In a few weeks, stores will be transformed into lively places for the most hectic time of the year: the end-of-year holidays.
Despite inflation concerns, online spending from October to December is expected to increase 7% to 9% in 2024 according to Signifyd, and holiday sales are expected to eventually return to pre-pandemic levels this year according to Deloitte. With e-commerce sites expected to rake in significant revenue, merchants must prepare to meet aggressive holiday e-commerce sales goals by eliminating any consumer frustration that could lead to abandonment, particularly at checkout points. key interactions where the potential for friction and fraud is high, such as account creation, login and checkout. The stores will therefore be ready for the rush, but what about e-commerce sites and digital channels? Here are three challenges that retailers will need to overcome to prepare their e-commerce site and digital channels for the most magical time of the year.
1. Meet high buyer expectations during peak periods
During peak season, the stakes for retailers are even higher. This time of year, shoppers are stressed about purchasing all the gifts on their list so they arrive on time. These Christmas or Black Friday shopping pressures will reduce their tolerance for friction in the customer experience. Any source of frustration, whether it’s a forgotten password or having to create an account at checkout, could cause a shopper to turn to another merchant who makes the more enjoyable holiday shopping experience.
2. Control the costs of fraud
E-commerce fraud is a costly reality. It cost retailers $42 billion in 2022, with an expected $48 billion through the end of 2023 according to Statista data, with this figure likely to continue to rise. Fraud is expensive at any time of year, but the holidays present a unique set of challenges due to increased traffic and changing consumer behavior. 64% of consumers believe their data is at greater risk during the peak shopping period, and indeed, 80% of consumers experience or are targeted by at least one form of fraud at this time of year.
In an age where shoppers are eager to spend but lack patience, avoiding false positives is essential: the fewer obstacles in front of the buyer, the better. Merchants must implement fraud prevention tools that work passively and accurately, identifying suspicious users without calling out every shopper who crosses the digital threshold, keeping fraud costs low without decreasing the joy of legitimate consumers.
3. Keep up with the high season
For many marketers, the fourth quarter can be the difference between hitting or missing sales goals. To make the most of every minute of the season, retailers must ensure shoppers can access their digital properties anytime, anywhere to make purchases. Indeed, if a customer cannot log in or checkout because the retailer cannot manage the number of visitors to its digital sites, it is highly likely that they will purchase from a retailer who can. in his place.
This crucial season is too short for retailers to waste time delivering poor shopping experiences that aren’t optimized to make it easy and safe for customers to buy. Unfortunately, retailers often face internal challenges that limit their ability to quickly evolve digital experiences based on performance or buyer behaviors. Custom development, complex integrations, and lack of testing prevent merchants from fully controlling the end-to-end shopping experience to maximize holiday sales.
So, by using customer identity at every point of interaction, merchants can learn about their customers to deliver personalized experiences that drive revenue while preventing fraud.
