Zero Fake Orders: A Customer-Friendly Strategy for Bangladeshi E-Commerce

Online shopping is becoming increasingly popular in Bangladesh. Thousands of people are exploring what e-commerce has to offer. Cash on delivery (COD) or home delivery makes shopping easy and comfortable. But as the market expands, so does the number of fake orders. These orders are causing profit loss and operational challenges. Some mid-sized platforms share that fake or invalid orders constitute up to 10% of the total orders, which is a massive drain on revenue.

What Happens to a Market Full of COD Transactions?

• Wasted marketing spend
• High return-to-origin (RTO) and courier costs
• Frustrated operations teams
• Loss of trust from genuine customers

Many online stores try fighting fake orders by using courier fraud databases, checking whether a phone number has a “good delivery history.” Although this is a step forward, it is still insufficient and may even create new problems.

In This Article, You Will Learn:

1. Why courier statistics alone can fail
2. How competitors misuse “trusted” phone numbers
3. Why OTP verification, account creation, and small advance payments are powerful tools
4. How AI can prevent fake orders without frustrating loyal customers
5. A layered plan that any Bangladesh e-commerce business can implement

The Real Cost of Fake Orders

Incorrect orders in Bangladesh usually appear in these forms:

• Pranks: Random people placing orders for fun
• Competitor harassment: Rivals placing fake orders to increase your RTO
• Non-serious COD buyers: Customers who order impulsively but never receive or pay
• Organized fraud: Exploiting discounts, free shipping, or COD loopholes

Fake orders create serious challenges:

• Higher cancellation and RTO rates
• Extra cost for confirmation calls
• Cash flow disruption
• Demoralized delivery teams and call center staff

Courier statistics help—but relying on them alone is risky.

Why Courier Statistics Are Not Enough

Many platforms assume:

"If a phone number has a good delivery history, it must be safe."

But imagine this:

Customer A has a perfect delivery record. A competitor steals their number and places hundreds of fake orders. Your system marks it as “trusted,” so every order gets approved.

The Outcome?

• Customer A receives multiple confirmation calls
• They become irritated and stop buying from you
• Your competitor successfully creates chaos

This proves that courier statistics alone cannot guarantee safety.

Step 1: OTP-Based Phone Verification

One of the most effective methods to prevent fake orders is OTP verification.

Advantages:

• Only the real owner of the phone number can verify the account
• Prank and competitor orders stop immediately
• You build a verified customer database for future marketing

Smart Implementation:

• First-time buyers must verify with OTP
• Use OTP for high-value orders
• Trigger OTP when delivery locations look suspicious

This ensures strict checks where needed but avoids disturbing loyal customers.

Step 2: Account Creation Before Ordering

Some owners fear that account creation will reduce customers. In reality, a smooth mobile-first signup boosts trust and reduces fraud.

Advantages:

• Buyers become more committed
• Better customer data and alternate contacts
• Fraud patterns become easier to identify (same device, multiple accounts, same IP, etc.)

Courier data alone is limited — competitors can misuse genuine customer numbers. Account creation prevents this loophole.

Step 3: Partial Payment (Smart COD)

COD is popular in Bangladesh, so removing it is impossible. But partial payment dramatically reduces fake orders.

Benefits of Partial Payment:

• Filters out non-serious buyers
• Reduces RTO rates
• Customers become more responsible

Only risky orders require partial payment — not everyone.

DevzCart's AI-Based Fraud Prevention

DevzCart uses a 3-layer defense system:

• OTP Verification
• Account-Based Order
• AI Risk Scoring

How AI Risk Scoring Works

The AI checks:

• Customer Type (new or returning)
• Order Amount
• Delivery area history
• Order time
• Cancel / RTO history
• Device & IP patterns

Risk Levels:

• Low Risk: OTP + optional partial payment
• Medium Risk: OTP required
• High Risk: OTP + partial payment + manual review

Low Friction for Loyal Customers

Repeat buyers are not asked for OTP or payment again and again. A trust score ensures smooth shopping for them.

Admin Mental Block: “Customers Will Be Annoyed”

Many fear OTP will reduce orders.

The truth:

• Without fraud control, your business may collapse in 6 months
• Long-term profit matters more than losing 1–2 orders today
• Customers now expect security — OTP is normal everywhere

Practical Implementation Plan

1. Identify your problem: total orders, cancel rate, RTO rate, fake order %
2. Implement OTP verification
3. Enable fast mobile account creation
4. Apply smart partial payment
5. Upgrade to AI-based fraud detection

Q1: What Can AI Do?

AI identifies risky orders while keeping the loyal customers’ experience smooth. It analyzes location, timing, device, customer history, and order value.

We only need small changes to protect the entire market.

Final Thoughts

Fake orders should not be accepted as a normal business loss. Instead, they are barriers to growth.

To protect your e-commerce business:

• Use OTP verification
• Promote account-based ordering
• Adopt smart partial payments
• Use AI-driven risk scoring

Customers value trust and security — and systems that protect both shoppers and businesses will always win.