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