Thoughts on Yahoo Store Automatic Order Processing

Posted on June 24th, 2010 by Matt Sampson - Colorado Web Solutions

Lately we’ve had a few clients interested in Yahoo’s automatic ordering processing. Each client has expressed concern that reviewing each order will end up being very time consuming. In all but one case we convinced the client that manual order review is the better way to go.

Yahoo does have the ability allow for automatic order processing. On the surface this seems like a no-brainer as this feature would dramatically cut down on the time spent managing your site. However on closer inspection, manually reviewing each order is time well spent.

The biggest drawback to auto-processing is the increased likelihood of receiving fraudulent orders. If you chose to use auto-processing, Yahoo’s Risk Tools can’t be applied. The Risk Tools module is invaluable as it will allow you to configure various rules which will verify AVS and CVV rules for each transaction. Sure, you’ll need to review each order manually as a result, however you’ll likely end up saving yourself money and inventory.

For a number of years I ran a fairly successful Yahoo store. We did have Risk Tools enabled and the result was on a weekly basis we stopped fraudulent orders from shipping. The fraudulent orders came in many different formats; some with correct addresses, but incorrect cards. Others would have the correct card and address but the CVV wouldn’t match.

We always had a dedicated customer service representative contact the appropriate bank in all such cases and saved ourselves thousands of dollars as a result. In your case, you might not have a CS representative to do the checking for you, but you’ll be glad when you’ve stopped an order that could cost you hundreds of dollars in lost merchandise.