How Vestiaire Collective honed risk management to deliver a seamless, borderless customer experience
55%reduction in total cost of fraud
100%customer friction eliminated
Meet Vestiaire Collective
Since its inception in 2009, this luxury marketplace continues to overshadow its competition. It started with Sébastien Fabre’s idea: mining the riches gathering dust in French wardrobes, and bringing them back into circulation.
With an exceptional catalog, an army of quality experts dedicated to selecting its items, a well-thought customer journey, and a loyal community of more than 8 million fashion enthusiasts across over 50 countries, Vestiaire Collective definitely sets itself apart.
Fashion is universal, so a global approach was at the heart of the startup’s business model. Successfully expanding beyond France’s borders, it soon displayed an impressive YoY growth rate of 70%. Today, Vestiaire Collective has become the undisputed European leader in pre-owned fashion.
"A repeat customer can spend as much as €300 000 on the site. So we’re very careful about false declines, and are always trying to maximize approval rates. Because in the long run, we believe a false decline to be far more costly."
Both collaborative and community-based, Vestiaire Collective’s economic engine is its members. But with hyper growth in business volumes, maintaining a fluid customer journey became a key challenge. And for a shopping platform where the average cart value reaches €400, with certain rare items costing up to €90,000, winning over and maintaining the trust of sophisticated clientele demands the ability to deliver an impeccable experience, in every way.
The luxury goods industry attracts fraudsters of all sorts. If Vestiaire Collective efficiently tackled counterfeiting by manually checking every single item sold in its catalog, solely relying on unautomated processes to prevent payment fraud proved itself inadequate. It led to delays in order approval and fulfilment, and ended up harming the customer experience.
An additional challenge arose while expanding into foreign markets and encountering new, unfamiliar shopping habits. For Vestiaire Collective, it increased the risk of falsely declining good shoppers, with detrimental effects on customer lifetime value. Why would legitimate shoppers return to a platform that treated them like fraudsters? And who would recommend such a site?
"The fact that Riskified validates orders instantly, and refunds me for any chargeback incurred are decisive advantages. The decision was a no-brainer: I created a spreadsheet to show my CFO how it was going to create value, and there were no surprises once we went live."
To advance its global expansion strategy while preserving a superior customer experience, Vestiaire Collective looked for an automated fraud management solution. The goal was to maintain its manual review where it was effective, and to outsource segments where unfamiliar geographies and fluctuating volumes were eroding the customer experience. Flexible, intelligent, and scalable, Riskified’s solution was ideal. Overnight and during weekends, the review turnaround time used to be 6 hours onwards for orders deemed risky. Now, shoppers enjoy instant confirmation for all orders during these periods.
After partnering with Riskified, Vestiaire Collective enjoyed higher approval rates, reduced false declines, and the fast decisions it needed to preserve its premium customer experience. Utilizing Riskified not only drove conversions, but also supported the retention of customers with exceptionally high lifetime value. Moreover, Riskified provides a 100% guarantee on all the transactions it approves, and Vestiaire Collective never has to bear the cost of a fraud-related chargeback again.
More peace of mind, more revenue
- Increasing customer lifetime value and boosting profits
Better performance at lower costs
- An automated process that effectively cuts down operational costs
"If we include expenses related to human resources, fraud management tools, and chargeback fees, our total cost of fraud has been reduced by almost 55%, all this thanks to Riskified."
Riskified helps hundreds of global fashion retailers safely grow their online revenue. Download the case study to share with your team:Download as PDF