Key Facts: E-Commerce, Chargebacks and How it Impacts Your Business

Chargeback911 posted an article that details key statistics in today's chargeback market. Here are some important takeaways that relate directly to your experience on AuctionNinja. 

Key Facts: Chargebacks are on the rise and it's costing merchants more than ever.

-eCommerce chargebacks rose 222% between Q1 2023 and Q1 2024.

-72% of merchants reported an increase in friendly fraud in 2024.

-Experts project that global chargeback volume will increase by 41% between 2023 and 2026, from 238 million to 337 million.

-In 2025, every dollar stolen from friendly fraud will cost merchants up $4.61 in losses, a staggering 37% jump from five years ago.

-Friendly fraud is now the second biggest fraud threat for merchants (up from third in 2023). 

-80% of chargebacks are fraud-related. This includes both criminal fraud, as well as friendly fraud.

It's important for sellers to know how chargebacks occur. Bidders might initiate chargebacks accidentally, and sometimes they do so with the intent to commit fraud. Accidental friendly fraud happens when someone doesn’t recognize a charge — maybe a family member made the purchase or the billing name looks unfamiliar. Intentional friendly fraud is when someone tries to get their money back on purpose, like regretting a purchase or taking advantage of refund policies. Sometimes bidders will initiate chargebacks due to a failure in shipping fulfillment, or when the seller fails to respond when the authenticity of a listing is in question.

Knowing the difference between these situations can help sellers manage bidder relationships and mitigate chargeback loss. Responding to bidders promptly, providing customer support and maintaining a consistent business name on all documentation (AuctionNinja and payment processor) can help control the rising demand of technically savvy bidders. 

Written by:

Juli Dupont

May 7, 2025     Updated 11:05 AM

Juli is the customer success guru at AuctionNinja, specializing in helping sellers achieve maximum success on the platform. With a background in the estates and acquisitions department at AuctionNinja's parent company, BRG, Juli possesses a deep understanding of the challenges and dynamics of the auctioneering and estate selling industry. Her expertise makes her the go-to person for sellers navigating the ever-changing marketplace. Juli holds a Bachelor of Arts degree in English.

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