Prediction 1: Policy abuse set to skyrocket 

Policy abuse, which occurs when a consumer exploits (intentionally or otherwise) a retailer’s terms and conditions, has gained significant traction over the past few years and will continue to be a top priority for online retailers as we go into 2023. 

Policy abuse, for example, is when customers misuse promotional codes, falsely report a missing item, return used or worn items, or hoard limited items with the intent to resell. These behaviors impact all areas of a retailer’s business – from legal to customer service to shipping and logistics – and can cost them millions of pounds in lost revenue. 

As we enter 2023, the ongoing economic downturn is forcing consumers to think critically about every pound they spend and every pound they save. We can anticipate, therefore, that consumers are likely to continue finding loopholes in retailers’ policies. If retailers don’t pay attention to these consumers’ behaviors and adapt accordingly to manage them, bottom lines will be severely impacted.  

Prediction 2: Taking personalisation to the next level

In a competitive eCommerce environment, you’ll be hard pressed to find a retailer that isn’t hard at work looking for ways to increase (and ensure) customer loyalty, something which will be of paramount importance as we go into 2023 and economic uncertainty continues. 

While much is said about personalising the customer experience (from retargeting to customised content to product recommendations) there are areas of the eCommerce shopping experience, like checkout and post-purchase, that also afford very interesting opportunities. Retailers that want to be competitive should make customers feel special by offering flexible payment options and methods and tailoring return policies to recognise and reward loyal customers. The key to winning in 2023 will be embracing creativity and moving away from a one-size-fits all approach at every stage of the purchase experience. 

Prediction 3: New payment modes present new risks

New digital payment methods are becoming ubiquitous: in 2021, digital wallets accounted for almost half of the world’s eCommerce payment transactions, with market share forecasted to grow from 49% to 53% by 2025.

But these emerging payment methods present new fraud risks. From SIM-swapping to biometric spoofing to opening up fraudulent digital wallet accounts, retailers must be aware of new fraud techniques. There are also nuances to fighting this type of fraud, given that digital wallets are meant to ease friction in the checkout process and optimise the customer experience. Fraud-fighting techniques must balance ease at the checkout with security.

Eyal Elazar is policy abuse expert at Riskified.