Marketing, inventory management and employees all have their place in a company’s success, but without a smooth checkout process sales won’t reach the top.
Surprisingly, many online shoppers abandon their carts after getting to the checkout page. It happens 70% of 1. Studies differ, however. How much revenue could your business generate if you could reduce that to 50%?
PayPal discovered that a large eCommerce site can increase its conversion rates by 35% with a better checkout design. This would make the US and Europe worth $260 trillion. This is a great opportunity to increase your sales by improving one area of your store.
Let’s take a look at six ways that optimizing your online checkout process can help you increase revenue and drive sales.
1. One-click checkout
There are many reasons why shoppers abandon their carts. The process can be too complicated or time-consuming.
Eliminate unnecessary steps. Eliminate the need to create an account in the checkout process. You don’t have to fill out certain fields.
2. Mobile shopping optimized
This same study, mentioned earlier, found that while half of online browsing occurs on mobile devices but mobile conversion rates are still lower than those on tablets or desktops. Why is this? It’s not just small screens that make it difficult to compare and navigate pages and view items. Mobile conversions can also be affected by slower page loads, too many fields and limited payment options. And, most importantly, security concerns.
42% of consumers are unhappy with mobile checkout experiences. This is partly due to misalignment in consumer expectations and merchants’ features. Suboptimal user experiences can lead to checkout abandonment for merchants 2
Shopping online is also a popular choice. Many shoppers prefer to shop on their smartphones and then buy later. If they have a positive online experience, they are 47% more likely 3 to return. You may be able to earn more from a repeat customer if you make it simple.
What can you do to make your mobile shopping experience better?
Accept multiple payment methods. Reduce the number of ads, plugins and graphics to speed up load times. PayPal can speed up the checkout process by automatically filling in address and payment information. This is often a problem on mobile devices.
People may feel less concerned about security if they can speed up the process without the use of a physical credit card.
- Magento Pos
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- Bigcommerce automation
- Shopify automation
3. Promote “Buy Now, Pay Later” as a payment option.
Consumers desire options. Consumers want flexibility. They want to be able to purchase the items they need, while still managing their finances. Customers may be more inclined to purchase if you offer them this flexibility during checkout.
This financial flexibility can be achieved by giving them the opportunity to purchase now and pay later.
PayPal Checkout includes PayPal Pay Later Options at no extra cost.
- Pay Later is a short-term financing option that allows customers to pay for their purchases with interest-free payments while businesses are paid upfront. 4
- PayPal Credit (U.S. Only) provides special financing for larger purchases. Businesses get paid upfront, while customers can pay over time.
The 21% increase in sales for businesses that promoted PayPal Credit on their sites was compared with those that did not. 6
You might be wondering how your checkout process could reach a marketing goal such as increasing the average order size. You can add messaging about PayPal Pay Later options. You can add dynamic messaging to your store with the PayPalCheckout extension. This means that it will change to show the right offer depending on which product is viewed.
Businesses saw an 56% increase when they used PayPal Credit messaging to their website. This is huge!
Shops can also benefit from PayPal pay later. Shops can also benefit from PayPal pay later. 64% of customers say they are more likely to shop at retailers that offer interest-free payment options 8
This could translate into more sales conversions or more money.
4. Provide subscription and recurring payments services
Subscription eCommerce sales reached almost 20 billion USD 9 in 2020 alone, and are forecast to rise to over 30 billion by 2024.
McKinsey identified three types subscription models. Choose the one that is most beneficial for your company.
- Replenishment: Sell commodity items such as razors or dog food.
- Curation – Offer members a wide range of options and variety. This is great for apparel, beauty, food, and other areas.
- Access – Create a club, exclusive offers and discounts.
Marketing-wise, replenishment appeals almost to everyone’s “save money and time” instinct. Curation is all about the excitement of discovering and being delighted by unique and diverse items. Access appeals to the desire for something special.
5. Offer upsells and additional services
It is a great way of closing the sale and possibly increasing the order size by including relevant product suggestions, gift options, and accessories on the checkout page.
6. Security and trust can be increased
82% of consumers think payment security is important when paying for online or mobile purchases. 8
This means you need to be careful about what words you choose. Secure checkout is more than “checkout”. You “verify”, not “re-enter”, your email address. These things can make a huge difference in winning trust , giving customers confidence in your checkout process, and gaining their trust .
It’s easy to upgrade your checkout process
PayPal offers a free PayPalCheckout extension that will help you improve your checkout process. PayPal Checkout offers PayPal, Venmo and buy now, and pay later options.
Customers can pay online in just one click, without having to leave your website. It supports 26 currencies. It also includes PayPal credit and PayPal pay later.
PayPal is a great way to improve your shopping experience and decrease cart abandonment. This can lead to increased sales.