The role of eCommerce software in loss prevention
Given the cost-conscious nature of modern consumers, making a profit can be extraordinarily challenging as retailers try to set prices low enough to interest customers but high enough to earn revenue. When theft and fraud are introduced into the mix, profit forecasts can be completely thrown off course and merchants may find themselves unexpectedly losing money.
Loss prevention has always been an issue, particularly in brick-and-mortar stores where consumers can swap price tags or simply steal goods.
However, organized retail crime and individual theft can still occur online as well. For instance, people abuse errors in online coupon codes that allow them to redeem discounts infinitely or if they are more tech-savy, they can exploit other bugs on your site.
Fortunately, retailers can utilize new eCommerce software and technology to help them identify patterns and trends they might not otherwise notice. Going back to the previous example, if a coupon code was being exploited, a solution such as SalesWarp or your shopping cart software (if it has the functionality) can be used to help you track and identify the discounts being redeemed to make sure they are legitimate, and how the bottom line is being affected.
“One other area where retailers are stepping up is deploying business analytics programs that focus on point of sale and returns …” Rosamaria Sostilio, senior vice president of asset protection at Saks Incorporated, told the National Retail Federation. “These programs not only help the LP teams but they can help manage the overall business strategies, efficiencies and control fraud.”
Technology has played a pivotal role in many facets of eCommerce operations over the past decade. Whether it’s order and inventory management or loss prevention, the proper use of retail software and hardware can be a significant boon to merchants.