Spider Labs Launches Service to Detect Purchase of Items for Illegal Resale Using Ad Fraud Technology

Spider Labs is pleased to announce the launch of its new service detecting purchase of items for illegal resale. The service utilizes expertise and technology accumulated by Spider AF’s anti-ad fraud tool to detect online fraud.

Spider AF’s new service aims to detect and prevent illegal resale before the problem occurs

The e-commerce industry for cosmetics and health products has been encountering problems where trial products that are resold are receiving better sales compared to retail priced items. The sale and distribution of information appealing as side jobs have also become a factor in the increase in illegal reselling. The damages are said to exceed several thousands of dollars per month due to shipping costs, labor costs, and prospective customers being diverted to resale products. Due to COVID-19, there has been an increase in consumers who have diverted their use of online shopping sites to resale sites. This has affected companies that focused on improving online sales due to increasing operating costs and lower sales performance.

Methods of Illegal Purchase

  • Purchases and resale of products with first-time discounts, trial prices, or subscriptions by registering multiple accounts with false personal information or altering address format, then immediately canceling their membership.
  • Affiliates illegally use crowdsourcing sites and other methods to get people to make purchases on their behalf, then pay a margin to have the products sent to them for resale.
  • The use of software programs that execute automated tasks such as bots to purchase products in large quantities.

Spider Labs’ Detection Service for Purchase of Items for Illegal Resale

Spider AF’s new service utilizes ad-fraud countermeasure technology to detect certain characteristics of resellers and unauthorized purchases. E-commerce companies have been struggling to prevent customers from purchasing first trial products as they are seen as new customers, but with Spider Labs’ Detection Service, companies are able to detect unauthorized purchases and prevent the resale beforehand. This will help companies not only improve their brand image, but also their product value and, ultimately, sales performance. 

Use Case 1: Multiple fraudulent purchases detected in 2 weeks

Spider Labs received feedback that the vast majority of identified fraudulent purchases were intended for illegal resale of goods. Upon further investigation, it was found that over 1,000 fraudulent purchases were exhibiting this intent. By eliminating this fraud, the company was able to reduce the risk of brand damage.

Use Case 2: Bulk purchases detected from the same user

The company identified an issue related to fraudulent purchases and began to commit valuable time responding and handling the issues. Spider AF was able to detect that large quantities of fraudulent purchases were from the same users. By utilizing Spider AF, the company was able to improve detection accuracy and save time spent handling fraud.

Spider AF offers a one-month free diagnosis for its new service and monthly fee starts from $900.

For inquiries:

Contact: sales@spider-labs.com

Source: Spider Labs