Fraud’s Financial Impact on the Online Retail Market
Online merchants are spending an estimated 8% of their income on measures designed to reduce fraud. This information comes from a recent large survey of online retailers conducted by Javelin Strategy and Research LLC. The survey included 497 large online retailers across the United States that have been in business for at least 12 months as of the time of the survey. Each of these retailers had at least $1 million in annual revenue.
How the Type of Retailer Impacts Fraud Expenses
In this survey, 155 of the retailers sold physical items, 142 sold digital items or services and 200 sold both physical and digital items. The median annual sales of these retailers was $136.1 million.