Though there are many things that may be hindering sales, today we will talk specifically about payment steps and options, and losses due to turn-downs and fraud.
Cart abandonment is certainly a dilemma in the life of any e-merchant, and with reason. The typical shopping cart abandonment rate for online retailers varies between 60% and 80%, with an average of 67.91%.
Among the many reasons as to why consumers abandon their orders, one of the top reasons is that many grow dissatisfied with complicated checkout procedures. Too many steps before completing an order can irritate a customer and keep him or her from going through with the purchase. Customers are often in a hurry and decide to give up and leave it for later, often forgetting about the transaction before ever returning.
Another issue is limited available payment options. If a legitimate customer places an order and their card is rejected without being given any other option, they will certainly move on to your competitor’s website. After all, all it takes is a few clicks.
Another very serious item that all online stores must take into consideration is fraud. Fraud can lead to significant loss, major headaches, and it can put your online business at risk. Purchases that are turned down because of unfounded suspicions also affect sales and can harm your image among good customers who are upset that their transaction did not go through.
So if you don't want your business to suffer because of these factors and want to see your sales go up each month, here are some tips that will help make sure you keep your share of the proverbial pie.
Review your payment process
Make sure your checkout is easy to understand
Many customers are in a hurry and easily distracted, not to mention that they also have various brands fighting for their attention. A complex payment process could actually be benefitting your competitors.
Customers can get frustrated at almost any step in the process and abandon their carts, meaning you will lose that revenue. Showing customers the steps in the process ahead of time helps manage their expectations.
Minimize waiting time
Traditional Brick and Mortar stores try to avoid having their customers wait in long lines; the same line of thought should be applied to online sales. The option of checking out without creating an account reduces processing time and allows customers to purchase what they want without feeling obligated to go through additional steps.
Of course, it is important to capture customer data to be able to target consumers in the future, but even this may be unnecessary. Consider offering incentives for customers who go through the more time-consuming account creation process, as it is beneficial for you as a retailer.
Avoid last minute surprises
In this critical stage of the buying process, you have to do everything you can to encourage sales and avoid any unexpected costs that mat be tacked on last-minute. Promotional codes, free shipping, and clearance discounts are a powerful way to encourage customers to complete their orders.
Reduce the risk of checkout disappointments by allowing customers to apply promotional codes early in the process. This can also drive up revenue as customers realize their money will go farther and therefore they feel more inclined to purchase more goods.
Avoid waiting for the last step in the checkout to show shipping costs. Customers may be frightened away if these costs are higher than they had expected. Most large scale e-merchants show shipping costs on the first or second page of the checkout process. Showing a preview of the cart and associated costs, including shipping and taxes, as early as possible will allow customers to adjust their purchases based on their budgeting preferences.
Avoid fraud without affecting sales
One of the main reasons that e-retailers go bankrupt is fraud. If you think this only happens to your competitors, think again. Any online store is susceptible to fraud.
So-called chargebacks, which are purchases made with debit or credit cards that the administrator cancels, have a direct impact on your revenue and cash position. Chargebacks sometimes happen because customers whose data has been stolen do not recognize the charge on their bill. You did your job and shipped the goods, and now you are stuck with the loss.
If you think the best way to address this is to manually assess sales risk or to adopt a more conservative policy and deny even more purchases to avoid risk, be advised that this may not be the best path. Fraudsters are professionals and are increasingly prepared and use creative practices to access your system; your good customers don't deserve to suffer as a consequence.
We suggest using a third party that specializes in cyber security and fraud minimization. Our hint is to focus your efforts on selling more, improving your marketing, adjusting your logistics processes and considering promotions to attract more customers while seeking the services of a specialized company like ClearSale to allow you to sell without fear of fraud.
This will minimize your worries and increase your monthly conversions. To learn more about how ClearSale can minimize your risk, email firstname.lastname@example.org.