According to a report from US-based payment security vendor Riskified, fashion traders are hesitant in selling products through online medium, particularly beyond domestic borders. This is somehow hampering their profitability in business by not tapping on potential outside markets.
“The overcorrection on fraud from a retailer’s perspective, especially for mid-sized and small businesses, means they’re leaving huge market expansion opportunities on the table. They’re told a certain foreign market is risky, so they shut down the borders,” avers Andy Freedman, Riskified’s chief marketing officer, adding, “Online and off, there are US $ 118 billion worth of legitimate transactions being declined. E-commerce and mobile commerce is US $ 9 billion of that.”
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In its report, Riskified mentions that most of the retailers aren’t having appropriate systems in place to handle international orders and generate revenue out of them. Moreover, it also states that orders of luxury fashion products made through Chinese credit cards and shipped to the US are the safest, with only 1.04 per cent of orders being fraudulent, and orders paid with a Chinese credit card and transported outside of China are a little dodgier with a fraud rate of 1.58 per cent. Riskified observes that there’s a ‘misapprehension’ that orders placed online are fraudulent if they’re paid with credit cards issued outside the country where the consumer is shopping.
With the e-commerce industry expanding like never before, it is of utmost importance to put correct channels in place to capitalize on potential markets like Vietnam, Indonesia and even India. The ‘cross-border’ sales, if handled properly, are capable to take earrings of fashion merchants to new heights.