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Online Fraud Is Twice As High For Luxury Fashion Vs. Basic Apparel

Higher price points for luxury fashion can mean higher margins, but also could lead to e-Commerce fraud: a rate of 4.81% compared to just 2% for mass market apparel. The good news is that the vast majority of online sales in the $85 billion global fashion market are valid, according to this infographic from Riskified.

To keep tabs on potentially fraudulent transactions, retailers should monitor the number of items in shoppers’ carts: Rates jump from 10.4% with five-item carts to 49.6% with six items. And luxury fashion is not the only segment at risk for fraud. Take note of the items most commonly targeted by fraudsters:

  • Watches (9.9%);
  • Sneakers (5.7%); and
  • Jeans (3.2%).

Higher price points for luxury fashion can mean higher margins, but also could lead to e-Commerce fraud: a rate of 4.81% compared to just 2% for mass market apparel. The good news is that the vast majority of online sales in the $85 billion global fashion market are valid, according to this infographic from Riskified.

To keep tabs on potentially fraudulent transactions, retailers should monitor the number of items in shoppers’ carts: Rates jump from 10.4% with five-item carts to 49.6% with six items. And luxury fashion is not the only segment at risk for fraud. Take note of the items most commonly targeted by fraudsters:

  • Watches (9.9%);
  • Sneakers (5.7%); and
  • Jeans (3.2%).

[click to expand]

IG Riskified 4.19.16

Source: Riskified

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