It’s always something, right?
In 2025, it’s actually two things — two trends that are converging to test the mettle of the most experienced ecommerce leaders. First, economic uncertainty is ramping up in the face of an ongoing trade war and flagging consumer confidence. Second, the acceleration in the sophistication of organized fraud rings is continuing at a relentless pace.
The rise of external challenges requires leaders to work smarter. In the face of uncertainty, successful leaders look to lock down that which they can control in order to free up mindshare, staffing and financial resources to confront and manage those factors that are not so much within their control.
Shopify merchants begin in a strong position by hosting their online storefronts on a leading ecommerce platform that provides maximum flexibility with a host of compatible solutions that serve the entire shopping journey.
Fraud tools for Shopify can optimize revenue
Several points along that journey provide rich potential to improve both the top line and bottom line. When it comes to fraud protection on Shopify, successful merchants are looking for solutions that increase approval rates and reduce false declines — while also potentially lowering operating costs.
Given the myriad of approaches to fraud protection available to Shopify merchants, it’s important that retail leaders take the time to carefully consider their priorities in protecting their businesses while also providing a flawless experience for customers coming to shop and buy on their sites.
Like ecommerce itself, innovation in online fraud protection has been moving rapidly, quickly iterating from a very manual process to one in which artificial intelligence and data-driven machine learning are at the forefront. Such future-focused solutions provide the opportunity to maximize revenue while offering protection from account creation through checkout and all the way to returns and refunds, if needed.
Merchants selling on Shopify have already made a smart choice. The company is one of ecommerce’s leading growth stories and the mass migration of retailers to the platform is not without reason. Altogether, merchants on the Shopify platform saw sales increase 24% year over year in 2024.
Fraud pressure is rising with Shopify’s growth
The significant subset of Shopify merchants relying on Signifyd’s Commerce Protection Platform (Signifyd protected $8 billion in Shopify transactions last year) reflected that growth, including an 18% increase in order count and a 6% rise in average order value, according to Signifyd data.
Where growth goes, fraud follows. Fraud pressure — or the number of online orders deemed very risky by Signifyd’s machine learning models — is up 14% year over year among our customers selling on Shopify. And the value of merchandise being sold on Shopify and targeted by fraudsters is up 50% over the past year.
Furthermore, consumer abuse attempts are up 12% year-over-year among Shopify sellers on Signifyd’s network.
So, choosing the right fraud protection is more important than ever for Shopify merchants. The Shopify App Store offers a wide range of fraud protections including point solutions that focus on one aspect of fraud and comprehensive solutions like Signifyd’s Complete Chargeback Protection.
The graphic below offers a comparison of the different flavors of fraud protection currently available.
Signifyd represents a new generation of fraud prevention on Shopify
Signifyd is among the newest generation of commerce protection providers. Our Commerce Protection Platform increases approval rates by an average of up to 8%. We have extensive experience helping Shopify merchants increase their conversions while protecting them from fraud and abuse that appears to be coming from all sides these days.
In particular, Signifyd not only protects orders purchased through Shopify’s Shop Pay digital wallet, but also extends fraud prevention on Shopify to any other payment method on the platform. That allows merchants to offer a wide variety of payment methods to ensure they are accepting their customers’ preferred payments.
And when Signifyd approves a transaction, it offers a financial guarantee against all manner of chargebacks, including the entire cost of fraud.
Signifyd’s protection also extends beyond payment fraud to protect non-fraud chargebacks such as false item not received claims or false claims that a product that arrived was damaged or did not live up to its description. And Signifyd offers merchants the ability to provide intelligent returns with its Instant Refunds and Returns Insights based on an understanding of the identity and intent behind every transaction on its network.
Shopify and Signifyd bring top customer experience and top fraud protection together
Shopify and Signifyd have proven themselves better together in providing Shopify merchants with the fraud and risk protection they need while still providing the kind of brilliant customer experience that Shopify merchants are known for.
When rapidly growing health and wellness brand Cymbiotika was looking for a fraud solution that could scale with them on Shopify, they turned to Signifyd. Together we were able to reduce their chargebacks by 93% and increase their approval rate to 98%. Signifyd’s solutions also provided Cymbotika with a way to put a stop to reseller abuse, which was threatening the company’s brand reputation.
Apparel retailer Rainbow Shops was attracted to Shopify for its Amazon-like checkout features. As part of its replatforming, Rainbow Shops realized it needed a fraud protection solution with the same kind of horsepower. Rainbow chose Shopify and Signifyd together.
With Signifyd as part of its tech stack, Rainbow achieved an approval rate of 99.5%. Its chargebacks were cut in half. Its win rate for chargebacks hit 50% by relying on Signifyd’s Chargeback Recovery.
Shopify merchants have found success with Signifyd fraud protection
Shopify merchant Rad Power Bikes found it was accepting 10% more orders once it deployed Signifyd’s solution and took advantage of its guarantee. Furniture brand Jerome’s lowered its operational expenditures, reducing its manual review by 99% once it was relying on Signifyd. And the list goes on.
Retail leaders looking at the current economic climate know they can’t leave anything to chance. Every conversion matters and turning away good customers who might become a life-long customer is unacceptable anytime, but particularly when economic headwinds are gusting.
The solutions to put online retailers on steady footing are out there. And Signifyd and Shopify together are ready to help merchants withstand the challenges and take full advantage of the opportunities that the coming months bring.
Photo by Getty Images
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