Fake order mitigation: A profile based mechanism

Abstract

The ever-increasing need and interest of the consumers in online purchases has been a major driver in shaping the persistent and prominent role of e-commerce industry. Business – Consumer trust is a very important factor which should be harnessed for the well-being of this e-commerce community. Such a relationship can be easily hampered owing to the fraudulent behavior of either the consumer or the seller. From a consumer point of view, placement of fake orders can be considered as a breach of trust relationship which may attribute to the losses incurred to the e-commerce industry. Fake orders are those orders which are intentionally cancelled post the packaging and shipment stage. Motivated from this idea, this paper proposes an efficient mechanism to mitigate the fake orders, thereby, reducing the loss of packaging and shipment cost and improving the Business – Consumer relationship. The necessity to reduce the number of fake orders has been discussed eloquently in this paper. A qualitative analysis has been performed to elucidate the efficiency of the proposed mechanism. This mechanism, if implemented, has the potential to mitigate the fake orders which will inherently increase the profit of a company.