Relying on stretched budgets and small staffs, start-up ecommerce companies usually struggle in their first year to balance the workload of inventory levels, web development and promotions. It may seem like a great opportunity for entrepreneurs and investors, but it’s not all fun and cha-ching! Young companies will frequently offer starter credit to gain popularity and traction and this puts them at risk. For overwhelmed and less-than-experienced ecommerce companies, resources like Sift Science are a lifesaver.
Sift Science is a new, cloud-based service that weeds out fraudulent or inauthentic accounts and transactions. Take for example the auction site Listia: they offer an eBay-like platform for users to buy and sell goods using site credit. When you sign up for the first time, you automatically receive 1000 free credits. This means you can potentially use multiple email accounts to sign up for unlimited free credit to Listia’s auctions.
Here’s where Sift Science comes in. They comb through every account and assign each user a “fraud score.” Accounts that are deemed inauthentic are highlighted, tracked or banned. Even better, the algorithms Sift Science is based on can adapt to new schemes as they emerge. It learns – but only to an extent. If a company’s system is outdated or doesn’t have certain capabilities, Sift Science is useless. So while this service is a great safety net for most forms of fraud, businesses need to remain smart and vigilant to protect themselves.
If you’re new to ecommerce and need some direction, check out our 3 part guide on How to Start an Online Store:
Part 1: Doing Your Research
Part 2: Research Keywords and Costs
Part 3: Competitive Research
Our engineering team can optimize your site to keep your users and security features up to speed. Whether you’re a newbie to online selling or are a seasoned pro, the custom ecommerce services at Ripen can take your business to the next level.