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Chargebacks and fraud are a massive issue for every ecommerce business

• 0xy 5y ago
  I wouldn't call it a "massive issue". If you have a reputable ecom business your rates of chargeback and fraud should be quite a bit under 1%. Adult businesses however can have triple or even greater than that. If you can't absorb 0.5% in loss, then you shouldn't be in ecommerce. Same thing as being in bricks and mortar, if you can't absorb shoplifting you shouldn't be in business.
  • bpicolo 5y ago
    Not relevant in this case, but for low margin physical goods the math can be much worse. You're out the cost of the good, the taxes and fees associated, the margin, and the chargeback fee. For food delivery middlemen, for example, it's a really rough game