New SupplyChainBrain Feature by Monica Eaton of Chargebacks911®
Retailers May be tempted to relax their security standards to try and retain as many buyers as possible. But as Chargebacks911 COO Monica Eaton explains in her new guest feature for SupplyChainBrain, that would be a big mistake.
According to the NRF, 40% of consumers expect free delivery of orders, and expect it within two days of purchase. Another considerable portion of buyers have abandoned orders before solely because that option wasn’t available. These expectations put a lot of pressure on sellers to streamline fulfillment. Some even compromise business best practices to shave-off extra time.
But, as Monica demonstrates, cutting corners can create more problems. Namely, an increase in fraudulent activity. “Minimizing friction can’t come at the price of compromising security,” Monica explains, “or you risk seeing criminal fraud rates spike.”
As Monica explains, it’s not simply about reducing friction wherever possible. Rather, the key is distinguishing between “positive” and “negative” friction.
“Positive friction is that which helps prevent fraudulent activity and other abuse, with little if any impact on the customer experience.” She contrasts this with negative friction, which she defines as placing “unnecessary obstacles between merchants and consumers.”
“Your supply chain features plenty of points of both positive and negative friction. Learning how to distinguish between the two allows you to move to faster fulfillment, while preserving security measures.”
