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BOPUS fraud could threat retailers, Chargebacks911 warns

Tuesday 18 February 2020 12:03 CET | News

Chargebacks911 has cautioned that while BOPUS offers omnichannel retailers a way to compete with online merchants and marketplaces, an uptick in consumer fraud could hamper its profitability.

Increasing numbers of consumers opt to go to one of the seller's bricks-and-mortar locations and pick up the purchase themselves. Nearly 67% of US shoppers have now used buy online, pickup in store (BOPUS), while 90% of retailers say that they plan to be offering it by 2021. 10% of all sales is estimated to be fulfilled through BOPUS by 2025.

The dispute mitigation and loss prevention company affirms that in Q3 of fiscal 2020, Target saw its digital sales increase 31%, with same-day services, including BOPUS, accounting for 80% of the growth. Other retailers report the following results:

  • 40% of Best Buy's online sales come from BOPUS;
  • Big Lots reports that the rollout of BOPUS has for the first time made its ecommerce operation profitable;
  • In Q1 of 2019, 60% of Lowe's online sales were picked up in store;
  • Nordstrom's says that order pickup is its most profitable transaction.

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Keywords: Chargebacks911, fraud, threat, retailers, BOPUS, merchants, bricks-and-mortar locations, purchase, buy online, pick in store, transactions
Categories: Securing Transactions | Digital Identity, Security & Online Fraud
Countries: World
This article is part of category

Securing Transactions