HOW PAYMENTS IMPACT SALES CONVERSION
Alternative payment solutions are payment methods merchants can offer to their consumers that don't require the use of one of the major credit card associations.
DID YOU KNOW
Alternative payment solutions are payment methods merchants can offer to their consumers that don't require the use of one of the major credit card associations.
There are a number of reasons why merchants and consumers are looking into alternative payment types. Fundamentally the market drivers are cost, security/trust and ease of use. The most well known alternative payment method is PayPal. Generally, a merchant that goes from accepting only credit cards to also accepting PayPal will see an increae in sales conversion, but overwhelming consumers with too many payment choices as shown to have a negative impact on sales conversion.
QUICK LINKS
Get Elastic eCommerce Checkout Report Webinar Presentation Slides - Presentation slides from The eCommerce Checkout Report webinar by Elastic Path and Netconcepts
ADDITIONAL RESOURCES
THE IMPACT OF FRAUD CONTROLS ON SALES CONVERSION.
Fraud tools and techniques can and will have an impact on overall sales conversion. For some tools and techniques the hit in sales conversion can be managed and controlled; while with others it isn't something you can control except to not use those methods. Learn which tools and techniques will impact your sales conversion and how you can mitigate some of these conversion leaks.
INTRODUCTION TO ECOMMERCE FRAUD FUNDAMENTALS.
Provides participants foundation level knowledge about the theories, best practices and terminology surrounding electronic payment fraud. Presented in a standard format covering the history of eCommerce Fraud, consumer fraud, merchant fraud, fraudster motivation, fraud trends, identity verification and phishing.
Huh? I thought the idea behind alternative payment types was to increase sales conversion. So you can imagine my surprise when I was listening to the eCommerce Checkout Report from Elastic Path, Jason Billingsley, on the Internet's Top 100 Online Retailers. It appears from their survey, that merchants that did not offer alternative payments had a significantly higher conversion rate than those that did offer them.
Additionally they reported that sites not offering alternative payment types and with higher ticket item sales had more than double the conversion rate of their competitors. The one good note on alternative payments, was that for those sales made with alternative payments, the average amount of the sale was significantly higher.
It should be noted that the survey is based on the top 100 online retailers, and for smaller retailers, I would expect the outcome to be different. Why do I believe that? One of the reasons shoppers choose alternative payment types is concern over the security of their credit card information. The consumer's trust level with a top 100 online retailer versus a small mom-and-pop operation is vastly different.
The eCommerce Checkout Report is from Elastic Path and was done in 2007. The main subject of the report was "These are a few of the 23 tactics we evaluated as we studied the checkout process of the Internet’s Top 100 Online Retailers." Although the GetElastic Blog no longer has an active link to the webinar, I've provided a link that has a copy of the presentation slides.