Mexico City – In it 2022 hot sale 61% of buyers are thinking of purchasing a product or service. The figure is slightly lower than that of 2021 where eight out of 10 digital users planned to make at least one purchase during this initiative created by the Mexican Association of Online Sales (AMVO).
This discount season, which will take place from May 23 to 31, it represents an opportunity for businesses to increase their sales, but it also represents a series of operational and logistical challenges.
In the ninth edition of the Hot Sale, due to the country’s financial situation, 7 out of 10 potential buyers declare that they will maintain their budget or increase it during this edition, where 60% declare that their planned budget will be up to MX$3,000 pesos, says the Hot Sale 2022 Purchase Expectations Reportmade by AMVO.
Although e-commerce is growing steadily, the increase is no longer as aggressive as in the first year of the pandemic, which was around 80%. The 2020 Hot Sale raised MX$20,000 million pesos, while the 2021 edition raised MX$18,557 million pesos in total sales. And it is that last year the increase in online sales was only 27%, indicates the AMVO.
Around 600 companies will participate in this Hot Sale 2022which will have to overcome the following challenges, according to experts.
1. Fraud prevention
Fraud pressure on e-commerce has grown faster than online shopping. In an interview with Bloomberg Línea, Christian León, director of Signifyd Latin America, shares that fraud attempts grew by 207% in Mexico. And notably, the overall 2021 Hot Sale fraud pressure figure increased 55%.
Fraudsters are getting more sophisticated, but there are ways to identify them. In Signifyd they have more than a thousand variables to identify a genuine buyer and a fraudulent one.
One of the main frauds occurs through the acquisition of accounts. Account takeover, a scheme where a fraud ring obtains login information and infiltrates an account, is on the rise. Account takeover fraud increased by 239% in 2021 in Mexico compared to pre-pandemic times, according to data from Signifyd.
Another format that is gaining strength is more fraud attempts through old accounts. Merchants, León explains, tend to trust an account that has been open for years at the time of approving a transaction. Fraud pressure originating from older accounts increased 200% year over year, and fraud pressure from new accounts grew only 28% year over year.
León explains that when an e-commerce operation occurs, when the user clicks on the pay button, the business has to make a decision to approve it or not in seconds. Because if it takes time, the customer experience is not satisfactory and you can jump to the competition.
Also, by being wrong and rejecting a transaction from a good buyer, you are losing potential customers. Fear of fraud or chargeback (and not just fraud per se) also affects business profitabilityby denying the sale to good users, warns León. These are the hidden costs of fraud.
Solutions like Signifyd help detect patterns and distinguish a fraudster and a new user, of which there are many due to the growth of e-commerce. In addition, this company helps businesses increase their sales between 5 and 10%.
2. Speed and efficiency in deliveries
Two out of ten people see delivery times as a very important role when it comes to a repurchase. To achieve this, companies should not depend on a single provider of messaging and parcel services, advises Ilan Epelbaum, general director of Mail Boxes Etc. in Mexico. “That’s a big mistake, you have to diversify and compare,” Line told Bloomberg.
In addition, says Epelbaum, companies must have the appropriate technology to provide an efficient service. “Today, customers no longer want to wait two days for a package, and we want to have real-time tracking of where the package is,” emphasizes the manager of the shipping and logistics solutions company.
Companies, especially small and medium-sized ones, recommends Epelbaum, should look for the provider of the e-commerce page or the marketplace to have the technology to be able to integrate logistics services to the online store so that everything is in one place. automatically and when the customer buys the data automatically falls and the guide is generated, so the process will be much faster.
3. Customer service and follow-up
Something that is also transcendental in the shopping experience, continues Epelbaum, is customer service in the event of an incident, that is, if the package is lost or delayed. Companies must be ready to be able to solve it. “When the client has a problem, he does not want to face a recorder or a bot that is not going to help him solve it.”
Also, as part of the customer service You have to consider a good packaging of the products and have a good follow-up to the repurchase. “Very few companies do it, I have had few experiences where they ask me after a few days: how did your delivery arrive? Is your delivery correct, did it not arrive damaged? That speaks of a professionalism that very few companies follow”, asserts the director of Mail Boxes Etc.