According to Signifyd, a California firm dedicated to providing credit card security solutions for online retail merchants, transaction fraud caused the e-commerce sector losses equivalent to 4.06 percent of sales revenue in 2017, equivalent to $57 billion charged back to retailers.
While credit card fraud is a major problem, it is not the only the issue faced by online merchants these days; in some cases, rogue sellers and counterfeiters are also causing consternation in the e-commerce world.
In 2018, e-commerce entrepreneurs should be paying attention to the following security basics:
Respecting and maintaining the privacy of online shoppers has always been a cornerstone of e-commerce security. As an online merchant, you are expected to safeguard the information provided by customers and prevent accidental or malicious disclosure to third parties.
If you are running your own web store, you will be expected to implement security basics such as secure browsing, encryption and safe data storage. Privacy is easier to deal with when you sell goods on the third-party Amazon Marketplace because the online security infrastructure is provided by a company known to operate the most reliable cloud computing data centers in the world.
Authentication and Trust
Online shopping transactions depend on bilateral trust factors that need to be authenticated. Amazon shoppers, for example, create accounts that are based on personal and payment information; each time they sign into the Amazon website or shopping app, they authenticate their accounts by means of username/password credentials.
In turn, customers trust that the products listed under Amazon Standard Identification Numbers (ASINs) are real and that they will receive them in accordance to the purchase and delivery terms.
Online shoppers make their purchase decisions based on available information. On the Amazon Marketplace, shoppers evaluate products based on buyer reviews filed under each ASIN; these reviews, along with the ratings achieved by sellers, help shoppers create an image of the overall integrity of the merchants they choose to do business with.
The sum of the security basics mentioned thus far will give you an idea of brand reputation. Implementing solid e-commerce security measures will boost the reputation of your brand, thus ensuring that shoppers will continue looking for your product.
For this reason, you need to take additional steps to protect the good name of your brand, particularly in a platform such as the Amazon Marketplace, where your reputation can be harmed by the malicious actions of dishonest third-party sellers.
In a perfect e-commerce world, you would not have to worry about unauthorized sellers and counterfeiters hijacking your ASINs. Unfortunately, the Amazon Marketplace is far from perfect in this regard. ASIN hijackers tend to prey on independent sellers who introduce 10 or more new ASINs to Amazon, and they usually go after their best selling items.
On the Amazon Marketplace, brand protection starts with monitoring your ASINs to prevent hijacking, and this is something that you can achieve with Brandlox. To learn more about why you need to protect your ASINs and how Brandlox works, talk to our e-commerce consultants. Call 1-866-848-6072.