior,with 22%of millennials,10%of Gen X and 5%of baby boomers agreeing they have or would commit such first-party fraud.Theres no foolproof way for online retailers to stop consumers,honest or dishonest,from disputing t

80、ransactions.But good website design and follow-up communication will minimize complaints by honest consumers.As for those seeking to get away without paying,email confirmations of the order being placed and of successful delivery may dissuade some from giving criminality a try.For others,online reta

81、ilers can minimize fraud losses by keeping track of bad actors,paying attention to warning signs of fraud and storing the kinds of evidence of successful delivery that help merchants defeat bogus chargeback claims.SHOPPING CART MAGIC:HOW RETAILERS OFFER FAST AND EASY ONLINE CHECKOUTA DUAL STRATEGY F

82、OR COMBATING FRIENDLY FRAUD Gen Z42%YOUNGER CONSUMERS ARE MOST LIKELY TO COMMIT FRIENDLY FRAUDPercentage of consumers who have or would dispute a purchase after receiving the goods and being satisfied with them,by generationSource:Sift/Researchscape survey of 1,016 U.S.online consumers,November 2023

83、.Millennials22%Gen X10%Baby boomers5%RETAILCOMMERCE 360 Copyright 2024 Digital Commerce 360&Vertical Web Media LLC.All rights reserved.RETAILCOMMERCE 360With one software change,web-only apparel merchant Fabletics increased its conversions,sped up its checkout process and increased its package deliv

84、erability rate.At the end of 2022,the El Segundo,California-based retailer switched its address verification service(AVS)provider to Smarty and has been reaping the benefits ever since,said Mel Cummings,vice president of product management and user experience at Fabletics.Address verification is whe

85、n software refers to a database to validate the shipping address a shopper has entered on a retailers checkout page.If needed,the software may suggest a more accurate address.In doing so,it can propose a type of unit or apartment number,or suggest the additional four numbers on a ZIP code that indic

86、ates a delivery route.BY APRIL BERTHENEAddress verification services can bring ecommerce package deliverability to nearly 100%.Plus,new technology with autocomplete and fraud protection can help boost other KPIs for merchants,including conversion,checkout speed and chargeback reduction.HOW VERIFYING

87、 AN ONLINE SHOPPERS ADDRESS GOES BEYOND DELIVERABILITYSHOPPING CART MAGIC:HOW RETAILERS OFFER FAST AND EASY ONLINE CHECKOUT17 Copyright 2024 Digital Commerce 360&Vertical Web Media LLC.All rights reserved.HOW VERIFYING AN ONLINE SHOPPERS ADDRESS GOES BEYOND DELIVERABILITYFabletics noticed that its p

88、revious AVS software didnt always trigger when it needed to,such as when a shopper needed a secondary identifier for an apartment number,which led to deliverability issues,Cummings said.The athletic apparel brand put out a request for proposals to see if there was better technology it could implemen

89、t.After an A/B test period with Smarty,Fabletics implemented the new service.The biggest change to the technology was an autocomplete feature.In this case,when a shopper starts typing her address,the software will suggest addresses that begin with those same numbers.The shopper then selects her addr

90、ess,after which the software populates all of the address fields with a verified address.This change has helped boost Fabletics package deliverability or the percentage of packages that are delivered successfully to nearly 100%,Cummings said.Shipping deliverability is a key metric for merchants to m

91、onitor.Thats because its expensive when an order is delivered to the wrong address.Often,this means the retailer loses the product after already incurring shipping costs.The shopper contacts customer service to ask about her order and the retailer is on the hook for that cost.Then,the retailer reshi

92、ps the product,often eating that cost of a new product in addition to shipping costs.Whats more,this is a poor experience for customers,who may choose not to shop with that brand again,said Nick Kramer,vice president of applied solutions at management consulting firm SSA&Company.“It very often means

93、 it ends your relationship with the customer and therefore has a tremendous impact on customer lifetime value and brand reputation,”Kramer said.While shoppers may blame the retailer or shipping carrier for the wrong delivery,its most often a shoppers typo that causes the delivery problem,Kramer said

94、.“Our main win hasnt been about more sales or fewer abandoned carts.Its been about that confidence in knowing were making quality products for actual people,not scammers.”Matt Aird,chief technology officer,Custom NeonRETAILCOMMERCE 360SHOPPING CART MAGIC:HOW RETAILERS OFFER FAST AND EASY ONLINE CHEC

95、KOUT18 Copyright 2024 Digital Commerce 360&Vertical Web Media LLC.All rights reserved.To guard against this scenario,online retailers commonly provide address verification services on the checkout page.The softwares main benefit is potentially increasing package deliverability to a higher rate,such

96、as going from a 96%package deliverability experienced without any address verification service,to almost 100%,Kramer said.“Even though thats a small percent,that makes a huge difference in a retailers revenue,”Kramer said.And while the address verification technology is not new,a few AVS vendors hav

97、e additional services that can help make checkout even better.Additional features may include address autocomplete and layering in fraud prevention.These services can help increase conversion,speed up checkout and decrease fraudulent orders,which all benefit a retailers bottom line.SPEED MATTERS AT

98、CHECKOUT34.5%of online shoppers say a fast checkout will most likely lead them to make an online purchase,according to a January 2024 Bizrate Insights and Digital Commerce 360 survey of 1,004 online shoppers.A crucial factor in a fast checkout is how many fields a shopper has to fill out.With the au

99、tocomplete feature,Cummings said Fs checkout is at least 25 seconds faster compared with before it had the autocomplete feature.The most noticeable impact on speed was for new customers and for mobile shoppers,which accounts for roughly 80%of its shoppers,Cummings said.“Its super impactful for new c

100、ustomers,”Cummings said.“It helps their checkout go so much more quickly than if they had to type all the words.”HOW VERIFYING AN ONLINE SHOPPERS ADDRESS GOES BEYOND DELIVERABILITYRETAILCOMMERCE 360SHOPPING CART MAGIC:HOW RETAILERS OFFER FAST AND EASY ONLINE CHECKOUT19Package deliverability also is

101、key for new customers,as it can lead to“huge disappointment”for first-time customers who do not receive their order,which will certainly impact customer retention,Cummings explained.VERIFYING ADDRESSES AND REAL CUSTOMERSHelping and verifying first-time customers was also an important component to ad

102、dress verification services for web-only sign merchant Custom Neon.The merchant sells decorative LED signs with words and designs of a shoppers choosing.For its consumer-facing products,Custom Neons average order value is$350.99%of the merchants products are custom-made by hand and therefore cannot

103、be resold,said chief technology officer Matt Aird.“Its very important to us that we have a secure online transaction,”Aird said.“We probably have an unusually strong case for that need because not only are we shipping worldwide,but we also need to have that level of security and confidence because w

104、e dont have product that can be returned because if the address is wrong,it doesnt go back on the shelves.”Copyright 2024 Digital Commerce 360&Vertical Web Media LLC.All rights reserved.19HOW VERIFYING AN ONLINE SHOPPERS ADDRESS GOES BEYOND DELIVERABILITYHow many fields a customer has to fill out is

105、“super impactful for new customers.It helps their checkout go so much more quickly than if they had to type all the words.”Mel Cummings,vice president of product management and user experience,FableticsRETAILCOMMERCE 360 Copyright 2024 Digital Commerce 360&Vertical Web Media LLC.All rights reserved.

106、20When a shopper purchases an order,Custom Neons team goes to work designing the product and preparing its lasers.Its a time-consuming and expensive process that the merchant needs to get right the first time.Plus,Custom Neon may ship the product in multiple packages that can be at least a dozen fee

107、t long.With this shipping expense and product customization,the merchant needs delivery to reach the correct location as well.Custom Neon switched its address verification service in 2023 to the payment platform BlueSnap.It chose the vendor because it worked well as an added layer with its fraud pre

108、vention provider.Plus,BlueSnap has a strong international presence,which was key because Custom Neon ships to 50 countries,Aird said.Similar to what other merchants might see,when Custom Neon switched providers,the rate at which its packages were undelivered went from a small number to a near-neglig

109、ible number,Aird said.But the real benefit has been fewer chargebacks,because the system verifies the shipping address also is tied to the shoppers credit card address,he said.“Our main win hasnt been about more sales or fewer abandoned carts,”Aird said.“Its been about that confidence in knowing wer

110、e making quality products for actual people,not scammers.”The confidence and trust that address verification brings to retailers also translates to the shopper,said SSA&Companys Kramer.“It frankly makes the brand seem more reliable and it seems more mature,and frankly it conveys a brand message that

111、 this is a professional company that is looking out for customers,”Kramer said.SHOPPING CART MAGIC:HOW RETAILERS OFFER FAST AND EASY ONLINE CHECKOUTHOW VERIFYING AN ONLINE SHOPPERS ADDRESS GOES BEYOND DELIVERABILITYThe percentage of online shoppers who said a fast checkout will most likely lead them

112、 to make an online purchase.Source:Bizrate Insights and Digital Commerce 360 survey of 1,004 online shoppers,January 202434.5RETAILCOMMERCE 360SHOPPING CART MAGIC:HOW RETAILERS OFFER FAST AND EASY ONLINE CHECKOUT21 Copyright 2024 Digital Commerce 360&Vertical Web Media LLC.All rights reserved.HOW VE

113、RIFYING AN ONLINE SHOPPERS ADDRESS GOES BEYOND DELIVERABILITYBENEFITS BEYOND DELIVERABILITYIncreasing its conversion rate was also a major win for Fabletics after implementing its new address verification service.The retailer A/B tested Smarty in October 2022 against its current address verification

114、 service for two weeks for shoppers on the checkout page that needed verification.For its first-time male customers,Fabletics conversion rate increased 2.4%for shoppers who used the Smarty verification service compared with shoppers who used the previous one.For international shoppers,Fabletics did

115、not have an address verification service in place,so it A/B tested the new service with its current experience of no service.Conversion increased 3.6%for its German membership customers and 1.6%for its French membership shoppers,compared with results with no verification service.In Canada,the conver

116、sion increase was 15%higher and in Spain was 9.6%higher,Cummings said,with the caveat that it had a low transaction volume in those two markets during the two-week test period,which likely inflated the numbers.“We were really encouraged by it,and it definitely helped seal the email to move forward,”

117、Cummings said.“Address verification is an obvious no brainer.Its table stakes for running a successful business operation.”Nick Kramer,vice president of applied solutions,SSA&CompanyRETAILCOMMERCE 360SHOPPING CART MAGIC:HOW RETAILERS OFFER FAST AND EASY ONLINE CHECKOUT22 Copyright 2024 Digital Comme

118、rce 360&Vertical Web Media LLC.All rights reserved.HOW VERIFYING AN ONLINE SHOPPERS ADDRESS GOES BEYOND DELIVERABILITYWhile the increase in conversion has leveled off as more traffic comes to the site,the service still has provided an overall gain in conversion that Fabletics benefited from during i

119、ts 2022 holiday season and throughout 2023 and into 2024,Cummings said.This is a noteworthy increase in conversion compared with what other merchants may experience with implementing an address verification service,said SSA&Companys Kramer.He estimates retailers could increase conversion rates by 0.

120、1%to 0.5%after implementing address verification.“I dont want to over-emphasize this over all the other levers that you can do for conversion,for ease of checkout;there are much more important factors,but everything that helps increase conversion is worth doing,”Kramer said.IMPLEMENTATION AND COSTSF

121、or Custom Neon to implement its new address verification service,it took a few weeks of researching which partners to choose,then paperwork in the various countries where it ships products,then a few days of technical integration and then a few weeks of testing,Aird says.“This is probably the experi

122、ence of a medium-sized customer if they run their own website,”Aird assessed.“Integration,partners that do this,will say its cut-and-paste,drag-and-drop or plug-and-play,”which he said is typically never the reality.It costs roughly 20 cents per transaction for the service,Aird explained.For Fableti

123、cs,it also took a few months to implement,including the request for proposal,the testing period and then signing the The percentage of online shoppers who said they had an order cancel because of inventory or delivery issues in the first half of 2023.Source:Bizrate Insights and Digital Commerce 360

124、survey of 1,004 online shoppers,January 202423RETAILCOMMERCE 360SHOPPING CART MAGIC:HOW RETAILERS OFFER FAST AND EASY ONLINE CHECKOUT23 Copyright 2024 Digital Commerce 360&Vertical Web Media LLC.All rights reserved.HOW VERIFYING AN ONLINE SHOPPERS ADDRESS GOES BEYOND DELIVERABILITYfinal agreements.F

125、abletics has unlimited address lookups as long as it doesnt exceed 100 lookups a second,Cummings said.The merchants annual contract is in the tens of thousands of dollars range,she said.When vetting vendors,Cummings did note that there was a huge range of costs when looking at service providers in t

126、his category,likely because of the additional add-ons they could provide,such as autocomplete,fraud prevention and geolocation of addresses.Fabletics liked that Smarty did not charge per transaction.ADVICE FOR OTHER MERCHANTSShipping tracker Narvar Inc.says only 0.0017%of packages in its systems are

127、 not delivered due to incorrect addresses.“This statistic underscores the effectiveness of our address verification processes,though it also highlights that even a small percentage can impact operational efficiency due to the high volume of shipments we handle,”said Catherine Dummitt,vice president

128、of marketing at Narvar.23%of online shoppers said they had an order cancel because of inventory or delivery issues in the first half of 2023,according to a Digital Commerce 360 and Bizrate Insights survey of 1,017 online shoppers.Many businesses likely already have an address verification service,bu

129、t if they are still having several customer service calls about packages not being delivered to the right address,it may be worth looking into a new technology partner to reduce those associated costs and the poor shopper experience.“Address verification is an obvious no brainer,”Kramer said.“Its ta

130、ble stakes for running a successful business operation.”RETAILCOMMERCE 360Access exclusive content,benefit from personalized site features,and unlock exceptional savings.TAILOR YOUR ECOMMERCE JOURNEY DIGITAL COMMERCE 360 MEMBERSHIPSDigitalC of ecommerce experience and unique relationships built alon

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132、ls and add-ons to match your access with your actual needsSAVINGSExceptional benefits for accessible prices (because quality content shouldnt break the bank)Digital Commerce 360 Your ecommerce data compass for over 20 years1.Offer multiple payment optionsGiving customers a variety of payment options

133、 is an important way to make sure they complete the purchase,says Forever 21 chief marketing,digital and omni officer Jacob Hawkins.The apparel retailer allows consumers to pay via Apple Pay,Venmo,Paypal,Klarna and Amazon Pay.Its a matter of choosing a variety of payment types without overwhelming t

134、he customer,Hawkins said.“We dont want to have every one out there,because more is not always more;sometimes you confuse them with 20 different options,”he said.Payment types like Apple Pay and Paypal speed up the checkout process and save the time needed to enter credit card and shipping informatio

135、n,he added.Copyright 2024 Digital Commerce 360&Vertical Web Media LLC.All rights reserved.Copyright 2024 Digital Commerce 360&Vertical Web Media LLC.All rights reserved.BY MARY MEISENZAHLOnline retailers shared strategies theyve used to remove barriers in the checkout process and reduce cart abandon

136、ment.5 WAYS TO MAKE CHECKOUT FASTER RETAILCOMMERCE 360SHOPPING CART MAGIC:HOW RETAILERS OFFER FAST AND EASY ONLINE CHECKOUT5 WAYS TO MAKE CHECKOUT FASTER26 Copyright 2024 Digital Commerce 360&Vertical Web Media LLC.All rights reserved.2.Make guest checkout an optionRetailers often want customers to

137、make accounts and share data,but guest checkouts are often consumers preferences,says Lauri Joffe,chief marketing officer at American Freight.“Im definitely a lot more obsessed about user experience than I am about collecting data,”she said.Consumers choose guest checkout for a variety of reasons,in

138、cluding anonymity and not wanting to share data with a retailer.Its preferable to let the customer check out the way they want to,even if it means the retailer misses out on some data they could use to encourage future purchases.About 60%of purchases with the furniture retailer are made through gues

139、t checkout,Joffe said.3.But,give customers who want to be recognized a good experienceApparel retailer Tylers encourages customers to sign in with accounts through checkout provider Bolt.Bolt accounts recognize consumers across retailers and verify them before they are charged for the order.Having a

140、 recognizable checkout provider with credibility to customers creates trust,ecommerce director Justin Dermit said.“The more that people feel comfortable with Bolts checkout platform,the better off were going to be,because its just one less step to get the actual purchase,”Dermit said.Tylers does als

141、o offer guest checkout,but it tries to push consumers toward a Bolt account if they dont already have one,he said.RETAILCOMMERCE 360SHOPPING CART MAGIC:HOW RETAILERS OFFER FAST AND EASY ONLINE CHECKOUT5 WAYS TO MAKE CHECKOUT FASTER274.Create a personalized checkout pageThe apparel brand True Classic

142、 implemented post-purchase software vendor ParcelLab to improve the checkout and return experience,vice president of customer service Breanna Moreno said.At checkout,customers can see accurate personalized information about how long their order will take to ship and what shipping costs they will pay

143、,she said.ParcelLab also handles returns within the same system.That addition was“hugely beneficial”to True Classics checkout page,she said.Order rate increased 22.47%as a result.5.Skip the shopping cart in favor of a custom slide-out cartOnline grocery retailer Martie does not have a typical shoppi

144、ng cart page like many online retailers,says co-founder and CEO Louise Fritjofsson.Instead,the retailer created a custom cart feature that slides in from the side of the screen without taking the customer away from the product page.“This allows customers to easily view and assess their items without

145、 leaving their current page,eliminating disruptions and speeding up the path to purchase,”Fritjofsson said.“Now,with a quick glance,customers can confirm selections and proceed to checkout with one click,ensuring a seamless and efficient shopping experience for all customers.”The custom feature incr

146、eased Marties conversion rate by 23%.Copyright 2024 Digital Commerce 360&Vertical Web Media LLC.All rights reserved.RETAILCOMMERCE 360Digital Commerce 360s free resources provide real-time coverage on trending topics in retail and B2B ecommerceSEE WHATSTRENDINGFREE MEMBERSHIPDaily Access to Exclusiv

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