Chargebacks911, a chargeback tech platform, has advised all UK online Amazon sellers on Prime Day to be proactive in preventing a post sales chargeback surge. By taking part in best sales practices, the chargeback experts predict that sellers can benefit from sustained sales growth and a positive customer experience from the multimillion-pound, two-day shopping event and beyond.
Amazon’s Prime Day has become an increasingly popular retail sale event in the UK. The European platforms of the eCommerce giant offer Prime users exclusive deals from some of the biggest brands and over 100,000 small businesses over a two-day shopping event: Tuesday, July 16 to Wednesday, July 17. UK Prime sales showed significant growth in 2023, compared to 2022, with the first 24 hours generating online sales worth £581 million, showcasing the incredible opportunity for online sellers.
While it clearly presents an incredible chance to boost sales and acquire new customers, there are threats that sellers need to prepare for, says Monica Eaton, Founder and CEO of Chargebacks911. “On a peak shopping event, such as Prime Day, with a high volume of purchases, customer service operations could be stretched, especially for smaller operators that have fewer resources. This means the risk of transaction disputes and subsequent chargebacks will be high in the weeks after the event.”
The average Prime Day order value increased by nearly 50 per cent in the UK last year. To capitalise on this growth, Eaton cites three key areas that online sellers must be prepared for: customer service, shipping delays and fraud detection. “Clearly, sellers will see an increase in inquiries and complaints during a major sales event like Prime Day,” said Eaton. “If they aren’t prepared to meet the surge in calls and emails, this could spell trouble.”
While any shipping or delivery delays, out-of-stock items, or other logistical issues could result in negative customer experiences, this is especially problematic when Amazon customers expect fast and reliable delivery. “The result could be serious damage to a seller’s reputation on the platform, in addition to the resulting chargeback,” said Eaton.
Preventing fraudulent activity is a common challenge as the number of sales increases. While Amazon has robust fraud detection mechanisms in place, it’s still possible that some fraudulent orders could slip through undetected. This would lead to more chargebacks and disputes, further damaging sellers’ relationships with customers.
“It’s crucial that you incorporate strategies to maximise customer satisfaction. This is going to be the key to maintain a healthy relationship with shoppers and avoid reputational and financial damages,” says Eaton.
To take advantage of the opportunities surrounding Prime Day, Eaton advises all sellers to provide clear, thorough, and precise product listings, along with detailed terms and conditions. In addition to providing excellent customer service with well-staffed teams prepared to handle a surge of calls, sellers must communicate clearly with their customers on returns, and should be ready to track feedback and reviews.
To prevent fraudulent activity and chargebacks, Eaton recommends “a strategic approach to fraud detection and chargebacks mitigation. This involves implementing the tools to track and identify suspicious activities, engage in best practice aimed at identifying and fixing vulnerabilities, as well as using chargeback prevention and management solutions to track your transactions. In doing so everyone selling through Amazon can take advantage of Prime Day’s potential to boost sales and grow their businesses without the cost of chargebacks affecting their bottom line.”
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