Cosmetics &
CNP Fraud

An infographic

With eCommerce expected to play a significant role in the growth of cosmetics sales over the next few years, online retailers need to ensure their CNP fraud review processes are optimized: that fraud is being filtered out without causing false declines or customer friction. This infographic provides insights into industry-specific shopping trends & CNP fraud patterns.

The mobile
make-up

Cosmetics shoppers tend to purchase via mobile more than consumers in other industries. It’s no surprise given that many are replenishing products and can make quick, no fuss purchases, on-the-go.

x Times more likely to be fraud

Don’t gloss over price

Cart values correlate directly with fraud rates: as order value rises, so does the risk of fraud.
Interestingly, a selection of lower priced items (that add to a high combined value) will usually be safer than a single item of the same value.

The variance from the average safe approval rate

Making scents of fraud

As with most cosmetics, the majority of fragrance sales are actually quite safe. But there is some risk of fraud, which is correlated with both price and popularity.

Mexico
-17.5%
Brazil
-9.4%
Germany
-7.2%
Singapore
-0.9%
France
-0.8%
Canada
-0.1%
India
0%
US
0.3%
Australia
+1%

Capturing global markets

With cross-border eCommerce cosmetic sales on the rise, retailers should resist the temptation to block orders from traditionally ‘risky’ countries (particularly given that many are major potential revenue sources). Rather, they should take note of fraud patterns to help review global orders with greater efficiency.

* The variance from the industry average safe approval rate per IP country

Holiday highlights

The weeks of Black Friday and Cyber Monday 2017 were extremely lucrative for online cosmetics retailers. There was also a large jump in cosmetics sales over the two weeks leading up to Mother’s Day. And with the fraud rate over these periods generally remaining static, the huge increase in volume should only convert to higher approval rates!

Holiday impact on sale volumes

Cosmetic shoppers love a bargain

One of the highest usage rates for promo codes across online industries is by cosmetics shoppers.

% Promo code use

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