The credit card fraud sharks are circling, ready to take a nasty bite out of your hard earned profits in the form of fraudulent chargebacks. Chargebacks (disputed credit card charges), which were originally designed to protect consumers from unauthorized credit card charges, have become a bigger issue in recent years.
According to Juniper Research, a world-wide forecasting and consulting company for digital markets, in 2017 alone, retailers lost over 31 billion in chargebacks. The problem is not going to go away, in fact, it is expected to get worse.
A lot worse.
Per a study by LexisNexis, a risk management company, the cost of chargebacks increased by 14% between 2017 and 2018, with the average retailer losing as much as 1.8% of their revalue to fraud-related costs. When you consider that most retailers work on a razor-thin profit margin of 5% or less, that loss is even more significant. While chargebacks are an area of concern, there are some things you can do about it.
Picture this: you’re at the beach on a scorching hot day. You walk a long way down the beach to a vendor and get your favorite cold drink. As you are being served, the girl behind the counter asks if you would like some fries too.
Suddenly, you realize that you are hungry. Those fries really smell good. A few minutes later you are happily enjoying your fries and icy cold drink and perfectly seasoned fries under the shade of a festively colored umbrella.
Let’s break down the story from a retailer's perspective. The first transaction was to fulfill a known need/desire. The second desire did not appear until it was suggested. The suggestion made sense and fit your needs at that time.
You went away feeling good about the exchange. You were, in fact, quite happy to spend more in order to gain something you didn't even know you wanted (until you had the opportunity to have it). That is the essence of the cross-sell. Although they are slightly different, it is sometimes called upselling or an add on.
To be clear, upselling means selling a higher priced version of an item, while cross-selling means offering another product or service that compliments the first alongside the original, such as a printer that works with the computer they just bought.
Mary was getting close. She could see the finish line in the distance. Lungs burning, body shaking, she wanted to stop. Pausing for a breath, she heard her husband and kids yelling to keep going. Instead of stopping, as her aching legs insisted, she kept going. An hour later she staggered past the finish line, exhausted but victorious.
Saving money while purchasing inventory can help boost your ROI. The ability to buy low and sell low ensures your customers are getting the best price, which will create more return business. Retail can be a fun and rewarding business endeavor if you follow a few guidelines for stocking your business. A good way to save money on inventory is reselling wholesale products. So, let’s explore these topics further.
There are thousands of items that you could sell at your mall kiosk - that's the beauty of it, right? With so much to choose from, we've compiled a list of popular items that seem to fly off of shelves and are consistently top sellers.
Are you a budding entrepreneur prepared to begin your own retail business? Then, continue reading to discover why a kiosk is ideal for first time retail businesses. There are numerous advantages to investing in a kiosk cart and we are going to share with you are top favorites!
The holiday season is high pressure and high stress for retailers. It is called Black Friday for a reason: it’s your time to make money. If you are running a mall kiosk operation or any retail location this holiday season, now is the time to plan some fun holiday competitions that will get your employees pumped up for the best sales season ever!
Deals are everywhere, especially during the holiday season. Every business is doing whatever they can to attract as many shoppers as possible. Part of preparing for the influx of people that will be visiting the mall in the next few months is deciding what sales or offers you'll be offering and how you're going to let potential customers know about them.
The holidays are so close you can taste the pumpkin spice and peppermint. For most, this time of year means gifts and celebration. In the retail space, though, it can be a nightmare season if you haven't properly prepared. Getting your business ready before the wave of holiday shoppers descend on you is just as important as how well your store actually performs.
Customer retention is something that every business owner strives to improve. From sales to special deals, finding a way to catch a customer's attention and bring them back to your store is one of the most important and ever-changing things a business needs to consider. Constantly changing up your retention methods is the best way to keep customers feeling like they're experiencing something new and exciting. After all, no one feels excited about 10% off select products the fourth time around.