Hoodrich Case Study
Increased order approval rate
Fraud-related tasks eliminated annually
Decrease in pricing
Founded by Jay Williams in 2014 with just £200 and a passion for underground streetwear, Hoodrich is now the fastest growing urban inspired streetwear brand in the UK. Brand ambassadors, such as music producer Fumez the Engineer and rapper K-Trap, have aided in Hoodrich’s exponential growth, as well as collaborations with JD Sports and Footasylum and other large sports retailers. The brand has been spotted on the likes of 50 Cent, Ashley Walters, Giggs and Birmingham’s own Mist and Jaykae. With the launch of Hoodrich Women’s and an increasing presence in the US & Europe, Hoodrich is gearing up to be one of the premium brands in underground streetwear apparel.
The Fraud Problem
Cyber attacks are becoming increasingly common and more sophisticated, and since the COVID19 pandemic consumers are shopping online more frequently. The rise in both trends left eCommerce businesses more vulnerable than ever to fraud. Fashion retail has been a major target for fraudsters and most vulnerable in that category are sellers of streetwear. The recent surge in the popularity of streetwear, and the resalability of hip high-end merchandise render streetwear a prime target of eCommerce fraud. In the words of Stefan Larsson*, chief executive of PVH Corporation, the parent company of Calvin Klein and Tommy Hilfiger: “Whatever cyber protection you had last year, last quarter, last month, yesterday, it’s not going to be enough for tomorrow.”
Natalie Tobias, eCommerce Manager at Hoodrich, can attest to the accuracy of Stefan Larsson’s statement. Brought on to help the rapidly expanding company, quelling the mushrooming volume of eCommerce fraud that came along with such explosive growth quickly became one of Natalie’s primary tasks.
The First Attempt
Prior to assuming her position at the company, Hoodrich had selected Clearsale to help combat fraud, lured by the promise of decision accuracy and a low false positive rate. While the solution did catch a lot of fraudulent orders, Natalie and her team spent an inordinate amount of time handling frustrated customers who were wrongly identified as fraudsters by Clearsale, as well as collecting evidence to fight chargeback claims. For every falsely rejected customer, Natalie and her team had to submit supporting evidence to Clearsale that the customer was legitimate. Their communication was so frequent that Natalie came to consider her Clearsale rep as her friend.
“We had a continuous never-ending crisis that I was in the middle of between my customers and Clearsale”
Another challenge the Hoodrich team faced with their current fraud prevention setup was challenges with fulfillment. Every time an order went under review, they had to ensure their fulfillment company did not ship out the order, and once the review was complete, had to notify them that the order was safe to ship. If a step was forgotten, it would often result in a chargeback or shipping delays. This setup was causing losses to Hoodrich in terms of chargebacks, missed revenue, and time spent on managing all the back and forth.
When frustrated customers sharing their negative buying experience on reviews sites such as Trustpilot started increasing, Natalie Tobias knew that the company needed to find a more precise and automated fraud prevention solution that would allow herself and her teams to completely remove themselves from the fraud detection and prevention process, including manually reviewing orders, dealing with rejected customers, and the tedious process of gathering chargeback evidence.
Ben Smalley, the co-founder of Airbox Fulfillment, reached out to Natalie and suggested she consider switching fraud solutions to NoFraud. Having a front seat to the operational inefficiencies Hoodrich was facing, Ben thought they could benefit from NoFraud’s integration within Shopify that canceled fraudulent orders before they reached fulfillment, which worked really smoothly with their other customers using NoFraud. After reading the reviews on the Shopify app store and speaking with the NoFraud team to understand their product fully, Natalie realized that NoFraud is likely a better option. Upon hearing how much less expensive their solution was, she decided to give NoFraud a try. With the guidance of NoFraud’s integrations team, installation and setup were completed in under an hour.
The NoFraud Difference
Initially, Natalie carefully monitored the performance of the NoFraud system. She was impressed by the speed, ease, and accuracy of the solution. In one week alone, the NoFraud system blocked over $27K in fraudulent orders without rejecting legitimate sales.
Hoodrich used to receive five to ten emails and calls per day from angry customers asking about their canceled orders. With NoFraud those complaints have virtually disappeared. What used to cost Natalie eight to ten hours each week to resolve, is now completely outsourced to the NoFraud automated solution and teams. Convinced that she found the right partner, Natalie was able to step out of the fraud process entirely and focus on what she and her team does best: helping and delighting customers.
“Switching to NoFraud is a ‘no-brainer.’ The system works incredibly well, it costs less than anything else we tried and does a way better job! Most importantly it completely eliminates my involvement in the fraud management process. I am thrilled with NoFraud and so happy that we chose to partner with them.”Natalie Tobias
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