Ecommerce Chargeback Prevention: Post-Purchase Strategies

Chargebacks cost ecommerce merchants billions in 2025. Each dispute means lost revenue, processing fees, penalty charges, and the risk of losing your merchant account. 

The numbers keep climbing: according to Expert Market, merchants reported an average 19% year‑over‑year increase in chargebacks, and an estimated 75–86% of those disputes are likely cases of friendly fraud (chargeback fraud). 

Most merchants only realize the true impact after margins erode and operational costs spike.

The majority of ecommerce chargebacks do not start with fraud. They start with post-purchase missteps: missed notifications, unclear delivery, or forgotten refunds. 

This guide shows how to build an effective ecommerce chargeback prevention system using real-world tactics and the right automation.

Understanding the ecommerce chargeback prevention challenge

Most ecommerce chargebacks are not caused by fraud, but by preventable post-purchase breakdowns. The true cost goes far beyond the lost sale.

Chargebacks are a growing operational threat. Friendly fraud now accounts for 86% of all disputes. The average chargeback costs $125 when you factor in lost goods, fees, and staff time. Each dispute can take up to 20 hours to resolve, draining resources from your team.

Most prevention guides focus on fraud detection at checkout. However, the majority of chargebacks originate in the 30–90 days after purchase, when customers lose track of orders, miss delivery updates, or encounter unclear refund processes. These post-purchase gaps are where preventable disputes begin.

Hidden costs of chargebacks:

• Lost revenue and goods
• Processing and penalty fees
• Increased merchant account risk
• Staff time spent on dispute management
• Damaged customer trust and lifetime value

To prevent these losses, you need to understand where post-purchase breakdowns occur.

Suggested Read: Shopify Accounting Best Practices

Mapping the post-purchase journey: Key touchpoints to prevent chargebacks

Chargebacks often start at predictable points after checkout. Each post-purchase touchpoint is a potential trigger for disputes or an opportunity for prevention.

The post-purchase journey includes several critical steps. At each, a breakdown can lead to a chargeback:

• Order confirmation: If the customer does not receive a clear, timely confirmation, they may not recognize the charge later
• Shipping updates and tracking: Missed or delayed notifications can cause confusion, leading to "item not received" disputes
• Delivery verification: Lack of proof (such as a signature) makes it difficult to defend against claims of non-delivery
• Returns and refunds: Slow or unclear processes often result in customers disputing charges instead of requesting help
• Renewal reminders (for subscriptions): Failure to notify customers before renewals can trigger "unauthorized charge" disputes

Industry data shows that "item not received" is the most common friendly fraud reason, accounting for 32 percent of cases. Efficient merchants centralize these touchpoints with unified order management dashboards.

Now, let us walk through how to proactively address each of these touchpoints.

Step-by-step: Building your post-purchase chargeback prevention system

Follow these 5 steps to close the gaps that lead to chargebacks.

1. Send clear order confirmations: Deliver immediate, detailed confirmations including order summary, billing descriptor, and support contact. Use templates to ensure consistency and clarity.
2. Automate shipping and delivery notifications: Send tracking numbers and status updates at each shipping milestone. Notify customers of estimated delivery dates and any delays.
3. Require delivery signatures for high-value orders: For orders above a set threshold, require a signature or delivery confirmation. Set up this process with your shipping provider.
4. Simplify and document returns/refunds: Make return and refund policies clear and accessible. Provide confirmation emails for every return or refund processed, including tracking for returned items.
5. Send renewal reminders for subscriptions: Notify customers before subscription renewals or free trial conversions. Include clear instructions for cancellation or changes.

Practical tip: Automate these steps using your order management system to ensure no touchpoint is missed.

Customer example: FlatSpec eliminated the need for three manual data entry roles by automating Amazon and Shopify reconciliation. By syncing multi-channel sales directly to QuickBooks Online, the eyewear importer saves tens of thousands of dollars annually.

Doing this at scale requires automation. Manual management works for small volumes, but breaks down as orders grow. Automation ensures every customer receives timely updates, and every transaction is documented, no matter how many orders you process.

Suggested Read: Shopify EDI Integration

Operations reality: Scaling prevention with automation and documentation

Automation is not just a time-saver; it is the backbone of scalable chargeback prevention.

Manual processes break at scale. As order volume increases, human errors, missed steps, and data silos become inevitable. Staff turnover and inconsistent handoffs lead to gaps in communication and documentation. 

Merchants processing over 100 orders per day often see preventable chargebacks spike due to missed notifications or incomplete records.

Why automation matters:

• Consistent execution: Ensures every post-purchase touchpoint is handled correctly
• Immediate notifications: Sends updates with no lag
• Accurate records: Maintains time-stamped records for every transaction
• Centralized audit trails: Provides fast access for dispute response

A centralized dashboard brings all orders, refunds, and shipping events into one place. This eliminates the need to search across email, spreadsheets, and multiple platforms.

Webgility in action

Webgility connects every order, refund, and shipping update from all channels in real time. Merchants save up to 90 percent of time on reconciliation and maintain complete audit trails, making chargeback defense faster and more reliable. 

For instance, BeeCure leverages Webgility to sync Amazon and Shopify sales directly with QuickBooks. This automation eliminates 40 hours of monthly data entry and accelerates the closing process from one week to just two hours.

With automation in place, focus on best practices for communication and record-keeping.

Best practices for communication and documentation

Prevention and defense both depend on what you say and what you can prove.

Communication best practices:

• Use recognizable billing descriptors: Use names like "BestShoes.com" instead of "XYZ Corp"
• Provide clear support access: Make email, chat, and phone support easy to find
• Confirm policy acceptance: Use checkboxes and receipts to confirm policy delivery

Documentation best practices:

• Time-stamped order confirmations: Proof of authorization
• Shipping updates: Tracking logs contradict "item not received" claims
• Delivery verification: Signatures prove the merchandise reached the customer
• Refund confirmations: Credit memos prove refunds were processed
• Customer communications: Chat and email logs show good-faith efforts

Must-have documentation for chargeback defense:

Table: Documentation Checklist

The more organized these records are, the faster you can respond to a chargeback. Merchants with centralized dashboards retrieve complete evidence within minutes instead of hours spent searching email and spreadsheets. 

This speed often determines whether a chargeback is won or lost.

Platforms like Webgility maintain a centralized record of every transaction, update, and refund so you have what you need when a dispute arises.

With best practices in place, measure your results and refine your approach.

Measuring results: How to track and optimize your chargeback prevention strategy

You cannot improve what you do not measure.

Track these key metrics to monitor and optimize your prevention system:

• Chargeback ratio: Disputes per 100 transactions
• Dispute reason codes: E.g., "item not received", "fraudulent transaction"
• Average resolution time: Time taken to resolve disputes
• Touchpoint success rates: Percentage of orders with confirmed delivery

Use analytics and reporting tools to identify weak spots. For example, a spike in "item not received" disputes signals a need to review shipping updates and delivery confirmations.

Webgility’s tools show chargeback trends, order status, and communication gaps, enabling continuous improvement. After implementing analytics, merchants have reduced chargebacks by up to 33 percent in three months.

To see it in action, get a demo. 

FAQs

What is friendly fraud, and why does it cause so many chargebacks?

Friendly fraud happens when a customer disputes a legitimate purchase, often forgetting the transaction or misunderstanding the process. It now accounts for up to 86 percent of all ecommerce chargebacks.

How can I automate chargeback prevention in my ecommerce store?

Use an order management platform to automate order confirmations, shipping updates, and refund notifications. Automation ensures every customer receives timely communication and every transaction is documented for dispute defense.

What documentation is most important for winning chargeback disputes?

Key documents include order confirmations, shipping and delivery records, refund confirmations, and all customer communications. Centralized dashboards make retrieval fast and reliable.

How do I know if my chargeback prevention strategy is working?

Track your chargeback ratio, dispute reasons, and resolution times. Use analytics to spot trends and adjust your process for better results.