Rules of order have always been an important part of an organization. One of the most versatile features of Protify is the ability to create fully customizable order rules. These ordering rules are a great tool to simplify order processing, but like any tool, they are most effective in the hands of a skilled craftsman. Fortunately, we've compiled a short list of best practices for creating your order rules and improving order execution. Read on to learn how to become a master of order rules!

Assessing Your Risk Tolerance

Simply put, risk tolerance is the level of risk an investor is willing to take. Defining your specific risk management philosophy is the first step in creating appropriate rules of engagement. Just as every e-commerce business is unique, every business has its own risk tolerance. This may depend on your industry, your past susceptibility to fraud, and your personal comfort level.

For example, someone with a high risk tolerance is willing to take the risk of losing money in order to have the possibility of a better outcome. Conservative investors or investors with a low risk tolerance prefer investments that retain their original investment. Someone with a low risk tolerance might feel safe creating blanket order rules to approve low-risk orders, and the latter might feel more confident implementing a validation step before approving any risk-level order.

The Shape of Hierarchy

Order rules have been and will always be the key to success. Big messes can lead to failure. Remember that the collation workflow runs the first rule that satisfies the condition and then exits the process, which means that none of the underlying collations will run. Then decide which element or elements are the most important. But don't panic - an easy way to do this is to list all the items you think you might need. There is a simple set of guidelines to follow when setting up a collation hierarchy.

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Positive List: Your first order rule should be any rule that identifies known good customers whose orders will be automatically approved. Placing these whitelist rules at the top of the list ensures that orders from repeat customers are not erroneously hindered by other ordering rules.

Negative List: Next should be any order rules that cancel bad customer orders. Blacklist rules automatically cancel orders placed by known scammers or other users who have caused you problems in the past.

Verification: Once your whitelist and blacklist rules approve or cancel an order from a known customer, the validation rule should initiate the customer validation process for any remaining orders that meet certain criteria. We recommend not vetting all customers, but customer vetting for orders that are in a gray area: too suspicious to get immediate approval, but not enough to cancel immediately.

Everything Else: All other collations not listed above should be at the end of the collation hierarchy. If you have blanket order rules that automatically approve or cancel orders based on risk level, make sure to put them last in the order processing workflow to prevent them from interfering with previous rules.

Manageable Order Rules

Automation of the ordering process ensures that no steps are missed. While Protify allows you to create order rules with multiple conditions and complex logic, that doesn't mean you have to wrap the entire order processing into a single order rule. As a general rule, each collation should play a specific role. This prevents user errors due to overly complex rules, costly and inefficient manual processes. You can also easily schedule and configure your order rules if you need to change them in the future.

Stay Updated

As your online business grows, your needs as a merchant may evolve as well. Taking the time to fix problems before they happen can prevent costly returns. Periodically revisit your Order Rules to make sure that they are still attuned to your customer base and risk tolerance—and if not, update them accordingly. You can configure them whenever and however you’d like.

Automation Saves You Time

Automation can accomplish many tasks much faster than humans, and since machines don’t need coffee or lunch breaks, they can work around the clock. If you find that your current order rules configuration is just adding to the order validation headache rather than relieving it, then some changes are required. Don't be afraid to experiment until you find a collation that works for you. Your business can benefit from automation in many different ways. For example: increasing efficiency, standardizing processes, reducing errors, increases productivity, and improves compliance. In the end, automation is great for your bottom line.