How Retailers Can Use Holiday Shopping Findings to Fuel Growth in 2024
Cyber Risks & Threats | February 05, 2024
eCommerce is thriving, with online sales skyrocketing year after year, as evidenced by the 2023 holiday season which saw a remarkable increase to $221 billion, up 4.9% from the previous year.
However, as the digital marketplace flourishes, so do the challenges it brings. Amidst the surge in online activity, businesses are facing fake users and bots that threaten to undermine authentic retail success.
In order to shed light on this issue, CHEQ conducted a comprehensive study spanning the holiday seasons of 2022 and 2023. The findings were nothing short of alarming. Among the 400 million website visits analyzed across retail and eCommerce platforms, a staggering 21.8% were identified as fake in 2023 – a significant jump from the 9.2% recorded the previous year.
Some additional findings were as follows:
- 39.2% of desktop traffic to retail sites was fake during the 2023 shopping season
- 12.3% of mobile traffic to retail sites was fake during the 2023 shopping season
- 40% of direct traffic to retail sites was fake during the 2023 shopping season
This can impact every marketing tactic throughout the consumer journey including advertising, website optimization, inventory management, data and analytics, and future retargeting campaigns. In short – bots and fake users can poison everything.
So what does this mean for retailers navigating the digital landscape in 2024? The answer lies in proactive measures to fortify cybersecurity and safeguard against fraudulent activities.
By implementing advanced bot detection, utilizing machine learning and AI algorithms, retailers can move toward discerning genuine interactions from malicious activities. Additionally, keeping an eye on inventory for cart stuffing and denial of inventory attacks, optimizing analytics for more accurate user insights, and filtering out bot-generated traffic can also assist in putting genuine customers first while protecting your bottom line. Ultimately, fostering vigilance among staff and customers empowers them to identify any suspicious activities, contributing to a safer online marketplace.
As eCommerce continues to evolve, so too must the strategies employed to combat emerging threats. By embracing proactive cybersecurity measures and fostering a collective commitment to authenticity, retailers can navigate the digital landscape with confidence, ensuring a seamless and secure online shopping experience for all stakeholders. To learn more about the issues that retailers are facing when it comes to bots and fake users, download our report here.