eCommerce: Preventing Chargeback

Preventing Chargeback to Increase Profits for your Online Store First, a little background: Your online business sells a product, and your Dropshipper Supplier ships it out to your customers. Simple? Let's See: A customer places an order in your You, the merchant, online store download the order onto Excel Order You send the order to the supplier The supplier confirms the inventory and prepares an Excel spreadsheet Order Excel The Supplier sends you a spreadsheet with the Order confirmation You contact the shipping Excel company Order The customer contacts you and requests the tracking number or you update the customer yourself Both you and the customer have to periodically check the shipping status "hey! what is my tracking number ?" Shipping company delivers the product to the client Shipping company sends a you a message letting you know it was delivered successfully DS You finally confirm with the customer via email that the item was successfully received What can possibly go wrong? Issues of human error: 1. The merchant writes the products details or the customer address incorrectly 2. The supplier sends the item, but the customer has changed the order after it's been shipped 3. Supplier sends incorrect details to the shipping company 4. Shipping company fails to honor the customer's requested arrival date 5. Tracking number is given to you from the supplier, and then from the supplier to the customer Currently, a whopping 17% orders are met with product shipping mistakes! 17% 14% In most of these cases, the customer will submit a chargeback, which equals a 14% chargeback rate for the merchant. Payment providers only allow a mere 2% Chargeback per month, and if the merchant goes over this amount, the payment provider will block all incoming payments that month. In some cases, the merchant will never see 2% this money again. 50% of online businesses that end up closing, do so because of this issue. How can IZZONET make a difference ? Automated Dropshipper Management System Customer places a store order Supplier receives an automated message The supplier sees the order in the system, prints a detailed label and passes it over to the shipping provider about the order Order closed (74 8457 As the customer receives the item, Both you and the customer automatically receive a package tracking Both you and the customer, the order is receive an automated email automatically closed in your system message about the item having been shipped number and can follow its status If the product itself, as well as the customer service was upheld to acceptable standards, the chances of customer dissatisfaction (and chargeback) are reduced to 5%. י" only 5%! + As you already know now, payment providers only allow a 2% chargeback rate. We're still in trouble at this point :( 5% 2% What are the reasons for this remaining 5%? 1% out of the 5% consist of the following reasons: Customer dissatisfaction with the service or the product Discrepancy between the merchant name in the credit card/bank statement and the name of the store Merchant's customer service information isn't readily available In order to decrease the occurrence of these issues て 1 It's necessary to maintain a high level of customer service, and to avoid low-quality products. 2 Ensure that name on the charge matches the store's name. If this isn't the case, let the customer know about this discrepancy. We recommend that in order to prevent chargeback, 3. merchants return the payment to any complaining customer even if they don't ask for it. The remaining 4% chargeback rate is FROM FRAUD ALONE. 4% Some red flags that may indicate fraud: The order is way more than the average sale Sale The customer has yet to receive the first Order order, but has already proceeded to make an additional order Billing address and shipping address are different Multiple orders shipped to the same address, but purchased with different credit cards *Make sure to research updated public information detailing the chargeback rates by country In the event of any of these situations, it's highly recommended to pick up the phone and get in touch directly with the customer to remove any doubt. Ways to prevent loss from chargback in an online business: A quality product, and good customer service equals Satisfied customers Use an Automated Dropshipper Management System. It can prevent Chargeback by 15% and saves manpower Refund payments to complaining customers before they have a chance to make a chargeback Work with more than one payment provider, in order to divide the sales, and prevent getting your incoming funds blocked Watch out for any red flags that may indicate fraud. Whenever in doubt, it's always best to speak to the customer in person to clear up any ambiguities IZZONET is the only online store platform that provides its customers with a full range of tools to prevent losses and increase profit. *The platform itself was created by people with a tremendous amount of practical knowledge in building and managing online businesses. Just a couple of tools exclusive to IZZONET eCommers platform: Automated fraud prevention and chargeback tools - Automatic integration with drop shippers www.izzonet.com Preventing Chargeback to Increase Profits for your Online Store First, a little background: Your online business sells a product, and your Dropshipper Supplier ships it out to your customers. Simple? Let's See: A customer places an order in your You, the merchant, online store download the order onto Excel Order You send the order to the supplier The supplier confirms the inventory and prepares an Excel spreadsheet Order Excel The Supplier sends you a spreadsheet with the Order confirmation You contact the shipping Excel company Order The customer contacts you and requests the tracking number or you update the customer yourself Both you and the customer have to periodically check the shipping status "hey! what is my tracking number ?" Shipping company delivers the product to the client Shipping company sends a you a message letting you know it was delivered successfully DS You finally confirm with the customer via email that the item was successfully received What can possibly go wrong? Issues of human error: 1. The merchant writes the products details or the customer address incorrectly 2. The supplier sends the item, but the customer has changed the order after it's been shipped 3. Supplier sends incorrect details to the shipping company 4. Shipping company fails to honor the customer's requested arrival date 5. Tracking number is given to you from the supplier, and then from the supplier to the customer Currently, a whopping 17% orders are met with product shipping mistakes! 17% 14% In most of these cases, the customer will submit a chargeback, which equals a 14% chargeback rate for the merchant. Payment providers only allow a mere 2% Chargeback per month, and if the merchant goes over this amount, the payment provider will block all incoming payments that month. In some cases, the merchant will never see 2% this money again. 50% of online businesses that end up closing, do so because of this issue. How can IZZONET make a difference ? Automated Dropshipper Management System Customer places a store order Supplier receives an automated message The supplier sees the order in the system, prints a detailed label and passes it over to the shipping provider about the order Order closed (74 8457 As the customer receives the item, Both you and the customer automatically receive a package tracking Both you and the customer, the order is receive an automated email automatically closed in your system message about the item having been shipped number and can follow its status If the product itself, as well as the customer service was upheld to acceptable standards, the chances of customer dissatisfaction (and chargeback) are reduced to 5%. י" only 5%! + As you already know now, payment providers only allow a 2% chargeback rate. We're still in trouble at this point :( 5% 2% What are the reasons for this remaining 5%? 1% out of the 5% consist of the following reasons: Customer dissatisfaction with the service or the product Discrepancy between the merchant name in the credit card/bank statement and the name of the store Merchant's customer service information isn't readily available In order to decrease the occurrence of these issues て 1 It's necessary to maintain a high level of customer service, and to avoid low-quality products. 2 Ensure that name on the charge matches the store's name. If this isn't the case, let the customer know about this discrepancy. We recommend that in order to prevent chargeback, 3. merchants return the payment to any complaining customer even if they don't ask for it. The remaining 4% chargeback rate is FROM FRAUD ALONE. 4% Some red flags that may indicate fraud: The order is way more than the average sale Sale The customer has yet to receive the first Order order, but has already proceeded to make an additional order Billing address and shipping address are different Multiple orders shipped to the same address, but purchased with different credit cards *Make sure to research updated public information detailing the chargeback rates by country In the event of any of these situations, it's highly recommended to pick up the phone and get in touch directly with the customer to remove any doubt. Ways to prevent loss from chargback in an online business: A quality product, and good customer service equals Satisfied customers Use an Automated Dropshipper Management System. It can prevent Chargeback by 15% and saves manpower Refund payments to complaining customers before they have a chance to make a chargeback Work with more than one payment provider, in order to divide the sales, and prevent getting your incoming funds blocked Watch out for any red flags that may indicate fraud. Whenever in doubt, it's always best to speak to the customer in person to clear up any ambiguities IZZONET is the only online store platform that provides its customers with a full range of tools to prevent losses and increase profit. *The platform itself was created by people with a tremendous amount of practical knowledge in building and managing online businesses. Just a couple of tools exclusive to IZZONET eCommers platform: Automated fraud prevention and chargeback tools - Automatic integration with drop shippers www.izzonet.com