AutoPets Case Study
$21k
Additional monthly revenue
8.9%
Increased order approval
120hrs
Monthly labor eliminated
The Company
AutoPets, the inventor, manufacturer, and retailer of the Litter-Robot, is an international leader in developing highly functional pet products that make pet care easier and more enjoyable. Launched in 2000, the Litter-Robot is the highest-rated automatic self-cleaning litter box on the market. Based in Auburn Hills, MI, AutoPets has been growing quickly and has been featured as a 2017 and 2018 Inc 5000 company.
AutoPets researched the various fraud detection software options to replace the basic gateway filters and manual reviews they were relying on which increased customer friction and resulted in lost sales. With chargebacks escalating up to $20,000 in some months, AutoPets knew that it needed to quickly find the right partner to stem its losses.
The Challenge
As an ecommerce retailer that sells a premium priced product, AutoPets was prone to deceptive customers trying to obtain its product using stolen credit cards and other manipulative practices. In order to protect itself, Autopets manually reviewed every high value transaction as well as orders with different bill-to and ship-to addresses. They also implemented strict AVS filters at their payment gateway. However, even with these monitoring procedures, fraudsters were still finding ways to evade detection, leaving AutoPets with large chargeback losses.
As AutoPets’ order volume exploded in 2016, they realized that they needed a different approach to fraud mitigation.
The Solution
AutoPets was seeking a solutions partner that was not only focused on preventing chargebacks, but also on optimizing AutoPets’ order acceptance rate. Another leading priority was the speed and accuracy of the integration and implementation process as the holiday season was fast approaching and a rapid installation solution was required.
After speaking with many providers, it became clear that NoFraud’s model was the best for AutoPets: powerful technology, cardholder verification to prevent false positives, and an easy and straightforward implementation process. NoFraud’s software quickly and seamlessly integrated with the AutoPets website in time for the holiday season sales spike.
Upon installation, AutoPets carefully double-checked NoFraud’s decisions to allow transactions to go through when their AVS filters flagged a purchase. They quickly learned that 84% of the orders they were previously declining were valid. Knowing that NoFraud guaranteed their decisions in the case of a chargeback, AutoPets felt confident about shipping orders that they would initially have declined. As a result, NoFraud significantly reduced the occurrence of chargebacks once implemented and increased revenue and profit.
“As an e-commerce business, we believed card-not-present chargebacks were part of doing business. Once we found NoFraud, that belief changed. With the peace-of-mind NoFraud provides, AutoPets is allowed to continue day-to-day operations without fear of the liability from fraudulent consumer transactions.”
Leigh Edwards
Controller and Director of Finance, AutoPets
The Results
Before instituting NoFraud in November 2017, AutoPets was accustomed to receiving more than 20 chargebacks a month. Today, receiving a chargeback is a rare occurrence.
Over the course of one year, NoFraud saved AutoPets approximately $70,000 in fraud-related chargebacks, while simultaneously increasing their order acceptance rate by 8.9%. Additionally, NoFraud has saved AutoPets 40 hours per week in order processing management; which includes the time it took for customer service and accounting staff to manually screen transactions and file chargeback disputes. Customer Service has also seen reduced checkout friction from AVS mismatches on consumer orders. When the occasional chargeback does occur, NoFraud reimburses AutoPets for the full chargeback amount as part of their Guaranteed Chargeback Protection program.
Before NoFraud
- 30 hrs/week spent on manual review
- 10 hrs/week spent on resolving chargeback disputes
- $7,500/month lost to chargebacks
- $25,000/month of cancelled orders due to gateway filter declines
- Customer frustration over order declines due to AVS mismatches
- Internal frustration with customer service/accounting to determine suspicious orders
After NoFraud
- No time spent on manual review, chargeback dispute management
- No fraud liability
- $21,000/month in increased revenue from NoFraud approvals on orders previously declined by gateway filters
- No frustration checking out with Credit Card
- 84% of AVS mismatched orders approved by NoFraud
- No Internal Frustration, NoFraud provides pass/fail decisions on every transaction
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