Over the last decade, Black Friday has become known as the busiest shopping day of the year. It is a retail phenomenon, originating from the United States, but has taken off throughout the United Kingdom in the last couple of years. Predictions claim that Black Friday this year on November 27th will see the first ever £1billion UK online shopping day.
Black Friday is widely seen (although claims to its UK origin do vary) as having been introduced to the UK in 2010 by Amazon, offering large discounts to consumers online. Year by year, momentum for Black Friday has snowballed, prompting many retailers to join in and offer discounts on a number of their products for one day only (although some retailers extend this to a full week).
Since its introduction, Black Friday sales have been growing steadily, however a massive spike in customers and sales last year caused a spending frenzy. 2014 saw the average visiting numbers increase by 46% in comparison to 2013, and the number of sales double on average – a 204% increase according to ecommerce company Screen Pages.
On the surface, the growing number of sales would seem a major plus for UK online retailers. The benefits for consumers’ wallets are easy to see, with large discounts and offers available unlike on any other day in the calendar. However, a growing number of issues are becoming apparent for merchants with regards to the new retail phenomenon.
Black Friday presents an ideal platform for fraudsters. Shoppers are bound to produce unusual buying patterns, which makes it harder for retailers to spot fraud patterns and identity fraudulent transactions.
This contributes to a sharp growth in chargeback rates. Chargebacks typically hit retailers 60-90 days after the original sale, so it is important for retailers to be aware and implement the essential tools necessary to prevent chargebacks from occurring in the first place, or disputing them successfully if they do occur.
In order for merchants to help eliminate potential losses and fraud occurrences, it is important for the sufficient protection processes to be implemented now, before the upcoming holiday season gets into full swing next month.
