The checkout stage of any ecommerce site is one of the most important elements of the conversion funnel, where any drop-offs in conversion can be easily prevented. Traffic that reaches your cart or checkout is high value, with the majority of customers reaching this stage ready for purchase. Any features or functionality you can implement here are crucial to improving your site’s conversion rate.
In our recently released 2019 Multichannel Retail Report, we researched over 200 retailers across a variety of multichannel criteria, with checkout and payment covering one key section of the report. With ongoing evolution in technology, retailers are now able to offer advanced checkout and payment functionality. Here is a summary of the top trends for ecommerce checkout and payment in 2019, using the latest findings from our retail report.
#1 – Most retailers now offer alternative payment options to debit or credit card
Offering your customers a choice of payment methods can be a fantastic way to improve conversion rate by allowing them to choose the option that is most convenient for them.
More retailers are now able to offer alternative payment methods, whether this is finance, PayPal, or newer solutions such as Klarna. 80% of retailers can offer at least one other payment method, so any retailers who do not offer anything alternative may be losing out with a lower conversion rate.
Whilst debit and credit cards are still one of the most convenient and popular payment methods, allowing your customers the choice can easily support an increase in conversions.
“Having more financial choice is proven to be beneficial for both shoppers and retailers alike. In fact, a recent study we carried out revealed that over half (53%) of shoppers want new and easier ways to pay online, while 56% of shoppers would buy more online if there was more variation in payment options available. Alternative payment methods such as Klarna – which lets shoppers pay later for their items after they’ve arrived on their doorsteps – fulfils the shopper’s desire to ‘try before they buy’. Klarna seamlessly bridges the infamous offline-online gap, removing a key barrier to purchase.”
Similarly, Colin Neil, SVP Business Development (UK) at Adyen, adds:
“Across Europe, we see many countries that have their own local payment method that is used by a large proportion of the population such as iDeal in the Netherlands and Sofort in Germany. Typically in Europe, we see on average at least 12 supported payment methods in addition to the main schemes of Visa and Mastercard. Shoppers want to pay their way, and supporting a wide variety of payment methods is essential.”
#2 – 88% of retailers offer guest checkout
Most retailers can now offer guest checkout, with a significant 88% of retailers offering the option to checkout without the need to create an account.
By reducing the stages of your checkout and simplifying the process, you can capture more customers who may easily otherwise drop out of the funnel because of a complex account creation process. Whilst this may depend on your brand and your product range, giving a customer the option to checkout without the commitment of account creation gives your customer choice and convenience.
With the majority of retailers now offering guest checkout, any retailers going against the grain may lose out, whether this is due to a lack of technology or due to heavy-handed marketing.
#3 – 80% of retailers have persistent cart functionality
Persistent cart functionality has been a criterion that we have always researched throughout our annual retail reports. If a customer adds a product to their basket on one device whilst logged in, and then logs into another device, they expect to see the same product in their basket.
The majority of retailers now take advantage of this technology, with 80% of retailers having persistent cart functionality on-site.
This requires a well-built ecommerce site fit for multichannel, so a flexible tech stack is key for features such as persistent cart technology.
#4 – Only 9% of retailers take advantage of save or share basket features
Another key finding from our retail report is the small percentage of retailers who take advantage of save or share basket functionality. Our commentary in our 2019 Mobile Retail Report focuses on the significance and necessity of features such as this, due to the low number of retailers who offer them.
Only 8% of retailers have a ‘save basket’ feature, allowing customers to save their whole basket for later. Similarly, only 2% of retailers have a ‘share basket’ feature, allowing customers to share their basket with friends. Topshop is the only retailer out of the 200 retailers researched offering both.
Will we see a continued decline in these features?
#5 – Only 8% of retailers offer mobile wallet payments
Since Apple Pay was launched in 2014, mobile wallet payments have been seen across many high street stores, convenience stores and other physical retail stores across the UK. However, only a shocking 8% of retailers offer mobile wallet payments such as Apple Pay or Google Pay online.
Top retailers such as FatFace, Burberry, Oasis and Warehouse are ahead of their retailer competition and have invested in the necessary integration with payment providers and their ecommerce site in order to offer an improved checkout process.
It is clear from the research that the majority of the retailers who offer mobile wallet payments are in the fashion sector, whereas those in sectors with high-value purchases or purchases with long buying cycles, such as Home & DIY or Electrical & Tech, do not.
Improving conversion rate with payment and checkout
Payment and checkout is often an overlooked area of ecommerce. Most ecommerce platforms will offer a basic checkout, with some retailers overlooking the importance of investing in additional checkout and payment technology in order to improve conversion rate.
All of our top-ranking retailers in our retail reports offer guest checkout and persistent cart, with the majority of those offering mobile wallet payment methods in our top-ranking list too. For ambitious retail brands with aspirations to embrace multichannel and mobile, investment in their payment and checkout should not be underestimated.