One of the outcomes of the pandemic that we’re still experiencing in 2022 is a dramatic rise in online sales and eCommerce. Businesses are moving to online selling platforms in droves, marketing and shipping everything from grocery products to farm equipment. This opportunity has opened many doors for attracting new customers and increasing sales revenue. But the rising online market has had its drawbacks. Facing a worldwide audience has exposed businesses of all sizes to certain risks. Whether you’re running the Amazons of the world or you’re a budding online merchant, protecting our online marketplace is crucial.
Most Common Risks for Online Retailers 2022
Regardless if you’re a home cook crafting custom sauces to sell online, or a large commercial online business, it’s vital to know about the risks you could face when conducting eCommerce transactions. The risks eCommerce retail businesses face most often include credit card and financial issues including customer disputes, fraud, theft of account information on your site, account information theft by hackers, and chargebacks.
4 Tips for Reducing Online Fraud
By following these tips, you can safeguard your online business against these risks and protect your bottom line. Your best line of defense is through your eCommerce authentication systems and processes which utilize tools and controls to verify the credit card cardholder’s identity and the validity of the transaction.
Fraud screening: This provides you, as the merchant, with risk scores for each transaction by examining past transactions associated with each particular credit card or payment method.
Address verification: This is a service that matches the billing address associated with a credit card with the actual card issuer.
Card verification: Requiring customers to provide the value numbers printed on the back of their credit card can be an indicator of whether the customer is actually in possession of their card and ensures that the card is not fraudulent.
Chargeback management: Reduce your financial responsibility and loss that occur as a result of fraud, authorization problems, processing issues, and customer disputes.
Best Insurance for Online Retail – Personal and Business
Did you know that one in every four retail insurance claims are for eCommerce businesses? If you’re an online retailer, it’s important to make sure that you’re adequately covered against potential online credit card fraud risks. You don’t have to own a business in order to protect your online sales! The Nowell Agency has a few tips to help you choose the right insurance for your eCommerce business. First, consider what type of insurance you need. Your business may benefit from product liability insurance, cyber insurance, or shipping insurance, for instance. Make sure to choose an insurance policy that covers all the risks associated with your particular business. Secondly, make sure that you read the policy documents carefully before signing any insurance policy. This will ensure that you understand the coverage and benefits provided by the policy, as well as any potential gaps in your plan. Most importantly, contact a qualified and experienced insurance agent to walk you through the ins and outs of what insurance products you need for an online retail store. The Nowell Agency is here for you! Give us a call today and learn how we can help protect your online retail business!
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The reality of doing business is that your organization is going to face risks. The dangers that threaten your livelihood can result in your business being held accountable for legal and financial responsibilities that can quickly become overwhelming. As a result, many business owners purchase insurance policies for protection against the fallout of such losses. […]