The festive season is upon us, with hundreds currently thinking about what presents they should get their family and friends. This time of year is usually accompanied by a shopping frenzy and with online marketplaces on an all time high, consumers can do all their gift-gathering online. However, the convenience of online shopping is not without its risks for both customers and businesses.
The landscape of commerce has undergone significant transformation in recent times, particularly with the accelerated adoption of online shopping, a trend further propelled by the recent pandemic. Thousands of businesses, either as extensions of their natural shops or as exclusively digital entities, have embraced virtual marketplaces. Undoubtedly, making online shopping part of our contemporary lifestyles. Nevertheless, the ease of shopping online comes with potential dangers.
There is a tendency to think that when shopping online, only customers are exposed to risk and threats. For example, by receiving deceptive emails promising irresistible bargains, or through counterfeit websites designed to deceive unsuspecting consumers. However, businesses are also exposed to high risk when people are not who they claim to be and intentions aren’t as they seem.
In response to escalating threats, it becomes imperative for businesses to explore robust mechanisms that can fortify and secure online platforms. This is incremental both from a legal perspective, but also for the smooth functioning of business. Marketplaces have an obligation towards their consumers to provide and maintain a secure shopping environment where they can make their online purchases without fear.
Promoting a Safe Online Shopping Environment
Detecting non legitimate online shopping websites, counterfeit accounts, and unauthorized credit card usage is a concern for both consumers and businesses. It is crucial to stay well-informed about essential features and tools that verify the legitimacy of online shopping platforms to avoid finding oneself in harms way.
As such, there are several steps online marketplaces can take in order to create and maintain a safe online shopping environment. Here are our top 3:
1. Making the most of social media platforms
In this day and age, before making any purchases at all, consumers are wired to look up the company online and across social media platforms.
This means that it is now highly necessary to maintain an active online presence in order to create a brand image that puts the customer at ease. Beyond portraying brand values, a far more important aspect of putting the customer at ease is showing the legitimacy of the business.
Additional ways of showing your customers that your online shop is legitimate can be as simple as having a professionally designed website with clear pictures and information. For example, easy access to contact information, customer complaints, while also clearly depicting reputable external payment partners and the overall security of the website.
Furthermore, using popular advertising platforms to promote your online marketplace can also help influence the comfort with which consumers carry out their holiday shopping online.
Thus, making the most of social media to establish the credibility of your online shop or marketplace is vital. However, there is more to it.
2. Leveraging digital tools for secure shopping
Presenting as a credible online marketplace is the tip of the iceberg. Underneath is an intricate module of data protection, cybersecurity and more, used to foster a safe environment for all visiting customers.
Among the tools in this endeavor you should also find Know Your Customer (KYC) processes. KYC refers to a multifaceted approach, crucial to verifying the identities of both the individuals engaging in online shopping, as well as the vendors of the online shop, and protecting against financial crime activities.
Having a holistic KYC solution ensures that all personal details are true and accurate. Biometric scans, such as photo proof and ID document matching, confirm that the person is who they claim to be. Additionally, where marketplaces are concerned, this ensures that the vendors selling on the platform are all verified and credible sellers.
Businesses must understand that the risks and dangers may arise in many forms. Not only affecting the customers but also putting the businesses themselves in dangers way. For example, customers may use their web-shop to launder money or make purchases using somebody else’s card details.
Those that choose to implement digital KYC processes can prevent such illicit activities and secure their platforms from any kind of financial crime activity. Thus reducing the risk of fraudsters using stolen identities to make unauthorized transactions and illegitimate vendors putting consumers in danger.
3. Fostering a community to educate consumers
As fraud reaches an all-time high during the festive period, it is necessary to educate consumers. Shopping platforms can take advantage of their positions in the space to provide educational hubs where they can share information regarding consumer protection. This could take the form of a ‘consumer protection resources’ page for ongoing access, or an informative blog post when approaching an especially risky time of the year.
Simple things like promoting resources that can help your customers stay protected can make a great difference in tackling financial crime and fraud. For example, the Take Five Campaign provides straightforward, impartial advice that aims to prevent email, phone-based and online fraud.
By helping consumers create habits, such as taking a moment to stop and challenge the credibility of the situation, you are able to protect them from financial crime and fraud.
Such commitment to staying informed and implementing effective security and compliance measures is essential for a positive and trustworthy online shopping experience. Safeguarding against non-legitimate online shopping experiences requires a proactive approach and, as such, KYC plays a vital role in this process.
By maintaining a credible online shopping environment overall, this helps to protect both business partners and customers while they dive into their holiday shopping.
We wish you happy holidays and safe shopping!
