Think Tank: To Mitigate Online Fraud, Analyze Referrals



E-commerce has had a huge impact on how fashion merchants market and sell their goods, but it hasn’t changed everything. Customer acquisition still works as a funnel where each stage should be optimized to maximize revenue. Smart companies know that traffic alone doesn’t move the needle.
Merchants can bring more visitors to their site by increasing their advertising spend, but if it doesn’t translate to revenue, then what was the point? One blind spot for a lot of companies — even the successful ones — is the fraud review process. Good customers are being rejected after the acquisition worked. Conversion at the fraud level needs to be monitored carefully to ensure optimal performance.
Looking at referrals is a great way to do that. How shoppers arrive at an e-commerce store can have big implications on merchants’ profitability. Whether they typed in your URL directly, arrived via search engine, or clicked a link on another web site may be correlated with their likely cart size, tendency to complete their purchases and more. Paying attention to their origin and their results can help merchants focus resources on those sources that maximize profits.
My company, Riskified, provides e-commerce fraud protection by using machine learning to analyze

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