| | Payment & Financing Services

Black Friday: The day of e-commerce – and the right business partner

Black Friday not only affects the ecommerce merchants, but also the financial services and partners behind them. High turnover means a high number of accounting processes, return management and professional fraud and risk management.

Online shops and numerous stores are once again attracting customers with super special offers. The bargain week of the year is about to begin with its climax today on the 23 November: Black Friday. I have been watching the trend from my position as Head of Account Management retail/ecommerce for several years and for me it is quite clear: We Germans are almost as good as Americans when it comes to buying bargains online, just before Christmas.

Because 96.2% of Germans between the ages of 16 and 24 know, Black Friday and 79% are buying products on that day. In addition, other age groups are also very excited about the international discount day. 82% of 25 to 34-year-olds and 73% of 45 to 54-year-olds in Germany use the day or the whole weekend, starting with Black Friday and ending with Cyber ​​Monday. Above all, cosmetics, fashion and food are the most popular categories in Germany.

I just caught myself again by ordering the next Echo Dot a few days ago, at 40% discount, already one week before Black Friday, no wonder, right?

In addition to the shopping experience for customers and the (presumably) big sales for e-commerce retailers, the Black Friday weekend has a very high and different impact on product and service providers: Last year, as a financial service provider, we recorded a record number of transactions for our clients. I am curious to see if this record will be broken this year – forecasts on purchasing behaviour already suggest this. The e-commerce industry, received 154% more requests last year, and on Black Friday, the industry gained about 254%.

A company must first master this mass of transactions, returns and booking cycles or they have a suitable partner on board.

So it’s not just a question of offering – it’s also a matter of the right handling

Because what resonates is the clean handling and processing of data, accounting processes and return management in order to avoid long waiting times for chargebacks on side of the end-customers and to ensure customer loyalty beyond the Black Friday, because the end-customer has never been more demanding than today.

In addition, the popular payment method “purchase on account” or “payment after delivery” increases the risk for merchants to stick on the value of the goods sold due to fraud.  To avoid this, it is so important to have a partner who takes care of the integrated risk management and fraud processes.

My experience has shown that the number of fraud cases and losses increases exponentially with the number of offers – because even fraudsters are using the Black Friday and the high number of communication and personal data on the internet to boost their own business. Official statistics, however, are not available.

Now we have to wait for the weekend. I am very curious to see whether we will break the record for transactions this year and – how many fraudulent actions we prevent as a financial services provider and expert for fraud and risk management.

*Statista, September 2017

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