Here we’ll show you the impact of what fake reviews and scammers can take on real reputable businesses.
Over 90% of online customers research and read reviews before they purchase an item.
73% of consumers will reach an opinion after reading up to 5 reviews.
Between one and four bad reviews would be enough to deter almost 70% of online customers from purchasing a product from a vendor.
If you sell items online then chances are you have been targeted by your competition with fake negative reviews. There is a huge industry around fake reviews.
Fake reviews costs ecommerce site owners almost 30% in lost revenue.
Not only do fake reviews take a financial toll on the ecommerce site owner but they also take an emotional toll. It basically boils down to this. You spend a lot of time, effort and money to create an online business that pays your bills and puts food on the table then you have a competitor that wants to destroy your online reputation because they believe that posting fake reviews about you and your company will sell more of their product. This puts an unimaginable amount of stress on business owners. Especially small ecommerce business owners.
This doesn’t just happen to ecommerce site owners, it happens to small brick and mortar business owners.
Recently Requitix spoke with a small restaurant owner in Portland, Oregon and they informed us that someone posted bad reviews on their Google listing that caused them over 25% in lost sales. The amount of sales dropped 3 days after the comments were posted. They were beside themselves until they found out who it was. A competitor down the street.
Not only is the toll in the millions of dollars but it effects millions of merchants and Requitix is designed to stop this.
These are just a few of the millions of merchants that found out what fake negative reviews have done to them.
“Each and every day I have to defend our company to customers who have read fake reviews about us. It’s time consuming and I lose a lot of business over it."
“I woke up to a customer telling me that he read this review on SiteJabber. I went and looked and became quite ill. I stressed and stressed over it. I then found out that one specific competitor was going around posting these fake horrible stories. I was sick for weeks over it and I could do nothing."
“Our site started showing up on sites like TrustPilot, PissedConsumer, Scammed, SiteJabber, RipOffReport and they were all the same false review done by different usernames. It just didn’t make any since. We couldn’t figure it out. It was our first taste at this then we finally realized what was going on. It just crushed us. We contacted all of those sites and they refused to remove it. Even when shown all the same reviews by different usernames/peoples names. It was clear it was fake but they refused to remove it. It just floored us."
Did you know that over 20% of your traffic is going to be scammers looking to rip you off as well as your customers or members? This type of fraud costs ecommerce companies billions per year in chargebacks and lost revenue.
On average eCommerce merchants will lose around 8% of their annual revenue to fraud. Requitix helps resolve this with our Scammer/Spammer protection.
ScamWatch reported in 2016 that there was over $80,000,000 (80 Million!) dollars lost to scammers. An almost 8% financial loss!
Not only do scammers take a toll on ecommerce site owners but they can empty bank accounts of other consumers.
In Australia for the whole year of 2016, dating scams alone totaled over $25,000,000 (25 Million) in losses of which 59% of them were over the age of 55. That’s beyond sad.
The average monthly chargeback to merchants is around 2% and increases around 20% per year. This means that for every 100 orders, 2 of them will be sent back to the merchant as a chargeback with a hefty chargeback fee that can exceed over $50 dollars not to mention the loss of merchandise.
A 2016 study by the LexisNexis group stated that the average chargeback costs merchants $2.40 for every $1 lost. This is because of the product-loss, banking fines, penalties and administrative costs.
If your chargeback to transaction ratio is high, credit card companies will take immediate action against you because you’re now considered a high risk merchant and that’s bad news for you. Even at 1%, you will be classified as high risk and can and will kill your account.
And chargebacks are big business. Do a search on Google and you’ll find thousands of sites that offer steps to reduce chargebacks. The average steps to reduce chargebacks? 39. Yes, a whopping 39 steps that you can follow to reduce chargeback rate. How about no steps and never see chargebacks again? That’s what Requitix will do for you.
Just for the ability to use a credit card merchant account like PayPal, Stripe, ccBill or others, you’re going to have to part with anywhere between 3 and 10% of the purchase. If you sell a product for $250 dollars, you can kiss $25 of it goodbye.
Why? Because these companies are designed to make as much money as they can from you.