How a Popular Beauty Brand Won a $20,000 Reseller Abuse Battle

For any fast-growing eCommerce brand, success brings not just excitement but also new and often unexpected challenges. One of the most frustrating issues is reseller abuse — a problem that quietly eats away at revenue, damages brand reputation, and disrupts customer satisfaction. Credo Beauty, a pioneer in clean beauty, recently faced this challenge head-on and emerged victorious. With NoFraud’s advanced fraud detection, Credo effectively tackled reseller fraud, preventing attacks that at times reached up to $20,000 in losses within a single week.

If your eCommerce business has experienced similar issues, this example offers valuable lessons on combating reseller fraud and abuse so you can protect your brand.

Reseller abuse or reseller fraud occurs when unauthorized individuals or groups bulk-purchase products with the intent to resell them at higher prices. Unlike traditional fraud, which typically involves stolen payment information or chargebacks, reseller fraud exploits product availability and customer demand.

For eCommerce businesses, reseller abuse and fraud can lead to specific challenges like:

• Inventory shortages – Resellers deplete stock quickly, leaving loyal customers unable to purchase products directly
• Price inflation – Unauthorized resellers sell products at inflated prices, undercutting your fair pricing strategies
• Reputation damage – Mishandled or overpriced products from resellers negatively affect how customers perceive your brand
• Lost revenue opportunities – Depleted stocks can turn genuine customers to secondary markets
• Operational disruptions – From reallocation of warehouse capacity to increasing restocking frequency, brands are forced into a reactive mode that disrupts their growth 

These are challenges faced every day by eCommerce brands, and Credo Beauty was no exception. But their story proves that reseller fraud is a solvable problem.

If you’ve heard of Credo Beauty, you already know that this clean beauty brand sets the standard in ethical sourcing, sustainability, and high-quality products. However, their rapid success made them a target for unauthorized resellers who bulk-purchased up to $20,000 worth of products in a week. Reseller activity caused:

• Severe inventory shortages as stock intended for loyal customers vanished within days.
• Disrupted operations as Credo’s team had to frequently restock popular items.
• Customer dissatisfaction as paying more for mishandled or overpriced goods reflected poorly on their brand.

Credo needed a solution fast — not only to protect their revenue but also to preserve the trust they had worked so hard to build.

To combat reseller fraud and protect legitimate customers, Credo partnered with NoFraud, a leader in fraud prevention solutions. Here’s how NoFraud solved the problem for Credo and delivered measurable success.

1. Customizable Fraud Detection

NoFraud allowed Credo to define purchase thresholds and create rules to block bulk orders automatically. This specificity targeted reseller behaviors without disrupting everyday customer transactions. Products stayed on shelves for real buyers, reducing reseller impact and securing inventory exclusively for Credo’s loyal audience.

2. Automated Order Review

Manual fraud reviews were consuming countless hours of Credo’s CX team’s time. By automating this process, NoFraud flagged fraudulent activity in real-time. Legitimate orders flowed efficiently, while problematic ones were instantly blocked, saving over 55 hours per month in operational effort.

3. Revenue Protection

By filtering out fraudulent activity and blocking unauthorized purchases, Credo saved $8,500 per month from chargebacks, refunds, and operational disruption. They also recaptured 2.6% in additional monthly revenue, which would have been otherwise lost due to overly strict and inaccurate fraud filters.

4. Enhanced Customer Satisfaction

With inventory once again accessible to loyal customers, Credo restored customer trust and delivered the seamless shopping experience their audience had come to expect. By prioritizing availability for the right buyers, Credo reinforced their brand values—clean, ethical, and accessible beauty.

The success Credo experienced wasn’t just anecdotal — it was measurable. Thanks to NoFraud, they achieved:

• 2.6% increase in monthly revenue by effectively blocking fraud and allowing legitimate sales to flow.
• $8,500 in monthly savings by preventing fraud, abuse and other related costs.
• 55+ hours saved each month as the CX team was freed from manual order reviews, focusing instead on customer engagement.

According to Rebecca Armstrong, Director of eCommerce at Credo Beauty:

“NoFraud has been essential to Credo Beauty’s success in preventing fraud and simplifying operations. From blocking reseller abuse to reducing chargebacks, NoFraud has allowed us to focus on what matters most — our customers and their experience.”

Reseller abuse poses a significant threat to high-growth eCommerce brands like Credo, but the right approach can transform these challenges into opportunities for improvement. By implementing a customizable fraud prevention solution like NoFraud, brands can:

• Protect revenue: Keep legitimate sales flowing while eliminating losses from reseller abuse and chargebacks.
• Streamline operations: Save valuable team resources by automating fraud detection and order screening.
• Maintain inventory stability: Ensure products are accessible to loyal customers, reducing stockouts and creating positive shopping experiences.
• Reinforce brand trust: Preserve customer relationships through consistent pricing and quality, free from unauthorized resales.

If reseller fraud is impacting your eCommerce operations, solutions like NoFraud can help secure revenue, optimize workflows, and protect your brand experience. Just like Credo Beauty, you can regain control over your inventory, reduce strain on your team, and build a more trusted, resilient business.

To learn more about how NoFraud stops reseller abuse while boosting profitability, get in touch today!