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FRAUD PREVENTION FOR
AUTOMOTIVE PARTS AND
ACCESSORIES MARKET

The auto parts sector has been growing side-by-side with general online retail sales, but not everything is sweet!

Why is the industry heavily
targeted by fraudsters and often
marked as high-risk?

fraudsters follow the money

and, even though some lone individuals use stolen credit card data to purchase products for themselves, the vast majority of card-not-present (CNP) fraud comes from organized criminals intent on reselling products on a large scale.

High-value merchandise, which sometimes bridges multiple categories:

iconelectronics
electronics
iconapparel
apparel
iconaudiocomp
audio components
iconhobbyists
hobbyists
iconetc
etc

Combined with the industry popularity and the abundance of secondary marketplaces, middle markets, and aftermarkets:

iconauction
auctionsites
iconcraigslist
Craigslist
icononlinemktplaces
online marketplaces

provides easy turnaround for criminals to rapidly turn stolen items into easy cash, putting the industry in a fraud-rich landscape, an increasingly appealing target for CNP Fraud.

This may come as a surprise considering that the number and size of auto parts complicates resale logistics:

iconstorage
storage
iconhandling
handling
iconlisting
listing
iconshipping
shipping
iconetc2
etc

But fraudsters work in teams and selectively target certain types of auto parts.

The resell market

ResellMktDiagram
ResellMktDiagramVertical

Which items are
most targeted?

Fraudsters balance market demand with the ease of resale and the physical size of items. Below are the groups of automotive products most prone to fraud:

icontopsell
Items for the top-selling makes and models
iconsmallelectronics
Small electronic items and accessories
iconluxury
Luxury brands
icontires
WHEELS, RIMS, Tires
icontuneup
Tune-up parts

The typical fraudulent automotive parts order in 2014 had an average value of $1,700

Almost two times the $1,000

average fraudulent order for overall retail market.

How do I know if my business is facing fraud issues?

Fraud prevention is a numbers game, and the most important key performance indicators to watch are your chargeback rates and decline rates.

In general, if your domestic chargeback rate is above 0.25% and/or your decline rate is above 1.5%, you have a problem.

above 0,25% chargeback rate

and/or

above 1,5% decline rates

=

You have
a problem

chargeback rate what is this?

A merchant’s chargeback ratio is the number of chargebacks compared to overall transactions for a given month.

As the number of chargebacks against a retailer rises, so does the ratio.

chargeback rate how to calculate?

It’s important to note that each card issuer calculates this ratio slightly differentl

Visa, for instance, divides the current month’s number of chargebacks by the current month’s number of transactions. But MasterCard divides the current month’s number of chargebacks by the previous month’s number of transactions.

What should my business be looking for?

Merchants should look for good outcomes from the aspects below when considering their fraud prevention strategy:

  1.  Keep fraud rates under target thresholds
  2.  No negative impact on customers’ experiences
  3.  Right processes in place so peace of mind to focus on core business can be achieved
  4.  Maximization of approval rates and minimization of false-decline rates
  5.  Easiness to implement
  6.  Easiness to manage
  7.  Predictability of costs
  8.  Capacity to deal with sales peaks
  9.  Expertise to deal with changes in fraud patterns and data breaches.
  10.  Clarity and transparency

Fraud prevention strategies must be aligned with businesses goals. For this to happen, you need a solution that allows you to manage performance, not just features.

If you believe that you have opportunities to improve your business in any of these areas, ClearSale might be your partner of choice.

ClearSale has been providing comprehensive business solutions focused on delivering results that matter

Optimization of chargeback and approval rates with top-notch customer service

For more than 15 years in over 150 countries.

Customers continually tell us how ClearSale make their lives easier by increasing sales, controlling fraud, and improving customer experiences.

But don’t just take our word for it. See the results of focused expertise through real-life stories, from ClearSale clients like you:

About the online automotive parts and accessories market

Standard gasoline and hybrid engine automobiles are one of the most common modes of transportation worldwide, and with their use comes a lot of maintenance.

This makes automotive parts and accessories a steady industry, growing at the same rate as the overall retail industry.

Transaction amounts in the industry are usually in $100s and upwards, and the auto parts sector has been growing side-by-side with general online retail sales:

U.S. auto parts e-commerce revenue
(in billion U.S. dollars)

U.S. auto parts e-commerce revenue

Overall Retail e-commerce revenue
(in billion U.S. dollars)

Overall Retail e-commerce revenue

what our customers say

“A Must Have! Personable, professional, and very much appreciated. I would not operate a commercial on-line transactional business without ClearSale.”

“ClearSale allows us to focus on running a business instead of fighting fraud. We were skeptical, but ClearSale has proved themselves time and time again. We couldn’t be happier with their performance.”

“We decided to integrate ClearSale and the impact of adding was almost immediate. The commission is worth it, as more sales are approved.”

Be the leader to change your business

ClearSale solutions can be combined with your business knowledge so that you can maximize your focused expertise.
Increase sales while eliminating fraud and chargebacks before they happen.
ClearSale is the largest and only solution with the scale, flexibility, expertise, and experience to support any merchant anywhere.

17 years in business

99% Customer retention rate

150+countries accepting orders every day

3000+direct clients

endeavor
bbb
great-place
Hot100
trust
gartner

Contact us now and protect your revenue from fraud