In 2022, online retail sales reached $1.07 trillion — a 21.7% increase from 2021 in the US. The reality is more and more consumers are shopping online and skipping brick-and-mortar stores for a faster and more convenient way of shopping. For ecommerce businesses, this means the competition is increasing. Online customers expect a simple, flexible, and seamless shopping experience that fits their busy lifestyle, and having the right ecommerce payment options are critical to a business’s success.
1. Tailor Payment Options to Your Customers
To drive conversions, ecommerce stores must offer various payment options that appeal to customers but don’t harm the business’s bottom line. The two main systems for collecting payments are ACH Debit (direct debit or bank credit) and credit/debit card.
In 2021, the share of global e-commerce payment methods was as follows:
- Digital/Mobile Wallet: 49%
- Credit Card/Charge Card: 21%
- Debit Card: 13%
- Bank Transfer: 7%
- Buy Now, Pay Later: 3%
- Cash On Delivery: 3%
- Direct Debit, PrePay, Prepaid Card, and PostPay: 1%
Popular Payment Options for Ecommerce Merchants
E-commerce businesses must offer customers safe and convenient payment options to boost sales. Below are three popular payment options that can help merchants increase conversion rates, boost cart sizes, and provide greater convenience to customers.
Afterpay is a leading buy now, pay later payment service. Shoppers who use Afterpay spend 40% more than those who don’t. In addition, they shop 50% more frequently than those who don’t use the service. Moreover, Afterpay allows merchants to offer a customized shopping experience with convenience and greater control for younger consumers. Top retailers like Ulta Beauty, DSW, Lululemon, Urban Outfitters, Nike, and Anthropologie offer Afterpay.
Affirm is a leading pay-over-time solution that offers flexible payment options for everyday purchases or higher-ticket items. With tailored Buy Now Pay Later programs, Affirm removes price as a barrier and helps turn browsers into buyers, increasing average order value and expanding your customer base. Affirm partners with 250k retailers and has over 14 million users in its network.
PayPal is an established and well-trusted payment method used by merchants around the globe. The company has been in business for over 20 years, serves over 200 markets worldwide, and handles over 100 currencies.
When ecommerce stores offer PayPal, consumers are three times more likely to purchase. PayPal’s Pay Later option boosts merchant conversion rates and increases cart sizes by 39%, making it a very lucrative payment option for sellers. Pay Later appeals to 81% of younger consumers who appreciate flexible payment options.
For merchants, PayPal offers instant access to funds, even while the payment is still processing, and adheres to global compliance standards, such as PCI and PSD2. The payment subscription also has AI technology that monitors all transactions to protect sellers and reduce the risk of fraud. In addition, PayPal has built-in two-factor authentication and offers automatic updates as security protocols change.
Owned by Paypal, Venmo allows customers to share purchases with friends. In addition, Venmo users spend 2.2 times more annually on online purchases than other buyers. Note, however, that Venmo is only available in the US.
2. Streamline The Online Checkout Process
Once you’ve determined the payment options you’d like to offer, it’s essential to streamline the online checkout experience. You can take key steps to increase conversion rates and drive sales.
Skip Account Registration
Many customers just want to make a purchase and go on with their day without going through the hassle of creating a username and password and verifying their account through text or email. Skipping account registration before checkout can help reduce cart abandonment by 50%. If you’d like, offer the option to create an account at the end of the checkout process.
Limit the number of entries a customer makes when going through the checkout process. Also, ensure the labels for each entry are well-placed and don’t detract from the experience.
Keep the Process Short
Don’t force customers to go through a five-page checkout process. The easier, the better! Also, don’t make them navigate to an external service to pay for their items.
Offer Multiple Payment Options
Offer the basic payment options of credit and debit cards and a few alternatives like PayPal and Afterpay. Payment services like PayPal already store the customer’s payment information, removing the need to re-enter billing information and increasing convenience.
3. Craft Messaging that Converts
Crafting messaging that effectively targets the final purchasing decision can be a game-changer for ecommerce. By providing messaging that resonates with your ideal customer, you can increase the chances of converting browsers into buyers. One powerful strategy to consider is emphasizing flexible payment options, such as PayPal Pay Later, which can help remove any financial barriers that might be preventing customers from making a purchase. By showcasing this messaging prominently during checkout, you can communicate to potential customers that you understand their needs and are willing to work with them to make their purchases more affordable and convenient. This can ultimately help increase conversions and drive more sales for your business, significantly impacting your bottom line.
4. Optimize Mobile Shopping
In 2021, the share of mobile commerce exceeded that of desktop commerce. Consumers are drawn to the ease and speed of online mobile shopping and expect merchants to offer a seamless shopping experience. Here are a few steps online sellers can take to optimize their mobile checkout process
Keep it Simple
Keep the online shopping process as short and simple as possible when crafting it. Minimize the number of steps or clicks a customer makes to view a product and reach the checkout page.
Offer a Great Customer Experience
If there’s an issue during the checkout process or the customer has questions, it’s important to have a thorough FAQ page and access to customer support. This option will give customers peace of mind and increase loyalty.
Create a Fixed Navigation Bar
A fixed navigation bar ensures customers see vital information and don’t need to scroll up to view the menu. It also simplifies the mobile experience. The three main elements each mobile web page should have are a homepage link, a checkout link, and an “add to cart” call-to-action button.
Center product photography
The mobile browsing experience is largely visual, featuring captivating images. As platforms like Instagram and Pinterest demonstrate, properly positioned images have a measurable impact on engagement. For mobile commerce, the visual appearance of a product influences purchasing decisions. Create a simple layout with centered photography and limited copy when creating product pages.
In conclusion, providing a seamless and secure payment experience is crucial for ecommerce businesses to succeed in today’s competitive market. By tailoring payment options to your customers, streamlining the online checkout process, crafting effective messaging, and optimizing mobile shopping, you can create a shopping experience that delights customers and boosts sales. Don’t hesitate to implement these strategies and use popular payment options like Afterpay, PayPal, and Venmo to meet your customers’ needs and stand out from the competition. By prioritizing your customers’ payment experience, you can build brand loyalty and drive long-term success for your business.
Need Help with Ecommerce?
At Orange Coast Websites, we understand the importance of providing a seamless and secure payment experience for your customers. That’s why we offer expert ecommerce website development and maintenance services using powerful solutions like WooCommerce. With WooCommerce, you can easily manage your online store, track inventory, process payments, and more, all while providing a user-friendly experience for your customers. Our experienced team of developers can help you customize your ecommerce site to meet your specific needs and deliver a professional, visually appealing storefront that drives sales. Contact us today to learn more about how we can help your business establish a solid online presence and grow your revenue with the power of WooCommerce