PaymentsJournal
No Result
View All Result
SIGN UP
  • Commercial
  • Credit
  • Debit
  • Digital Assets & Crypto
  • Digital Banking
  • Emerging Payments
  • Fraud & Security
  • Merchant
  • Prepaid
PaymentsJournal
  • Commercial
  • Credit
  • Debit
  • Digital Assets & Crypto
  • Digital Banking
  • Emerging Payments
  • Fraud & Security
  • Merchant
  • Prepaid
No Result
View All Result
PaymentsJournal
No Result
View All Result

Conversion Rates in E-Commerce

By Don Apgar
July 21, 2022
in Analysts Coverage, Credit, Debit, E-commerce, Merchant
0
0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn
Conversion Rates in E-Commerce

Conversion rates in e-commerce continue to be a challenge for retailers, and as this article from Chain Store Age points out, keeping the checkout process simple and straightforward is one important way to keep cart abandonment to a minimum.  Just a few years ago, “more is better” was the driving force in payments; retailers should provide choices, and accept any form of payment that the customer wants to use.  However, the growth in alternative payments types like digital wallets, buy now pay later services, crypto, etc., has brought us to the tipping point of that logic.  Presenting too may payments choices during the checkout process can actually confuse shoppers and have a negative impact on conversion rates. 

The easy solution is to simply eliminate any payment type that’s not at least 5% of sales.  At low volume levels, customers aren’t likely to miss not having it available, and the retailer will eliminate another revenue stream to manage.  Like many other things, the easiest solution is often not the best, and when looking at ecommerce conversion some strategy is warranted.  For example, a payment type may have low customer utilization today, but may offer advantages to the retailer in terms of lower costs or better fraud prevention.  In this case, offering a discount or incentive for the consumer to use that payment type may be a net benefit to the retailer, and at the same time improve conversion as consumers are offered an additional incentive at the critical payment juncture.

Omni-channel retailers should also consider the total customer experience across all channels.  A payment type with a low e-commerce utilization rate may be worth keeping around if it has higher utilization rates in offline and mobile channels.  Likewise, offering an incentive to grow a payment type should be done as consistently as possible across all sales channels.

The takeaway is that while simplicity may drive conversion, consistency is the payments experience will optimize customer engagement across all of your sales channels.

Overview by Don Apgar, Director, Merchant Services Advisory Practice at Mercator Advisory Group

0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn
Tags: CheckoutE-commercePaymentsRetailers

    Get the Latest News and Insights Delivered Daily

    Subscribe to the PaymentsJournal Newsletter for exclusive insight and data from Javelin Strategy & Research analysts and industry professionals.

    Must Reads

    Making Real-Time Payments a Reality

    Fulfilling the Promise: Making Real-Time Payments a Reality

    July 10, 2025
    mortgage

    The Rich Benefits of In-House Payment Systems

    July 9, 2025
    digital cards

    Beyond Plastic: Why Digital Cards Are the Future

    July 8, 2025
    What Premium Card Overhauls by Chase and Amex Reveal About the Credit Card Market

    What Premium Card Overhauls by Chase and Amex Reveal About the Credit Card Market

    July 7, 2025
    Rewire Acquires Imagen, Looking at Prepaid Cards for Migrant Workers

    Smells Like Team Spirit: What Makes Cobranded Credit Cards Work

    July 3, 2025
    uk banking outages

    New Continuous Strategies for Battling Account Takeovers

    July 2, 2025
    Fraud Monitoring

    What to Expect When Nacha’s Fraud Monitoring Rules Take Effect

    July 1, 2025
    payments

    Don’t Just React to What’s Next in Payments—Anticipate It

    June 30, 2025

    Linkedin-in X-twitter
    • Commercial
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Digital Banking
    • Commercial
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Digital Banking
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    • About Us
    • Advertise With Us
    • Sign Up for Our Newsletter
    • About Us
    • Advertise With Us
    • Sign Up for Our Newsletter

    ©2024 PaymentsJournal.com |  Terms of Use | Privacy Policy

    • Commercial Payments
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    No Result
    View All Result