Vitabrid Japan, a D2C venture company specializes in developing and distributing skincare and nutraceutical products. They sell their products through a subscription business model where customers make repeat purchases.
Vitabrid Japan faced the challenge of unauthorized resale of their products, particularly during the initial campaign period. Resellers would purchase products at discounted prices and even cover advertising costs through affiliate advertising URLs, undermining the effectiveness of their business model.
To address the issue of resale, Vitabrid Japan decided to implement Spider AF, a fraudulent purchase detection service originally used for ad fraud prevention. Spider AF has been integrated into over 100 D2C e-commerce websites and has the capability to detect users engaging in repetitive purchases within a short period, including organized list-type reselling.
Operation and Results
Since implementing Spider AF, Vitabrid Japan has taken measures to cancel orders and stop product shipment when potential resale patterns are detected. This has led to a gradual decrease in the total number of resale incidents, as they consistently block initial orders suspected of being resellers.
While there has been an increase in customer inquiries regarding order cancellations, Vitabrid Japan handles them with proper responses, understanding that not all inquiries are valid and some may come from potential resellers. They also add notes to customer support history to ensure proper handling of detected cases.
Results and Future Plans
Vitabrid Japan is satisfied with Spider AF's service, as its implementation is straightforward with minimal effort. The company has observed improved detection accuracy since the initial launch of the service. They are also exploring automation integration with cart systems and chatbots to streamline the process from detection to blocking. Vitabrid Japan encourages other businesses facing resale challenges to try Spider AF, as increased utilization will contribute to the improved accuracy of detecting potential resale.
Moving forward, Vitabrid Japan aims to promote Spider AF’ adoption among D2C businesses and continue improving its effectiveness in combating unauthorized resale, thus ensuring sustainable business growth.
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