Overview
Sakura no Mori, a health food e-commerce site, has taken significant steps to enhance its resilience against resale activities by implementing Cacco's fraud detection service, O-PLUX. This move not only aims to prevent resale but also contribute positively to their customer lifetime value (LTV) by fostering lasting customer relationships.
Background of the Integration
Initially, Sakura no Mori managed its payment collection internally. However, due to an increase in unreturned cash (defaults), they decided to outsource this risk. They transitioned to a claim-assigned payment scheme, which improved operational efficiency. Yet, alongside this, they began to notice a rise in fraudulent orders, specifically orders targeting limited-time promotional products for resale purposes.
Faced with these challenges, Sakura no Mori evaluated multiple fraud prevention tools. Ultimately, they selected O-PLUX due to its proven effectiveness in improving LTV.
Key Benefits of O-PLUX Implementation
1. High Precision in Fraud Detection
During O-PLUX's trial phase, it was revealed that approximately 95% of detected orders either lacked subsequent orders or were outright canceled, indicating a high likelihood of resale intentions. By blocking such orders in advance, the company effectively reduced unnecessary advertising expenditure while implementing a highly accurate anti-resale strategy.
2. Flexible and Rapid System Integration
At the inception of the integration, manual reviews were performed through CSV file transfers. However, by transitioning to an API connection with the chatbot BOTCHAN, Sakura no Mori achieved a smoother integration process while keeping development resources in check.
3. Over 90% Reduction in Fraud Detection Workload
By automating detection and cancellation processes through the API connection between O-PLUX and BOTCHAN, Sakura no Mori significantly reduced the manual verification workload. Prior to implementation, they had to manually verify a large volume of orders in line with shipping schedules, but post-implementation, they achieved a remarkable 90% reduction in operational man-hours.
Insights from Tatsuya Matsui of Sakura Forest
Tatsuya Matsui expressed his surprise at the results from the O-PLUX trial, noting that the finding that 95% of detected orders were likely aimed at resale was shocking. He explained that the initial limited-time offers were designed to allow as many consumers as possible to try the products, and the observation of reselling directly correlated with declining LTV. He emphasized that the new integration not only aids in preventing resale but also reduces wasteful advertising costs.
About Sakura no Mori
Sakura no Mori, operated by Sakura Forest Corporation, is dedicated to enhancing the lives of its customers by providing health and beauty products through its e-commerce platform. The company continues to uphold its mission of achieving prosperity together with its clientele.
About O-PLUX Payment Protection
O-PLUX is a cloud-based fraud detection service tailored for online retailers. By leveraging unique algorithms combining machine learning with rule-based AI, it detects fraudulent orders in real-time, including credit card fraud and malicious resales. With a proven track record of being the number one service in Japan in terms of implementation, O-PLUX offers high-precision fraud detection and automated operational processes.
Cacco Inc.
Cacco Inc., the provider of O-PLUX, is committed to supporting businesses by solving challenges through innovative algorithm and software development. With a focus on transforming online transactions into secure experiences, Cacco offers a range of services including fraud detection and data science consulting, aimed at improving operational efficiency and profitability across various sectors.