Global e-commerce transactions increased 21{3c4481f38fc19dde56b7b1f4329b509c88239ba5565146922180ec5012de023f} YoY

New benchmark data reveals a 21{3c4481f38fc19dde56b7b1f4329b509c88239ba5565146922180ec5012de023f} increase in e-commerce transactions globally in November 2020 compared to November 2019. This was driven by strong consumer demand for household items and services, especially those providing shipment, remote education and training, and insurance for consumer electronics.

According to the data from ACI, based on hundreds of millions of e-commerce transactions from global merchants, the retail sector saw a significant increase (30{3c4481f38fc19dde56b7b1f4329b509c88239ba5565146922180ec5012de023f}) over the five-day period from Thanksgiving through Cyber Monday in 2020 compared to 2019.

The Saturday after Black Friday experienced the biggest increase at 47{3c4481f38fc19dde56b7b1f4329b509c88239ba5565146922180ec5012de023f} compared to 2019. However, the average ticket price on these peak days declined by 3{3c4481f38fc19dde56b7b1f4329b509c88239ba5565146922180ec5012de023f} compared to 2019, down from $136 to $132, as consumers are attracted to free shipment and sales.

“This year’s holiday season is looking very different from previous years with many merchants starting sales much earlier, as well as continuing promotions beyond the traditional peak days of Black Friday and Cyber Monday,” comments Debbie Guerra, executive vice president, ACI Worldwide.

The result is a substantial increase in e-commerce transaction volumes prior to Black Friday. In addition, many merchants expanded their buy-online-pick-up-in-store and free next-day delivery options, which attracted many consumers.”

Fraud attempt rates by volume increased slightly to 1.7{3c4481f38fc19dde56b7b1f4329b509c88239ba5565146922180ec5012de023f} by volume and 3.4{3c4481f38fc19dde56b7b1f4329b509c88239ba5565146922180ec5012de023f} by value, similar to prior holiday seasons, as a result of increased genuine consumer spending outpacing fraud.

Non-fraud chargebacks increased by 15{3c4481f38fc19dde56b7b1f4329b509c88239ba5565146922180ec5012de023f} in October* 2020 compared to 2019, a lower percentage than that of April and May of 2020, mainly due to more people being back at work and call centres being better staffed to deal with consumer calls.

“Although fraud rates have increased only slightly, merchants and consumers do need to be vigilant. Consumers should avoid leaving packages on their doorsteps for long periods of time to avoid porch piracy, as this has been an area of growing concern over the years,” continues Guerra.

“As the buy-online-pick-up-in-store channel continues to experience fast growth driven by the pandemic, it is providing greater opportunity for fraudsters.​”

Key Findings:

E-commerce purchasing trends:

• In 2020 to-date (January to November), global e-commerce transactions increased by 20{3c4481f38fc19dde56b7b1f4329b509c88239ba5565146922180ec5012de023f} compared to the same period last year.
• Travel and ticketing continued to see a significant dip in November due to the pandemic, declining 60 and 85{3c4481f38fc19dde56b7b1f4329b509c88239ba5565146922180ec5012de023f} respectively.
• Transactions in the gaming sector increased 50{3c4481f38fc19dde56b7b1f4329b509c88239ba5565146922180ec5012de023f}; this increase was less than previous months, potentially due to market saturation as well as consumers potentially awaiting holiday gift cards for gaming purchases.
• The US saw an increase in transactions of 20{3c4481f38fc19dde56b7b1f4329b509c88239ba5565146922180ec5012de023f} and the UK of 19{3c4481f38fc19dde56b7b1f4329b509c88239ba5565146922180ec5012de023f} from January through November 2020 compared to the same period in 2019.

Fraud trends:

• ​Fraudulent attempt purchase value decreased by $11 in 2020 compared to 2019; this was the impact of airline, sporting event and concert ticket purchase declines, which have a high average ticket price; genuine purchases value decreased by $18​.
• Fraud attempt rates by volume increased slightly by 1.7{3c4481f38fc19dde56b7b1f4329b509c88239ba5565146922180ec5012de023f} and 3.4{3c4481f38fc19dde56b7b1f4329b509c88239ba5565146922180ec5012de023f} by value, similar to prior holiday seasons, as a result of increased genuine consumer spending outpacing fraud.

*As chargebacks take approximately 45 days to process, the most current complete data is from October 2020.