A recent study by Ecommpay in collaboration with IMRG has shed light on the significant inefficiencies plaguing e-commerce checkout processes across the UK. The research titled “eCommerce Checkouts: UK Retailers Reveal Their Checkout Strategy and Performance” provides a comprehensive analysis, revealing that the average conversion rate for online retailers stands at a mere 58%. This statistic raises alarms, indicating that many retailers may be missing out on potential sales due to problems during the checkout phase.
Conversion Rate Disparities
The study highlights notable differences in conversion rates based on checkout types and customer segments. For instance, single-page checkouts boast a commendable conversion rate of 61%, while multi-page checkouts fall short with a rate of 56%. This suggests that simplicity in the checkout process can lead to higher conversion rates.
Moreover, the report reveals that registered customers, who have already established an account with the retailer, exhibit a conversion rate of 64%, significantly higher than the 52% rate recorded for guest shoppers. Considering that 59% of purchases are made by guest customers, enhancing the guest checkout experience could have a marked impact on overall conversion rates.
Impact of Payment Methods
The methods of payment offered also play a critical role in conversion rates. The study reports that credit and debit cards account for approximately half of all revenue generated by retailers. Surprisingly, only half of the surveyed retailers provide localized payment options, which are becoming increasingly important in catering to diverse consumer preferences. Furthermore, those customers who abandon their carts typically do so after investing 90% of the time required to complete the transaction. This statistic starkly illustrates the urgency for retailers to identify and eliminate friction points in the checkout process.
The availability of Express Checkout options significantly affects conversion rates as well. Retailers that offer four Express Checkout options enjoy an average conversion rate of 67%, a stark contrast to the 54% achieved by those providing only a single option. This underscores the importance of providing customers with flexible payment choices to enhance the shopping experience.
Challenges in the Checkout Process
According to the findings, common barriers hindering effective checkout experiences include limited functionality and performance issues. Many retailers acknowledge the lack of widely adopted payment options, such as Google Pay or Apple Pay, which could facilitate smoother transactions.
Moshe Winegarten, Chief Revenue Officer at Ecommpay, highlighted the implications of this study: “The insights in this report should provide those responsible for checkout conversion with a moment of reflection. With the average conversion rate below 60%, there is significant room for improvement. Additionally, considering that checkout abandonment tends to happen at nearly 90% of the time it takes to complete payment, businesses must concentrate their efforts on the payment experience.”
Winegarten advocates for integrating payment service provider (PSP) solutions to address these challenges. He suggests that a comprehensive PSP solution can consolidate various aspects of the payment experience into a cohesive flow, ultimately enhancing operational efficiency and improving checkout conversion rates. Working with a provider like Ecommpay can facilitate the implementation of more express payment options seamlessly, translating to operational advantages for retailers.
Strategic Recommendations for Improvement
Ecommpay has outlined several pragmatic strategies for retailers looking to enhance their e-commerce checkout processes:
1. Simplify the Payment Experience: Reduce the number of steps required for transaction completion. The quicker and easier the process, the less likely customers are to abandon their carts.
2. Offer Regionally Relevant Payment Methods: Understand the geographical preferences of your customer base and provide payment options that resonate with them. This approach can significantly improve conversion rates.
3. Eliminate Redirects: Minimise the need for customers to be redirected to third-party sites, as this can lead to frustration and increased cart abandonment.
4. Use Diverse Payment Options: Partner with a payment service provider capable of integrating various payment types through a single platform. This consolidation not only streamlines the process but also enhances customer satisfaction.
5. Prioritise Accessibility Standards: Ensure that your payment page setup meets accessibility regulations to offer an inclusive experience for all potential customers.
In conclusion, the findings from the Ecommpay and IMRG study reveal critical insights into the state of e-commerce checkouts in the UK. With conversion rates hovering around 58%, there is a clear opportunity for retailers to refine their strategies and enhance customer experiences. By addressing inefficiencies and adopting best practices in payment methods, retailers can significantly improve their conversion rates and ultimately drive revenue growth.