For decades, ecommerce has been growing. Recent studies show that the total sales for 2017 reach up to $2.29 trillion. Unfortunately, conversion rates are decreasing.
What is the conversion rate? It is considered the percentage of site visitors who complete a purchase. Conversion rate differs between industries. Food, tobacco, and beverages, for example, is around 4.59%, while in the health and beauty measures around 3.80%. In both electronics and apparel, the rate is approximately 3.50%. In the home and garden, it’s 3.27.
When it comes to card abandonment in 2016, it’s 77.24%. This means over ¾ of online shoppers abandon their cart before payment, giving ecommerce sites a big headache.
With the given statistics, internet retailers have been finding ways to decrease cart abandonment rates. However, the process can be a challenge to startups and even big companies.
Worry no more! Here are a few experts-recommended tips to optimize your online store for payment processing:
Streamline the Payment Process
According to experts, complex checkout processes are the culprit of 39% of cart abandonment in the U.S. Iit’s wise to ensure a simple payment to increase conversion rates. The more convenient the checkout process, the higher the conversion.
How to get started? Good question! All you have to do is to implement one-click checkout. Amazon and other industry giants have adapted one-click payments. So, customers only need to enter essential payment details.
How about the safety of the data? Well, it’s stored with the Payment Service Provider. It is then tokenized for future use on a particular ecommerce. Aside from fast checkout, customers can now enjoy hassle-free and secure procedures.
After that, don’t forget to test your page to identify which elements are effective. You can present different versions of a webpage to customers. It helps you determine where you are losing your prospects and identify the elements that require an update.
Optimize Security to Ascertain and Minimize Fraudulent Transactions
When optimizing your online store for payment processing, there are many things to consider. One is the security in your payment system. But tight security can lead to declined legitimate payments, affecting your profits.
To maximize fraud identification and avoid the decline of valid transactions, take advantage of a PCI DSS payment service provider. PSP with the integration of PCI DSS standards can provide ecommerce a high level of security against any fraudulent transaction. They can also decrease the number of false positives.
Payment service provides also incorporate cutting-edge technology to combat fraud. Not only does the system examine historical data, but it also analyzes the trends. This increases an online store’s predictive capabilities to reduce fraudulent activity.
Incorporate an Omnichannel Payment Option into your System
Omnichannel payment can be a basic thing to some. Unfortunately, it can be difficult for new online stores. What does it mean? Omnichannel retail refers to shopping experiences where ecommerce sites complement each other.
For example, potential visitors browse a shop and see their favorite pair of shoes. So, they may add the product to cart and decide to a brick-and-mortar shop. Then, they wear it to ascertain the comfort level. Depending on the result, they will likely purchase the shoes at the nearby location or ecommerce site.
According to the recent Harvard Business Review, the omnichannel client has a higher conversion rate. While they spend approximately 4% in a brick-and-mortar shop, their online shopping is around 10% more than a single-channel customer.
To provide an omnichannel experience, allow easy and secure shopping with the use of different payment channels. It can be thru your shop, mobile device, or ecommerce. Each of these channels should accept a range of payment methods, from e-wallets, mobile payments to a credit card.
With a qualified PSP, they can assist you in improving client satisfaction, retention, and conversion to name a few.
Here are some of the other advantages it can provide:
- Seamless and Convenient Experience
Whether customers try a product before purchase or pay for an item, they tend to switch between different channels. This flexibility will improve their experience, increase buying decisions, and boost customer satisfaction.
- Optimize Available Resources and Minimize Workload
Omnichannel retailing requires ecommerce to allocate workforce management or centralized inventory across a range of channels. A professional PSP enables the analysis of the resource requirements and the data collection for every channel. They will also ensure maximum resource allocation. So, hiring more customer service representatives and shortening shipping can result in excellent customer care.
- Offer Valuable Data from Online or In-Store Transactions
The opportunity to analyze data at the customer level can allow retailers to gain information about consumer trends. It can even help startups personalize their marketing techniques and boost their conversion.
By offering a seamless or secure payment to customers, online shops can generate leads, acquire a pool of customers, and decrease shopping cart abandonment. But with the lack of time and hectic schedule, it’s ideal for counting on a capable PSP. Not only can they offer these capabilities, but they can also provide the options for incorporating omnichannel checkout.
Ask for Important Details
When building an email list, you limit the amount of data you request from your audience. Payment processing is no exception. Filling out a form with unnecessary information can affect lead generation and ROI. Adding a list of fields to answer can be disappointing.
Nowadays, people have a hectic schedule. When they make a purchase online, they want to run thru the checkout as quickly as possible.
Approximately 11% of US adults abandoned a purchase online because ecommerce asked for any information according to a report published by Forrester.
To guarantee that you don’t lose potential prospects, a simple and accurate payment form is an excellent option. When you need to ask their phone number, tell your reason.
The checkout process does not need to be complicated. It should be convenient and stress-free. Whether your sales or pool of customers is low, optimize your online store for effective and fast payment processing. That’s it! Enjoy a constant web traffic and make your dreams happen today!