Conversion of e-commerce is one of the basic indicators, which measure and optimization, affects on the ultimate success of your online business. Factors that have an influence on it are a dime a dozen, but we will consider now the element whose importance is often underestimated. How the amount and type of payment methods available in your online store can affect on sales? Let’s see. Enjoy reading!
1) Payment – the most unpleasant phase of the purchasing process.
If someone has to pay you, then let him do it in a comfortable way. Reduction of accumulated funds in account is always “painful”, even if in return we get a product from our dreams. How to make this unpleasant necessity less onerous? In addition to adequate UX design of the e-commerce, we should take care of the choice of payment methods available in the store. As has been shown in studies, to 54% of the users in Poland, the availability of different payment methods is a key factor encouraging to buy online. Of course – greater number of available payment methods are often higher cost of running an online store, but … in the end, it may pay off. How do you think – how many people abandon your e-commerce due to the lack of availability eg. cash on delivery? The answer is – probably more than you think!
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2) Payments in e-commerce (Polish case)
According to last year’s study conducted by Gemius, five payment methods which encourage Poles to shop on the Internet were:
– Fast money transfers through payment services – 60%
– Cash payment for pick up at the courier – 44%
– Shipping COD (cash on delivery) – 42%
– Traditional cash transfer – 38%
– Cash payment for pick up in store – 22% (Do you already started your OmniChannel strategy?)
These data may indicate directions in which you should go adapting ways of making payments in e-commerce, but they do not necessarily match exactly your target group. Conduct research on your own and see what works best for your e-shop. You can use surveys conducted among customers – in this way you can be sure that your actions will bring real effect.
3. Alternative payment methods (Bitcoins, Paysafecard)
E-commerce gives you a wider choice of payment for the service or product than can offer brick-and-mortar stores.
The most popular alternative method of payment are Bitcoiny, ie. cryptocurrency operating in peer-to-peer. Since its inception, that is, since 2009, it gains the popularity and more and more places accept payment via Bitcoins. Even today in many countries Bitcoin denied being a currency (including Poland, unfortunately), but it does not prevent the shopping by them. Popularity of transactions using Bitcoins is increasing especially in the US and Western Europe. Specialists in the field of economics and banking predict that in 2016 the US government will grant Bitcoins the status of official currency, which probably will result in even greater interest in this method of payment.
Another interesting way to make transactions in the online store is Paysafecard. This electronic payment method operates on a system similar to pre-paid, and the payment does not require onerous administration of personal data and bank details.In this case, you buy a card with a PIN code, which is given during the purchase process. Currently Paysafecard system operates successfully in 43 countries around the world.
You have to keep up with technology, because it is possible that over time they will deny payment method, which currently are used by your customers. Going back to the previous discussion about the introduction of various conventional methods of payment in e-commerce…
4) What can we gain?
According to research carried out by YouGov, 50% of online shoppers in the UK gives up finalization of the transaction due to the inability to make payments in the most convenient way for them. What’s more – 40% of respondents said they feel more comfortable in shops which give them choice in this regard. We have a chance not only to increase sales, but also to improve customer loyalty due to build the image of a reliable and professional seller.
To sum up – the more payment methods are in your shop, the higher probability that the customer will buy in your store. More orders = bigger profits! If your e-business can not afford – for now – for multiplication methods of payment, then try to choose the most convenient for your customers. This is possible thanks to the audit and testing of e-commerce. If you will realize that soon enough, then you are able to catch up with the competition and make the appropriate step towards effectively fighting for consumers in e-commerce.