A new report from Ecommpay and IMRG, has revealed the key e-commerce checkout changes that could boost conversion rates.
While the average conversion rate stands at 58%, there is a significant distance between rates for single-page (61%) and multi-page checkouts (56%) as well as between guest shoppers (52%) and registered customers (64%).
With 59% of orders placed by guest customers, improving the guest checkout experience could considerably improve overall conversions.
Key findings
The average conversion rate is 58% – 56% for multi-page and 61% for single-page checkouts- Credit/Debit cards account for half of all revenue, the rest being split across a range alternative payment methods
- Average conversion rates are higher where more Express Checkout options are available
- Just half of retailers offer localised payment options
- On average, customers who drop out do so after 90% of the average time it takes to complete checkout
Insights in the new report, eCommerce Checkouts: UK Retailers Reveal Their Checkout Strategy and Performance, were gathered directly from IMRG’s diverse retail community, from varying product categories, market tiers and retail types.
The report provides actionable advice that can help merchants enhance their customers’ purchasing journey, reduce basket abandonment, and boost conversion.
The study found that conversion rates are also impacted by the number of Express Checkout options available to buyers.
Retailers providing customers with just one Express option achieve 54% conversion – not far above the 52% of those with no such options – whereas those with four Express Checkout options reach a far higher average conversion rate of 67%.
When asked what challenges merchants find with their checkout experience, just three of the respondents reported having no checkout challenges, highlighting that most checkout processes do need attention.
The most common barrier, cited by almost half of respondents, was ‘limited functionality/capabilities’, closely followed by ‘performance challenges’.
Another issue is the lack of Google Pay or Apple Pay options, while some retailers said a lack of alternative payment methods was a challenge.
It is clear that retailer e-commerce conversion rates are impacted by a lack of essential features, technical issues such as slow loading times and website crashes, and overall inefficiency.
“The insights in this report will provide those responsible for checkout conversion with some pause for thought,” commented Moshe Winegarten, Chief Revenue Officer, Ecommpay.
“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.
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.”
Top tips for improving E-commerce checkouts:
- Create a payment experience that makes the checkout as simple as possible
- Offering the payment methods your customers use the most, and that are relevant to the customer’s region
- Eliminate redirects and embrace micro frames to improve conversion
- Add tools like “try again” to save consumers from restarting the checkout journey in the event of a declined transaction
- Partner with a PSP that can offer a full-stack solution so that management of individual payment methods is not your problem
- Ensure your PSP can offer a range of solutions for single integration, from open banking, BNPL and subscriptions to payment orchestration
- Your PSP should have the capability to scale globally with access to a huge range of payment methods, and fit-for-purpose solutions such as Payment Links & QR Codes/Recurring Payments/Payouts/Virtual Terminal Payments
- Ensure payment pages are accessible to a diverse audience and meet the WC3 WCAG 2.2 AA standard for accessibility
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