Wayfair extends risk management deployment
A digitally native home furnishings brand is renewing its partnership with risk management solutions provider Riskified.
Wayfair, which initially implemented Riskified technology to automate and scale its approach to payment fraud in 2018, plans to continue deploying Riskified technology and deliver new, dynamic channels for both customers and suppliers.
Since initially deploying Riskified technology, Wayfair says it has gained significant ROI by greatly reducing fraud losses and false declines, while minimizing customer friction. Riskified solutions are designed to enable a frictionless e-commerce experience through its proprietary machine learning platform that reviews every transaction in order to accurately approve legitimate purchases while protecting the merchant from fraud.
By extending its partnership with Riskified, Wayfair intends to continue solving complex problems related to online shopping, checkout and payments. Riskified provides the chargeback guarantee model for fraud management as a core service for e-commerce retailers.
Wayfair is renewing its focus on fraud detection as it maintains momentum during 2021. In its most recent fiscal quarter, the retailer grew its customer base and average order value. Adjusted earnings per share of $1.89 topped analysts’ estimates of $1.16. In addition, the company’s active customers grew 19.6% to 31.1 million, up from about 26.0 million the previous year. The average order value inched up to $278 from $227.
Wayfair’s performance has been impressive enough to earn the retailer a spot on eMarketer’s annual list of the top 15 U.S. retailers by e-commerce sales, which will account for 72.3% of total e-commerce sales in the U.S. this year. Wayfair’s online sales are expected to grow 19.4% in 2021, outpacing the overall U.S. retail e-commerce sales growth rate of 17.9% in 2021. Wayfair generated $14.8 billion in net revenue for the twelve months ended June 30, 2021.
“Our goal when looking for partners is to make high ROI investments that deliver the best possible experience for our customers and suppliers,” said Michael Fleisher, CFO, Wayfair. “Throughout our collaboration, Riskified has enabled safe, fast and seamless payments and we’re excited to see what opportunities we can unlock in the future.”
“We have developed a strong relationship with Wayfair over the last three years and look forward to deepening our collaboration even more,” said Peter Elmgren, chief revenue officer at Riskified. “E-commerce sales accelerated significantly over the last year, and merchants have had to innovate at an unprecedented rate to meet customers’ demands. The strength of our partnership will enable us to provide consumers with convenient ways to shop without compromising their safety or shopping experience – while also helping Wayfair grow their platform.”
Based in Boston, Wayfair offers more than 22 million products worldwide across home furnishings, decor, home improvements, housewares and more. Wayfair’s sites include Wayfair, Joss & Main, AllModern, Birch Lane, and Perigold.
Riskified has spent the last eight years creating a machine learning platform that has reviewed over 1 billion historical transactions from leading global retailers and has over 400 million unique consumers in its network.