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Electronics retail: industry pulse, challenges & fraud risks
From supply chain challenges to changing consumer behavior, we delve into the biggest trends impacting the electronics industry. How is your business adapting to these shifts?
The online sale of consumer electronics is accelerating. Nearly half of 2020 sales happened online and the industry is projected to bring in over $79 million in ecommerce sales in 2022. This is a 7% increase from 2021.
In such an attractive market for fraudsters, what does this rapid growth mean for fraud risks? Find out what online electronics merchants had to say...
Account takeover is the biggest fraud risk
A massive 72% of electronics retailers say that account takeover is a top fraud risk. And 34% of merchants in this space have seen an increase in this type of fraud. Customers often blame the merchant for having poor security, even when it’s not their fault. Brand reputation and customer retention often take a huge hit as a result.
Market flooded with fakes
Around 10% of electronic products are counterfeit. In many cases, fake components find their way into the supply chain and are sold on by legitimate retailers. And online retail is making this even easier. How are you protecting both your customers and your brand?
Global Chip Shortage
Even huge brands like Apple and Samsung have been impacted by the supply chain issues related to the chip shortage. The chip crisis has meant that prices have shot up and will likely continue to do so. With demand outweighing supply, what does this mean for fraud in your business?
Source list
- Industry definition
- Consumer electronics predicted growth
- Ecommerce share of electronic sales
- Increasing price of electronics - TVs
- Increasing price of electronics - Mobile phones
- US stimulus package
- Apple losses as a result of the chip shortage
- Struggle with counterfeit goods
- Global cost of counterfeit goods
- Account takeover losses
