Episode 5 Summary
On this episode of Hair Biz Radio Mikey and Zakiyrah discuss consumer fraud.
Contest – Winner Chosen on 11/23/17
In this episode, you have to listen to find out how we are giving away a free 1-Year membership to Dropship Bundles!
With any business, you often plateau and then don’t see growth for six months at a time or so.
No matter what it is that you’re launching, if you take the same principles that you used in the beginning, you can create many businesses.
Nicki Minaj brought back extremely long hair.
If you’re going to have long strands of hair, it’s important to have thick strands of hair so it doesn’t break.
The worst part of the hair industry is consumer fraud, and it’s prevalent in the hair industry.
A lot of the time, scammers get away with fraud because small business owners don’t have policies and procedures in place like bigger companies do.
There may be times when orders come through smoothly, and then you get hit with a chargeback on PayPal.
We will discuss how to deal with this further.
What does Private Label Extensions do:
They do not allow online orders for in-store pickup.
The checkout has billing and shipping in one column to avoid someone with a stolen credit card putting different billing and shipping addresses.
It’s difficult to catch these people.
If they want to ship something to a different address, you have to check out with PayPal and your address must be a PayPal confirmed address.
This gives the seller a ͞seller protected͟ guarantee.
If someone moves, they have to call the credit card company and provide the new address.
When you do get a chargeback on PayPal, you need to be attentive to it and provide all the information they need quickly.
You’ll need to provide, tracking, billing, and shipping and other verifications.
If your order is over $300 or look fraudulent or is a new customer, Private Label Extensions does verification to match information.
Use PCI compliant systems.
It makes credit card processors looks bad when chargebacks come through, so several payment processors won’t work with the hair extension industry anymore including:
Processors that still work with the hair industry:
PayPal, Square, Authorize.net
If business owners work together to help reduce fraud, the hair industry may be able to get out of the high-risk category.
The magic number is 1%. If 1% of your orders are chargebacks, PayPal will lock your account and hold back 50% of your funds, this makes it difficult for you to run a business.
People committing fraud often target small companies.
They are bold and will order over and over.
Fraudsters will often get express shipping to get the product shipped out as fast as possible so you lose control of the hair.
Look at the names and take them into consideration.
Mikey created a website called Consumer Fraud Agency.
Create a free account and list the address your product was sent to and use the email.
You can copy/paste the email in search and the result will come up on consumerfraudagency.com.
If you’re selling retail and people are buying multiple bundles at retail price, that’s a red flag.
If they’re purchasing that much in retail, they could go purchase wholesale.
They’re trying to buy into the business owner wanting to make money by having what looks like a big order.
Hair Biz Radio is doing a giveaway
Leave an honest review of this podcast on whatever platform you’re listening on.
Leave a comment on the episode 5 show notes about topics you’d like to hear on the podcast.
You could win a one-year membership to dropshipbundles.com.
Look into ways to repurpose any content you’re creating and use it on multiple channels like Facebook, YouTube or your blog.
Creating an email list is extremely important
Sign up for MailChimp, the first 2,000 subscribers are 100% free.
Also available on mobile in app form to get an email address and subscribe on the g