Checkout page mistakes can hurt your sales, drive down revenue, and ultimately ruin your business.
Even if you already have a good ecommerce site that accepts credit cards and/or other types of digital payment, not making the right choices and being savvy enough when it comes to online payment processing can be detrimental to your online business success.
See what payment page mistakes many small businesses make and things you can do to ensure your e-commerce store is on the right track.
5 Common Payment Processing Mistakes Small Businesses Make When Selling Online
1. Not providing multiple payment options
Having multiple payment methods naturally makes it more convenient for online shoppers to pay. So to improve your payment page conversion rate, you need to facilitate your customers by accepting not only the more conventional forms of payment like Visa, MasterCard, and American Express, but also the newer online payment methods like Sofort, iDeal and ACH, as well as mobile wallets like PayPal, Apple Pay, Alipay, Visa Checkout, MasterPass and so on.
Small businesses tend to struggle and face challenges with regard to converting mobile shoppers, particularly given the fact that payment page conversion rates are usually lower on mobile – averaging around 20%. Accepting mobile wallets may help you overcome this challenge, at least to some extent, since some of them provide a mix of free marketing tools like coupons and discounts.
2. Failing to optimize their cross-border ecommerce payment processing
Throughout the world cross-border e-commerce has grown exponentially in recent times. In fact, it is now worth $400 billion and counting. If you’re not taking proactive measures to attract international shoppers, then you’re missing out on a big piece of the pie.
But you can reverse this by optimizing your online store for cross-border e-commerce. The first, and most important, thing you need to do is make sure you have a robust, speedy and globally-minded payment processor/gateway. Such a payment processor should enable you to offer prices in local currencies, present your checkout page in local languages, and provide popular local payment options for multiple countries. This will ensure that you’re able to satisfy the online shopping needs of customers across multiple regions/countries and demographics.
World First provides a great solution for sellers on Amazon, eBay, PriceMinister and Cdiscount to name a few. They provide a lot of benefits like no fees for receiving money, no monthly charges and it’s free to open and account with them, so it might be worth to give it a try.
3. Failing to utilize built-in intelligent payment routing
Utilizing intelligent payment routing and failover capabilities is crucial to achieving increased percentage of approved transactions, or payment conversion rate; and, therefore, must be an integral part of your store’s payment processing engine.
Intelligent payment routing refers to the process involved in sending (or “routing”) transactions to the acquiring bank (the bank responsible for processing transactions on behalf of the merchant/online store) where it is most likely to be approved. When a customer buys something from your store, the request for payment is sent through your payment processor/gateway to the acquiring bank where it is either accepted or declined.
Intelligent payment routing, sometimes referred to as automatic transaction routing, involves sending transactions to the best acquiring bank that will most likely approve the request for payment. When this happens, you’re able to realize maximum payment page conversion rates.
As well as intelligent payment routing, your payment processing engine should support automatic fail-over transactions. This simply means, if one acquiring bank is not able to complete the transaction, it is automatically sent to another – which might allow it to go through. This, in turn, increases your percentage of approved transactions.
4. Failing to provide free shipping, coupons and other fulfilment services
Coupons and free shipping are some of the most effective ways to increase your conversion rates.
Coupons, like any other form of discount, give customers an extra incentive to purchase, thereby boosting conversions. They are also a great strategy when it comes to attracting repeat customers.
But free shipping is even more beneficial.
A 2015 survey conducted by Statista showed that 78% of the respondents were lured into joining Amazon Prime by their free 2-day shipping. And according to another study, 56% of online shoppers leave their filled shopping carts before making the purchase because of unexpected costs, mostly shipping charges, at the checkout. So it’s recommended to provide free shipping if you can; but if you cannot do this, be sure to reveal any shipping charges upfront.
5. Failing to ensure a smooth checkout process
Facilitating a frictionless checkout has been shown to increase online sales by up to 40%. This typically involves creating a less demanding checkout that requires shoppers to fill out as few fields as possible in order to complete their purchase. When your customers have filled their baskets, you need to ensure that they have a smooth and seamless checkout experience. So make sure your checkout is well optimized and doesn’t have too many form fields that could lead to abandonment.