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Report: Online Sneaker Purchases Are a Risky Business

When it’s deliver-or-die, supply chains become the lifeblood of a company. To that end, the fashion industry has embraced technology to navigate today’s hyper-complicated supply chain, with myriad solutions shaping the first, middle and last mile. Call it Sourcing 2.0.

Sneaker and athletic shoe retailers have a lot more to worry about during online customer transactions.

According to a new study by e-commerce solutions provider Riskified, online sneaker transactions are 300 percent more likely to be fraudulent than an average fashion order.

The study also revealed that the more items in the bag or cart, the more likely a fraudulent transaction will occur. An order with six or more items is 3.5 times more risky than a smaller order, the report revealed.

Style is also a factor for those committing fraud. The more stylish the shoe, the higher the risk of fraud.

Canada and Great Britain were outlined as top shipping destinations in fraudulent transactions.

In spite of the high risk for fraud, Riskified reported that sneaker retailers should be able to approve 80 percent of online transactions.

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