Skullcandy | Increasing revenue while keeping fraud on mute with Riskified
Meet Skullcandy
Based in Park City, Utah, Skullcandy is the original lifestyle audio brand that lives by its mission to not just listen to music, but also to feel it. Founded with a belief in the bond between music and board sports, Skullcandy drives innovation in audio experiences from groundbreaking, immersive technology in its headphones to once-in-a-lifetime music events featuring emerging artists. Skullcandy continues to redefine world-class audio performance and style.
Director of IT, Skullcandy
We access Riskified via the Shopify app, which makes managing our fraud strategy and monitoring performance easy, and we know the Riskified support team is always there for consistent and reliable problem solving.
The Challenge
Skullcandy has had a solid fraud strategy in place for years, so its ecommerce and IT teams are able to focus on improving authorization performance and unlocking incremental revenue. They were concerned about lost revenue and customer service inquiries generated by shoppers whose non-fraudulent orders were declined and then canceled. Were overly conservative approvals to blame? Could they reduce decline rates without opening the door to fraud? Working with their Riskified team, they found answers — and a bump in revenue.
The Solution
Riskified helped the Skullcandy team gain a deeper understanding of the platform’s algorithms and the range of ways to use fraud prevention levers to safely optimize revenue. Rather than treating every declined order as an automatic cancellation, the Skullcandy ecommerce and IT teams re-evaluated their internal workflows and introduced a secondary review layer for certain declined transactions. Simultaneously, Riskified recalibrated the brand’s thresholds to increase approvals, closely tracking decline rates alongside chargeback performance with the goal of minimizing declines — all while keeping fraudulent orders from being fulfilled.
As the strategy matured, Skullcandy began seeing decline rates as low as 0.1% while tightly controlling fraud losses and chargebacks. Customer support tickets related to false positives also decreased, and the Skullcandy team was able to scale approved revenue by 4X month-over-month. Its subtle shift in workflows kept fraud losses negligible and maintained low chargeback rates averaging about 0.06% over a 12-month period, including during the Q4 sales peak.
4X
increase in approved revenue
.06%
Average chargeback rate sustained over 12 months
Riskified helps global retailers realize their full ecommerce potential
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