Under Armour México represents one of the world’s most recognized athletic brands in one of the world’s fastest-growing ecommerce markets. Domestic ecommerce grew 81% from 2019 through 2020 as more Mexican consumers turned to online shopping after the start of the pandemic.
Fraudsters are turning their attention to Mexico’s ecommerce market, too. As in many markets, online fraud surged in 2020. 16% of Mexican shoppers reported at least one instance of online payment fraud between March 2020 and March 2021 in ClearSale’s report State of Consumer Attitudes on Ecommerce, Fraud & CX 2021.
Selling sought-after brands in a market where many customers are new to online shopping and fraudsters abound presented particular challenges for Under Armour México.
“Before ClearSale, we had a solution in which we were responsible for managing all the different tools, including setting the fraud rules about whether we approved an order automatically, refused an order automatically, or went to manual review, which we also did,” says Ecommerce Operation and Call Center Manager Bernardo D’Elia. “We quickly realized that this process wasn’t sustainable because of the resources and the expertise that is needed to review all our orders quickly and accurately.”
With ClearSale, Under Armour México approves a higher-than-average number of orders each month, maintains a lower-than-average chargeback rate, and prevents millions of pesos in fraudulent orders each year.
average monthly approval rate, compared to typical approval rates among Mexican merchants ranging from 40% to 65%.
average monthly chargeback rate, compared to typical chargeback rates ranging from 3% to 6%.
Source: ClearSale Country Profile: The Guide to Ecommerce in Mexico
in fraud losses prevented
The Challenge: Help the Under Armour team approve more good orders, stop more fraud and save time
In addition to saving staff time on order screening and review, Under Armour needed a way to ensure that more good orders are approved. Often, merchants err on the side of caution by rejecting orders that seem risky in any way. However, that leads to higher rates of false declines that can cost businesses customers in the long run.
- 41% of Mexican ecommerce shoppers agree they’ll never order again from a merchant who declines their order.
- 43% agree they would post something negative on social media about the merchant after a decline.
- 43% report at least one declined online order between March 2020 and March 2021. During the same period, an average of 20% of consumers in the U.S., U.K., Australia and Canada reported at least one declined order.
Source: ClearSale’s State of Consumer Attitudes, Fraud & CX 2021 Survey
Under Armour needed a solution that would prevent fraud, reduce false declines of good orders and help their team work more efficiently.