It might come as a surprise, but larger internet retailers are more likely to become victims of fraud, which leads to significant losses in revenue for companies.

Internet Retailer reports that research by LexisNexis found that ecommerce retailers that have more than $50 million in annual sales are losing an average of $219 for each fraudulent transaction, compared to the $120 that smaller online merchants lose. Bigger internet retailers are seeing losses of 0.60 percent of their revenue to fraud, while all merchants that were analyzed lost 0.54 percent. The source states that these companies may be more prone to fraudulent transactions due to the fact that they are less likely to flag items and purchases that carry higher prices.

Mobile commerce is also resulting in losses for online merchants. According to Upstart Business Journal, the study from LexisNexis revealed that mobile retailers pay an average of $2.83 for every $1 in fraudulent transactions. This is an increase from the average of $2 in 2011. These instances of fraud include bounced checks, stolen merchandise and requests for refunds. 

This entry was posted by Retail Pro on Friday, September 28th, 2012 at 11:37 am .