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How common is online shopping in 2022? Even without the actual numbers, it’s clear that there has been an amazing increase in the number of digital shoppers in recent years. Thanks to the global pandemic, some businesses had to adapt and drastically change their strategies. With easy transactions, user-friendly experiences, and the absolute convenience that eCommerce offers, many agree that the digital sphere for shopping has a fair share of benefits.
The main question and challenges arise regarding the security factor. That’s why eCommerce industry players are looking for new ways to secure their businesses and prevent fraudulent activities. Of course, at the same time, one of the key goals for eCommerce remains revenue growth. This is where identity verification comes into play.
Continue reading the whole article to find out more about the eCommerce landscape and how modern ID verification services can benefit your business.
How to Boost Ecommerce Revenue With Customer Verification?
Improving Your Reputation
Checking your customers and reviewing their ID documents helps improve your company’s reputation. Not only that but staying compliant with the ever-changing regulatory requirements saves your eCommerce business from huge non-compliance fines. Generally, if you’re an eComm player, you most likely know that fraud possibilities take up a huge part of your security strategy.
Finding ways to combat online crime and fake identities is challenging. For this reason, ID verification and the fact that you ensure that your business clients are real help enhance the overall reputation. Just think about it: payment fraud, promo fraud, account takeover fraud and identity theft are the common fraud types that aren’t going anywhere soon.
Helping Detect Fraud
There’s always a risk of financial fraud when it comes to businesses with money flowing in. For this reason, financial specialists argue that transaction monitoring and customer identity verification are the top components in the battle against various fraud types. Modern risk-based security and fraud prevention models include authentication methods, requiring eCommerce companies to check on users.
That means they verify their identities before allowing them to purchase and add sensitive data, such as credit card information. The importance of ID verification can be used as an argument when we talk about the rising number of fraud reports.
For example, the Federal Trade Commission (FTC) recently reported that 2.8 million fraud reports were submitted last year, and two main reasons why people had to submit the claims were due to online shopping scams and imposter scams.
Let’s take a more detailed look into imposter scams. A scammer can pretend to be another well-known business. Their goal is to ask for money, which makes them an “imposter”. In the meantime, an online shopping scam can occur when an online sale channels ships fake items. An alternative scenario is when they do not ship anything at all, even though the customer makes the payment. All in all, such crimes can be avoided if the companies authenticate the identities of each customer.
Recognizing Leads Easier
Identity verification can be used for lead verification. Specific leads have a detailed history that’s linked with an eCommerce brand. Such leads have special attributes that show valuable data. Recognizing and authenticating such customers helps eCommerce companies provide them with special offers and deals. By identifying and verifying entities, businesses can target interactions, ultimately driving more conversions.
Saving Time for Customers
Numerous online shopping systems and complex verification processes increase cart abandonment rates. Let’s say that a customer wants to buy an item on your eCommerce site. They need to enter their name and address, and on top of that, verify their identity by uploading a photo of their passport. It looks like a hassle that’s definitely not acceptable for a huge audience.
Despite that, with a quick, few-step AI-powered Identity Verification software, customers can authenticate themselves once, eliminating the need to re-enter their personal details every time they want to shop on your site again. This way, customers can save time, making their shopping experience a pleasant journey. On top of that, chances are that happy customers are more likely to become loyal, long-term clients. That’s why it’s safe to say that every detail matters.
Enabling Remote Hiring
Having many procedures digitized saves costs for any business. So why not utilize identity verification for your eCommerce business employees? Having a digital identity verification process means that you can manage your staff remotely.
Now, with various authentication methods becoming more common, ID verification solutions are used in the Human resources industry as well. If you want to onboard new staff members remotely, especially those who aren’t planning to work at the office all the time, think of the convenience that remote identity verification brings to the table.
To Wrap it Up
It’s no secret that almost every online retailer’s goal is to improve profitability. Despite that, it’s important to stress that it’s almost impossible to have your revenue stream going without proper security measures. Very often, merchants face challenges due to potential fraud threats. Stealing identities, forging documents, or using stolen credit cards happens more often than you think. That’s why having proper identity verification as an extra layer of protection in eCommerce is vital.