As some areas begin to reopen, USA eCommerce remains strong
- Mid-April pushed peak holiday-shopping volume
- While volume is up overall, it varies widely by industry
eCommerce Data Trends
Spring and Summer 2020
Get the Updated Data Monthly:
Home office and electronics purchases trend closer to pre-pandemic averages after spikes
Sporting Goods see jump in online sales at the unofficial start to summer
Late May shows purchases of sports equipment picked up to 529% year over year growth
- The Associated Press, New York Times and Washington Post, cite Kount data on sporting goods purchases
- Business Insider features Kount’s data on the increase in pet supply transactions
Quick-service restaurants see continued increase in transaction volume as restrictions ease
Gaming and Streaming
hits highest spike so far this year, at 98% year over year growth
Wellness and Vitamins up 61% year to year
Focus on health and temporary closure of in-person stores leads to spike in supplements and vitamin purchases
Crafts and Wine show a slowdown from the late April peak, but transactions remain up 679% year over year in late April
RETAIL FRAUD TRENDS
Retailers need to watch for resellers, retail arbitrage, cashing out, and friendly fraud.
GAMING AND STREAMING FRAUD TRENDS
Accounts are vulnerable to credential stuffing, account takeover, and for streaming services—watch for “potlucks.”
FOOD SERVICE FRAUD TRENDS
More online orders mean more loyalty accounts—an more fraud. Stop “pizza plugs” and compromised accounts.
Media Inquiries: News@Kount.com
Global eCommerce has been impacted by Coronavirus and COVID-19 in a number of ways. Kount data shows online purchase volumes have rapidly increased for some industries. It also indicates changes in the way consumers are engaged in eCommerce.
Transaction Trends by Industry
RETAIL
533%
Increase in Home
Crafts & Wine
490%
Increase in
Pet Supplies
138%
Increase in
Sporting Goods
86%
Increase in
Wellness & Vitamins
62%
Increase in
Home Office & Electronics
Third Week of April vs. Average February Week
Trend Summary:
- As families look to stay active, sporting goods saw a peak around the “unofficial start to summer” of Memorial Day Weekend, and remain up 342% from the same time in 2019
- Pet supplies transactions are up year to year, but have come down from the late-April peak, when many stores were closed to in-person shopping and families were bringing home new animals and stocking up on supplies
- Crafts sales are beginning to level out after a massive spike driven by both DIY personal protective equipment, like fabric for masks, and by at-home activities for the family
- Home office and electronics purchases are approaching pre-pandemic transaction volume levels as workers settle into their at-home environment or return to work
- Health has become a top focus, with consumers stocking up on vitamins, wellness products, and signing up for home health-improvement programs.
Retail shopping cart data shows these items have spiked week over week in March:
1244%
Increase in Volume of carts containing “Hand Sanitizer” in March
145%
Increase in Volume of carts containing “Toilet Paper” in March
89%
Increase in Volume of carts containing “Firearms” in March
Fraud Trends to Watch in Retail
Resellers
Buying low and selling high using an eCommerce retailer’s supply chain to fulfill orders. This can cause items to be out of stock and also disrupt promotions retailers use to build their business.
Retail Arbitrage
Similar to the resellers, but more dangerous because bad actors use sophisticated technology to automate the entire process providing scale and speed.
Cashing Out
This is when bad actors buy goods or obtain cash using validated stolen payment cards or other user account data.
Friendly Fraud
Occurs when customers request refunds from their issuing banks, claiming that transactions on credit card statements are fraudulent. This type can include accidental friendly fraud or intentional friendly fraud.
GAMING AND WIRELESS
Online gaming and wireless industries show a surge in demand for in-home entertainment across gaming, wireless services, and streaming media.
Fraud Trends to Watch in Gaming, Wireless, and Streaming
Credential Stuffing
Mass login attempts used to verify the validity of stolen username/password pairs. This information is used to take over accounts.
Account Takeover
Illegal access to genuine customer accounts. Due to mass data breaches and phishing attacks that expose billions of usernames and passwords, a threat agent is able to access a user’s confidential online accounts and then steal the data or value contained within them.
Streaming Potluck
Each member of a group brings their account for a streaming service and shares it. Each member of the group has access to all services. Depending on the service provider’s business model, unauthorized account sharing can cause lost revenue.
RESTAURANTS
Quick service restaurants that offer mobile-order ahead and other ways to order food online show significant growth year-over-year in digital channels. This industry saw some impact from business reactions to government mandates, but in recent weeks, most restaurants have shown growth since the early weeks of the pandemic.
Fraud Trends to Watch in Restaurants
“Pizza Plug”
Fraudsters use stolen accounts to provide heavily discounted food delivery. This practice is often referred to as a “Pizza Plug” when advertised on social media.
Compromised Accounts
Fraudsters use online marketplaces to sell access to compromised accounts for streaming and food delivery. Marketplaces can offer stolen accounts from hundreds of brands for sale.
Adjusting to New eCommerce Trends
The “new normal” has also brought changes in eCommerce models. Many businesses are seeing an increase in next-day or two-day delivery requests, Buy Online, Pick Up in Store requests, and ship-from-store efforts. This could introduce new or expanded use cases for many businesses.
Same Day or Next Day shipping is leveling out after peaking at 305% year over year increase in mid-April, approximately the same week many stimulus checks went out in the U.S.
These changes can introduce or expand fraud attempts, meaning fraud prevention leaders need to be closely involved in order to implement appropriate controls and data collection into the process. Kount’s AI-driven fraud prevention, customizable policy engine, and data and analytics tool can help businesses navigate these quickly evolving trends.
Read about Kount’s COVID-19 Response and get in touch with Kount to navigate evolving fraud prevention needs. READ BLOG
USA Transaction Data
- eCommerce transaction volume in the USA hit above peak-holiday shopping season volumes in late April. As many areas begin to reopen, eCommerce volume has slowed slightly, but remains up 23% year to year.
- Some industries saw major decreases in transaction volume as a result of shut downs and stay-at-home orders, but on a high-level, this is countered by increases in other verticals.
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