As Bargain Hunters Make Online Marketplaces as Popular as Brick and Mortar Stores, Worldpay from FIS Shares Tips to Keep Marketplace Merchants Safe from Fraud this Holiday Season
December 07 2023 - 3:00AM
Business Wire
Key facts
- New research from Worldpay from FIS found online marketplaces
are now as popular as physical stores.
- The UK (73 percent) and the US (62 percent) have the highest
rate of bargain hunters.
- Worldpay from FIS shares tips with marketplace sellers to keep
them safe from fraud during the holidays.
Macro-economic headwinds across the globe have resulted in more
people shopping for bargains, which has led to the acceleration of
online marketplace adoption. This is according to new research from
Worldpay from FIS, the merchant solutions business of global
financial technology leader FIS® (NYSE: FIS). As online
marketplaces grow in popularity and with instances of fraud and
disputes typically increasing during the holiday season, merchants
need to be extra vigilant this year to minimize the risk of
negative business impact.
Worldpay’s new Future Shoppers Report found online marketplaces
are now as popular as shopping in physical stores, with 77 percent
of consumers having shopped through an online marketplace in the
last 12 months, compared to 78 percent in a physical store and 51
percent on the stores’ branded websites. Gen X is leading the way
with the adoption of marketplaces, with 81 percent of those aged
36-58 stating they had used an online marketplace in the past 12
months.
Maria Prados, Worldpay from FIS retail expert said: “With the
rise of cost-conscious shoppers, consumers are now finding online
marketplaces meet their needs better than conventional eCommerce
sites which only offer products from a single retailer. It’s not
just competitive prices that marketplaces offer, but the
convenience and a more seamless experience which is driving their
growth.”
While online marketplaces have become a mainstream shopping
channel, consumers still have a desire to be loyal to the brands
they love. When asked if all things were the same (price, shipping
speed, etc), almost 40 percent of consumers indicated they would
prefer to shop directly with a brand, with just 15 percent
indicating they would shop through a marketplace.
“With consumers set to be more mindful of how they spend this
holiday season, merchants need to consider how they can replicate
the marketplace experience within their own online offering,”
Prados added. “Curating a marketplace experience as part of brand
websites and pairing their own products with brands that have
similar values is already being done successfully by a number of
retailers.”
“People still want the holiday season to be special, they’re
just changing how they create it. While it’s now fashionable to be
frugal, consumers won’t accept a reduced experience. Now more than
ever, merchants need to consider how they show up across multiple
online channels, offering a wider variety of shopping options.”
The growing popularity of online marketplaces combined with the
traditional holiday trends of increased fraud and goods dispute
chargebacks, means that new marketplace sellers and brick and
mortar merchants need to be extra vigilant to ensure safe selling
and shopping over the holiday season.
To keep merchants safe from fraud and decrease the volume of
chargebacks, Worldpay from FIS offers the following top tips:
- Use solutions such as 3DS (3D secure solution) to ensure
ecommerce transactions are fully secure.
- Provide excellent customer service. Ensure you keep customers
updated on the status of orders, including delivery progress and
tracking. Be honest up front if there are likely to be delays and
make it easy for customers to contact you so any issues can be
resolved.
- Require signed proof of delivery to the agreed upon delivery
address and use a reputable and reliable delivery company.
- Make sure all payment and return terms and conditions are clear
and prominent.
The Future Shoppers Report surveyed over 5000 consumers across
France, Germany, UK, US and China to get to know them better.
Meeting customers’ needs is no longer just about understanding what
they feel about price and product, but about building shopping
environments through which they’re catered for as individuals with
lots on their minds and substantial experience in new technologies
under their belts.
About FIS
FIS is a leading provider of technology solutions for financial
institutions and businesses of all sizes and across any industry
globally. We enable the movement of commerce by unlocking the
financial technology that powers the world’s economy. Our employees
are dedicated to advancing the way the world pays, banks and
invests through our trusted innovation, system performance and
flexible architecture. We help our clients use technology in
innovative ways to solve business-critical challenges and deliver
superior experiences for their customers. Headquartered in
Jacksonville, Florida, FIS is a member of the Fortune 500® and the
Standard & Poor’s 500® Index. To learn more, visit
www.fisglobal.com. Follow FIS on Facebook, LinkedIn and Twitter
(@FISGlobal).
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version on businesswire.com: https://www.businesswire.com/news/home/20231207644070/en/
For More Information Kim Snider, 904.438.6278 Senior Vice
President FIS Global Marketing and Communications
kim.snider@fisglobal.com
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