Credo Beauty Case Study
Credo Beauty Eliminates Reseller Abuse and Return Fraud, Grows Revenue by 2.6% With Wyllo
Key Results
Credo, a leader in clean beauty
Credo Beauty is a leader in clean beauty, committed to transparent ingredient sourcing, sustainable packaging, and ethical standards. With one of the strictest definitions of “clean beauty” globally, Credo has built a reputation around customer trust and a high-quality shopping experience. However, as the brand grew, it encountered complex fraud challenges — particularly in managing reseller fraud and chargebacks — that strained resources and impacted revenue.
See Our Accurate Real-Time Fraud Screening for ecommerce in Action
See Our Accurate Real-Time Fraud Screening for ecommerce in Action
Challenges
Top 4 Challenges
As Credo Beauty’s popularity surged, the brand faced a series of challenges that threatened its ability to maintain efficient operations and serve loyal customers. These challenges burdened the team, placing significant pressure on Credo’s resources.
1. Reseller Abuse Attacks
As Credo’s popularity and demand grew, it became a target for unauthorized resellers purchasing products in bulk to resell at inflated prices. These attacks came in waves, sometimes totaling $15,000–$20,000 worth of purchases in a single week. Resellers would deplete Credo’s inventory, leaving genuine customers without access to key products. Reseller purchases disrupted Credo’s supply chain and forced the brand to restock more frequently, increasing operational costs and limiting availability for loyal customers. Resellers also threatened Credo’s brand reputation, as their actions could lead to higher product prices and undermine the trust that Credo had built with its customer base.
2. Return Fraud/Refund Abuse
Return fraud posed a significant challenge for Credo Beauty, leading to revenue losses, inventory disruptions, and operational strain. Customers exploited policies through “wardrobing,” claiming “item not received,” and excessive returns, rendering products unsellable and skewing stock data. Manual reviews and restocking costs further strained resources, diverting attention from customer experience initiatives. These issues underscored the need for a solution to block abusive behaviors, protect revenue, and maintain operational efficiency while preserving a fair return process for loyal customers.
3. High Chargeback Volume
Ahead of one of their busiest seasons, Credo faced an overwhelming 3,500 chargebacks in a month, creating a severe financial and operational strain. This high volume of chargebacks was driven by fraudulent transactions that were difficult to detect and prevent with Credo’s existing tools. Each chargeback represented not only a loss in revenue but also additional fees and administrative efforts to dispute charges, consuming valuable resources that could have been invested elsewhere. The scale of chargebacks exposed the limitations of Credo’s fraud prevention capabilities, underscoring the need for a more advanced, automated solution.
4. Operational Strain on CX Team
Without an efficient fraud prevention system, Credo’s customer experience team found itself bogged down by the need to manually review numerous suspicious orders daily. This task required significant time and effort, preventing the team from focusing on high-value activities like responding to customer inquiries, enhancing loyalty programs, and improving the overall shopping experience. The CX team’s focus on fraud reviews created a bottleneck in Credo’s operations, limiting their ability to work on initiatives that could drive long-term growth and customer retention. As a result, managing fraud became a burden on resources that were crucial for Credo’s strategic priorities.
Why Wyllo?
Seemless Integration
Credo Beauty implemented Wyllo to address these fraud-related challenges. The seamless integration with Shopify Plus allowed Credo to launch quickly, and Wyllos customization options made it possible to set specific fraud rules to minimize reseller abuse and reduce chargeback risk. Here are the top four reasons Credo chose Wyllo.
1. Flexible, Customizable Fraud Detection
Wyllo’s tailored fraud rules allowed Credo to define specific thresholds for bulk purchases, automatically blocking unauthorized resellers without impacting legitimate customer orders. This solution gave Credo confidence in managing its inventory for genuine customers, reducing product stockouts caused by resellers and preserving availability for loyal shoppers. By focusing fraud detection on reseller behaviors, Wyllo minimized abuse, securing the brand’s valuable products for real buyers and preserving customer trust.
2. Automated Order Screening With Accurate Approvals and Denials
Wyllo’s system streamlined fraud checks by automatically approving legitimate orders and blocking suspicious ones that could lead to chargebacks or inventory abuse. This automated process saved Credo’s team from time-consuming manual reviews, freeing up resources and allowing them to focus on core business functions. With a sophisticated system ensuring the right orders passed through, Credo enhanced both its security and customer experience without adding operational friction.
3. Chargeback Prevention
Wyllo’s proactive fraud detection helped Credo avoid chargebacks by identifying and blocking fraudulent orders before they reached fulfillment. Previously, Credo faced thousands of chargebacks monthly, creating a substantial revenue drain and operational challenge. By leveraging Wyllo’s advanced fraud detection, Credo achieved significant chargeback reduction, reinforcing the brand’s bottom line and providing financial security as it grew.
4. Operational Efficiency Gains
Automated fraud reviews through Wyllo significantly reduced the manual workload for Credo’s CX team. Hours previously spent reviewing suspicious transactions were reallocated to strategic initiatives that drove customer engagement and satisfaction. By freeing the CX team from repetitive fraud checks, Credo enhanced its ability to deliver personalized service, strengthening customer loyalty and brand reputation.
Results
Beautiful Results With Wyllo
Wyllo has equipped Credo Beauty with a robust suite of fraud prevention tools that not only safeguard revenue but also set the foundation for long-term growth. By streamlining transaction approvals and blocking fraudulent activity, Wyllo contributes directly to Credo’s bottom line and enables a smoother customer experience. The platform’s precision and automation allow Credo to reduce unnecessary operational costs, increase order value, and serve genuine customers without friction. With a proactive approach that enhances customer satisfaction and retention, Wyllo supports Credo’s journey toward higher profitability and positions them for continued success in the competitive ecommerce space.
1. 2.6% Monthly Revenue Increase From Approved Orders
With Wyllo’s precision fraud filters effectively blocking fake customers, more authentic orders pass through — orders that Shopify’s filters would otherwise block or flag for review. This improvement has directly contributed to an additional 2.6% in revenue for the company. By reducing obstacles for legitimate transactions, Credo now serves more customers seamlessly, boosting both revenue and customer satisfaction.
2. Saving $8,500 Monthly by Preventing Chargebacks, Reseller Abuse, and Return Fraud
With Wyllo blocking an estimated $8,500 per month in chargebacks (plus, added fees) by preemptively catching fraudulent orders, Credo avoids significant financial setbacks from chargeback costs, revenue loss, and added strain on resources — allowing them to retain more revenue. Wyllo’s advanced technology also helps Credo successfully prevent widespread reseller fraud attacks that previously reached as high as $20,000. Additionally, Wyllo’s customizable rules effectively mitigate return fraud by identifying and blocking patterns of abuse, such as “wardrobing” and false “item not received” claims, ensuring a fair return policy while protecting profitability and operational efficiency.
3. 55+ Hours Saved in Monthly Operational Efficiency
With Wyllo’s highly precise technology, the need for manual reviews has drastically decreased, as fewer transactions require intervention. For those that do, the Wyllo team handles the reviews directly, freeing Credo’s CX team from these time-consuming tasks. This streamlined approach saves the team over 55 hours each month, allowing them to focus on high-impact initiatives like customer engagement and loyalty. By alleviating manual review demands, Credo’s CX team can now prioritize strategic goals, greatly enhancing the overall customer experience.
Wyllo has empowered Credo Beauty to protect its revenue, reduce risk, and streamline operations, all while enhancing the customer experience. With Wyllo handling reseller fraud and chargebacks, Credo’s team has reclaimed valuable time to focus on growth and customer engagement. For high-growth ecommerce brands, Wyllo is an essential tool for ensuring profitability and operational efficiency without compromising customer satisfaction.
