As Bargain Hunters Make Online Marketplaces as Popular as Brick and Mortar Stores, Worldpay from FIS Shares Tips to Keep Marketplace Merchants Safe from Fraud this Holiday Season
- New research from Worldpay from FIS found online marketplaces are now as popular as physical stores.
UK(73 percent) and the US (62 percent) have the highest rate of bargain hunters.
- Worldpay from FIS shares tips with marketplace sellers to keep them safe from fraud during the holidays.
Worldpay’s new Future Shoppers Report found online marketplaces are now as popular as shopping in physical stores, with 77 percent of consumers having shopped through an online marketplace in the last 12 months, compared to 78 percent in a physical store and 51 percent on the stores’ branded websites. Gen X is leading the way with the adoption of marketplaces, with 81 percent of those aged 36-58 stating they had used an online marketplace in the past 12 months.
While online marketplaces have become a mainstream shopping channel, consumers still have a desire to be loyal to the brands they love. When asked if all things were the same (price, shipping speed, etc), almost 40 percent of consumers indicated they would prefer to shop directly with a brand, with just 15 percent indicating they would shop through a marketplace.
“With consumers set to be more mindful of how they spend this holiday season, merchants need to consider how they can replicate the marketplace experience within their own online offering,” Prados added. “Curating a marketplace experience as part of brand websites and pairing their own products with brands that have similar values is already being done successfully by a number of retailers.”
“People still want the holiday season to be special, they’re just changing how they create it. While it’s now fashionable to be frugal, consumers won’t accept a reduced experience. Now more than ever, merchants need to consider how they show up across multiple online channels, offering a wider variety of shopping options.”
The growing popularity of online marketplaces combined with the traditional holiday trends of increased fraud and goods dispute chargebacks, means that new marketplace sellers and brick and mortar merchants need to be extra vigilant to ensure safe selling and shopping over the holiday season.
To keep merchants safe from fraud and decrease the volume of chargebacks, Worldpay from FIS offers the following top tips:
- Use solutions such as 3DS (3D secure solution) to ensure ecommerce transactions are fully secure.
- Provide excellent customer service. Ensure you keep customers updated on the status of orders, including delivery progress and tracking. Be honest up front if there are likely to be delays and make it easy for customers to contact you so any issues can be resolved.
- Require signed proof of delivery to the agreed upon delivery address and use a reputable and reliable delivery company.
- Make sure all payment and return terms and conditions are clear and prominent.
The Future Shoppers Report surveyed over 5000 consumers across
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