St. Paul, 01/11/2023 – In a surprising and unexpected move, we announced our decision to Stop Selling Online, leaving customers wondering why such a reputable brand would choose to retreat from the digital marketplace. When you look at the rate of losses of e-commerce due to fraud, it's no wonder.
The decision to halt online sales stemmed from a thorough assessment of numerous factors that culminated in the conclusion that the current online retail landscape no longer aligned with our long-term objectives and brand identity.
It was a difficult and thought-provoking choice; however, we firmly believe it is the right strategic move to ensure sustainable growth and maintain our commitment to customer satisfaction.
Counterfeit Products
One of the prime reasons behind this shift is the increasing prevalence of counterfeit products infiltrating the online marketplace.
As online platforms lack strict regulations and oversight, counterfeiters have taken advantage of this loophole, flooding the market with substandard imitations.
Many buy a counterfeit handbag for $20 on a marketplace, buy an original from MySmallStore for $300, and return the counterfeit bag to MySmallStore for a full refund. We went from 1 fraudulent return per month to 3-4 a week.
Payment Frauds
Another issue that made us stop selling online is credit card fraud which is increasing at high speed. Making MySmallStore run more sophisticated and much more expensive tools to prevent fraud.
Two years ago, we had an average of two fraudulent transactions per month. We have now about five a day!
Despite vigilant efforts to combat these issues, we concluded that protecting customers from these deceptive practices was becoming increasingly challenging without compromising the quality and integrity of our products.
Impact of Fraudulent Activities
We spend more money compensating for losses – the fake products we receive as a return are trashed, and we need to replenish the stock.
Fraud detection and prevention tools are getting more and more expensive. We went from $500 a month to almost $5,000 a month.
The money spent doesn't go toward helping others, such as Homeless Veterans – we had to cut our donations by 50% and thus decided to stop selling online.
MySmallStore Resolution
We decided to redirect our resources to enhance the in-store experience, MySmallStore believes it can better serve its loyal customer base and foster deeper connections with them.
Beyond the financial considerations, we also recognized the importance of personal interaction and the significance of tactile experiences when it comes to certain products.
Many customers relish the opportunity to physically engage with products, especially high-end items where touch and feel play an essential role in purchasing. Online purchases are more often “cool picture and low price,” thus leading to buying a cheap counterfeit product.
By focusing on enhancing the in-store experience, we aim to create an atmosphere that seamlessly blends personalized service and access to their exclusive product offerings.
While our decision to withdraw from the online retail market may seem like a step backward in the digital age, it underscores the company's unwavering commitment to quality, innovation, and customer satisfaction.
It is important to note that despite discontinuing online sales, we will continue to provide customer support services through various channels, ensuring all existing and prospective customers receive the assistance they need.
With this bold move, we seek to reshape the perception of retail by embracing a more personalized and experiential approach, demonstrating that, in an increasingly digital world, there remains irreplaceable gratification in the realm of physical shopping.
Reasons to Stop Selling Online
| Reasons | Implications |
|---|---|
| Proliferation of counterfeit products | Protection of customers from fraud |
| Excessive costs associated with online operations | Focus on profitability and resources |
| Importance of personalized experiences | Enhanced in-store engagement |
| Commitment to quality, innovation, and customer satisfaction | Strengthening customer relationships |
MySmallStore Alternative Online Solution
To continue to help financially homeless veterans, we partnered with several online companies that sell products our physical store customers really love.
Each time you make a purchase from these companies, we receive a commission (a %), and all of it goes to Homeless Veterans. Since we started this program on November 1st, we ‘earned' about $1,200, allowing MySmallStore to offer 30 winter-rated coats like the one in the picture below.
The products we represent are inexpensive, original, and beautiful, not from big brands.
You can easily find a gorgeous handbag for less than $30, and you must see the kids' bag section 🙂 It will make you melt.
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