Cart Abandonment, conversion rates, and payment optimization are all factors that are crucial for business performance. In our breakdown we provide tips on how to improve your checkout process and provide insight on: cart abandonment rates; one-click checkout solution; types of cart abandonment; checkout optimization; and the shift of focus to payments optimization
44 different studies on e-commerce shopping cart abandonment revealed that roughly 7 out of every 10 shoppers won’t complete their transaction and will abandon their online shopping cart, some studies even suggesting higher numbers.
Cart Abandonment, conversion rates and payments optimisation are crucial metrics that can have a profound impact on business performance but are simultaneously distracting factors for business owners who would rather focus on acquiring new customers through marketing, developing new product and pursuing their growth goals.
How is Fast able to land such fundings? In short, E-commerce continues to grow whilst cart abandonment continues to be a headache for many business owners.
Fast's flagship product is designed to overcome the problem of shopping cart abandonment by enabling consumers to complete purchases with a single click, without requiring a password or manually inputting information for every order on any browser, platform or device.
There are 2 types of cart abandonments. The first type is those caused by natural consequences and largely unavoidable. Examples of this type are:
The second type is the avoidable kind. It is the one where companies need to make adjustments in order to decrease cart abandonment rates. One way to do this is checkout optimization, as it can increase conversions by 35%. If you combine the $738 billion E-commerce revenue of the US and EU, that increase in conversion would round up to $260 billion worth of lost orders which are recoverable solely through a better checkout flow & design.
The number one reason for cart abandonment is additional costs that are visible at a later stage, such as shipping, tax and fees - transparency is key here and increases conversion.
Now we’re getting to the part where Fast’s one click checkout solution & funding will start to make sense. A study revealed that 28% of shoppers drop out because: “the site wanted me to create an account”
Having a long or complicated checkout process is the reason why over a 1/4 of shoppers abandon their cart. And in total, 55% of shoppers will abandon their cart if they have to re-enter their credit card or shipping Information. These issues could largely be resolved by an easy one-click checkout solution.
Next on the timeline should be to implement this checkout everywhere on the web, because the success of Fast’s checkout solution largely depends on nearly a monopoly in checkouts.
Obviously this is great, for new customers, yet most merchants gain the most revenue from returning customers, and for those a one-click checkout is not relevant as the merchant has this data available at checkout.
Seeing Stripe’s involvement in series A and B, it is likely we will see an acquisition and every one-click checkout will be available to merchants who are integrated with stripe, but that’s just a guess! From a payments perspective, this is quite positive as cart abandonment will likely be reduced, and the focus can be shifted towards optimising payments, in which approximately 20% of transactions still fail.
Now for business owners, this can be challenging, Paymentgenes consultancy offers Payments Optimization as a Done-for-You service, with a team of highly trained consultants from the industry who use data to provide you with actionable insights and know exactly how to improve your performance, reduce costs, fraud and chargebacks.
Checkout our website to schedule a free 30-min growth-scan to help you identify in which growth phase your organization currently is and how payments optimisation can help you accelerate growth and reach goals quicker. You'll be able to select a Date & Time on your email in just a few clicks! That’s all for this week, cheers bye bye.
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