Acquired by THG in January 2021, Dermstore migrated to the THG Ingenuity platform in July of the same year. Selling over 350 skincare and beauty brands globally, the business prides itself on expert-led guidance and premium products.

With the introduction of THG Ingenuity's proprietary fraud detection solution, Dermstore was able to:

• Recover substantial lost revenue.
• Reduce fraudulent transactions.
• Improve customer trust and satisfaction at checkout.

Challenges Facing Dermstore Pre-Migration

Before it migrated to THG Ingenuity, Dermstore faced several key challenges:

• A high chargeback rate of 3%, placing the brand at risk of penalties from card issuers.
• An outdated and inefficient fraud detection system.
• Excessive false positives, leading to legitimate orders being wrongly declined.

Online fraud was proving to be a significant barrier to scaling Dermstore’s ecommerce presence. A new data-led approach was urgently needed.

£1.5M Recouped in Revenue

THG Ingenuity's intelligent fraud detection solution enabled Dermstore to take back control. Three strategic priorities drove success: 

• Automating and optimising, reducing reliance on manual checks
• Lower chargebacks to stay compliant and avoid costly penalty programs from Visa & Worldpay
• Minimizing false positives, ensuring genuine customers weren’t mistakenly blocked

These measures helped Dermstore streamline operations, protect margins, and deliver a smoother experience for shoppers.

63.8% Reduction in Fraud Check Delays

Prior to migration, a significant share of Dermstore’s orders - 9.24% referral rate - required manual fraud review. Orders would sit in review queues for an average of 29 hours, leading to delays and customer frustration.

After implementing THG’s solutions:

• The manual review rate dropped by 68%
• Queue time reduced from 29 hours to just 10 hours
• Orders were approved and shipped faster, improving both satisfaction and retention

96.6% Reduction in Chargeback Rate

During the 2020 holiday peak, Dermstore was hit with a surge in chargebacks, reaching a high-risk level of 3%. Within just four months of moving to THG Ingenuity, the brand's chargeback rate reduced to an all-time low of 0.1%.

This not only protected Dermstore from payment provider penalties but also safeguarded its bottom line.

81.5% Reduction in False Positive Rejection Rate

False positives – legitimate orders wrongly flagged as fraud – were costing Dermstore substantial revenue.

Before migration, the rejection rate sat at 34%.

With THG Ingenuity’s advanced data modelling and decision-making tools, that figure dropped to just 6.3%, making a 81.5% reduction.

The impact?

• Far fewer lost sales due to incorrect deadlines
• Increased order approvals and higher overall revenue
• A frictionless checkout experience for legitimate customers

By implementing THG Ingenuity’s fraud detection solution, Dermstore has future-proofed its ecommerce operations. With better order approval rates, faster fulfillment, and more accurate fraud prevention, the brand is now delivering a more secure and satisfying shopping experience, at scale.