UK study reveals e-commerce checkout inefficiencies

A study conducted by Ecommpay and IMRG has highlighted significant checkout challenges in the e-commerce sector, which are restricting conversions and customer satisfaction.

The report titled 'eCommerce Checkouts: UK Retailers Reveal Their Checkout Strategy and Performance', presents several key findings that underline inefficiencies in the current checkout processes that could potentially hamper conversion rates. Currently, the average conversion rate for online retailers stands at 58%, with discrepancies noted between different checkout forms and customer types.

Single-page checkouts achieve a conversion rate of 61% in contrast to 56% for multi-page versions, while registered customers have a markedly higher conversion rate of 64% compared to 52% for guest shoppers. The study emphasised that 59% of purchases are made by guest customers, suggesting that enhancements in guest checkout could significantly boost overall conversion rates.

Further insights shared in the report reveal that credit and debit cards generate approximately half of all revenue for retailers, with the remainder coming from various alternative payment methods. Localised payment options are offered by only half of the retailers surveyed. The urgency of these enhancements is highlighted by the statistic that customers who abandon their purchase generally do so after investing 90% of the typical time taken to complete a transaction.

The availability of multiple Express Checkout options also appears to influence conversion rates positively. A notable observation is that retailers providing four Express Checkout options experience an average conversion rate of 67%, significantly higher than the 54% conversion rate among those offering just one Express option.

Challenges such as 'limited functionality/capabilities' and 'performance challenges' were cited as common barriers to effective checkout experiences. Additionally, some businesses reported a lack of options like Google Pay or Apple Pay, as well as a general shortage of alternative payment methods.

Moshe Winegarten, Chief Revenue Officer at Ecommpay, commented on these insights: "The insights in this report will provide those responsible for checkout conversion with some pause for thought. With the average conversion rate sitting just above half, there is plenty of room for improvement. And with the average checkout abandonment occurring at nearly 90% of the typical length to complete payment, the focus needs to be placed specifically on the payment experience."

Winegarten also suggested that an integrated PSP solution could be crucial in overcoming these barriers: "An integrated PSP solution that builds all aspects of the payment experience into one full stack can consolidate consumer choice and checkout flow, as well as improve operational efficiency. Working with a payment provider like Ecommpay that can facilitate switching to more express payment options easily will have operational advantages and improve checkout conversion. The key is to select a payment provider capable of scaling globally, with access to a huge range of payment methods. Then merchants will benefit from increased authorisation rates and drastically decreased transaction costs."

Ecommpay provided several strategic tips for enhancing e-commerce checkouts, including simplifying the payment experience, offering regionally relevant payment methods, eliminating redirects, and using payment service providers capable of handling a variety of payment types through a single integration. Accessibility standards were also flagged as an essential component of an inclusive payment page setup.