Published August 4, 2017

The Goal

  • Reduce the number of number of chargebacks and associated fees on a new merchant’s storefront.

The Approach

  • Provided easy API integration between the owner’s storefront and NS8 Complete Storefront Protection.
  • Applied our EQ8 scoring system for intelligent filtering of their site’s users for fraud pattern analysis.
  • Scored advertising campaigns for a clear indication of bot traffic and capacity to reach end customers.

The Results

  • Reduced their bot and hidden traffic rate from 36% down to 6%.
  • Lowered the numbers of chargebacks down to only one in the last 3 months.
  • Helped them reallocate revenue from two poorly performing ad campaigns so that more of the budget was spent targeting real users.

Wudly.co had only been operating an online storefront for a couple of months, but with high chargeback rates and a poorly performing ad campaign, malicious traffic was proving to be a big problem for their business. They wanted to find an easy-to-install, easy-to-use fraud prevention solution that would integrate quickly with their online platform and start saving them money right away.

In order to make this goal a reality, their team needed to identify a major problem many modern businesses have to deal with today. Last year, there was a grand total of over 15 million chargebacks, where customers would demand their bank return their money thanks to a stolen credit card, a lost delivery, or even a common case of buyer’s remorse. In total, this cost eCommerce merchants an estimated $6 billion in lost revenue. While not all chargebacks are preventable, filtering a storefront’s traffic is an important step to identify certain patterns and minimize fraudulent purchases.

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Case Study Video

Our chargeback rate was getting out of control, and on top of the revenue we were losing each month, we were getting hit with hundreds dollars in fees. We were fairly new to all of this, and these problems just seemed to come out of nowhere.

- James Cho, Co-Owner of Wudly.co

Wudly realized that by utilizing NS8’s Complete Storefront Protection solution, they would be able to filter all their site’s traffic and identify certain patterns that are commonplace among fraudulent users. Firstly, the EQ8 scoring system helped to ensure a rapid quarantine of suspicious orders, displaying any potential red flags in the product dashboard. For example, if a customer was using a stolen credit card, indicators like a mismatched billing and shipping address or other purchasing discrepancies might be a potential indicator for fraud. Complete Storefront Protection gave them the ability to rapidly assess this order in manual review and request SMS verification before the order was complete.

We installed [NS8 Complete Storefront Protection], and we quickly saw that there was way more to this problem than we realized. The dashboard showed that not only were losing money to chargebacks and credit card fraud, but that our advertising was just being wasted feeding bots instead of real customers.

- Jason Thomas, Co-Owner of Wudly.co

As well as protecting them from fraudulent traffic by reducing chargebacks, NS8 Complete Storefront Protection gave them the ability to filter through their ad campaigns to ensure that revenue was only being spent on reaching real customers. This not only enabled Wudly to avoid remarketing to bots, but it also led to a big shift in focus for their ongoing marketing campaigns thanks to better metrics on their real users.

Now whenever their business is paying money to display a pay-to-click ad, NS8 Complete Storefront blocks bots from “viewing” the ads that they are paying to display. Scoring the ad campaigns to assess if they’re simply subject to malicious traffic ensures that any problematic sources can be easily filtered, and the combined savings of the measures meant that substantial revenue can be re-allocated for more effective marketing in the future. All of this was possible thanks to the seamless integration between Complete Storefront Protection and their store’s platform, giving them an instant view of site activity via the review dashboard.

With their help, we have also made a couple of simple changes to how we are purchasing our ads. And we have reduced our bot and hidden traffic rate from 36% down to 6%. That is money in our pockets.

- James Cho, Co-Owner of Wudly.co

These approaches have helped deliver some substantial results. By using Complete Storefront Protection, Wudly has reduced their bot and hidden traffic rate from 36% to 6%, which is a big improvement. Over the last 3 months, they have also had only a single chargeback, which has led to substantial gains in revenue after filtering out fraudulent users and other suspicious traffic.

With Complete Storefront Protection scoring and filtering their ad campaigns, Wudly was also able to boost their detection of fake traffic and adjust their advertising spend to avoid remarketing to bots. Based on these outcomes, Wudly plans to continue utilizing Complete Storefront Protection to actively monitor all their site’s users and further develop the metrics we provide into a much more tailored approach for future marketing efforts.

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