The study by Ecommpay and IMRG sheds light on crucial gaps in e-commerce payment methods that impact conversion rates and checkout efficiency.
- Single-page checkouts outperform multi-page ones, revealing significant disparities in conversion success.
- Payment methods diversity remains limited, with many retailers not offering regional options, affecting customer transactions.
- Express checkout methods positively affect conversion rates, yet many retailers lack these options, impacting sales.
- Accessibility standards create additional challenges for retailers seeking to improve their payment methods.
A recent study conducted by Ecommpay and IMRG exposes significant challenges faced by UK e-commerce sites in optimising checkout processes and payment method diversity. Research findings indicate that single-page checkouts achieve higher conversion rates of 61% compared to 56% for their multi-page counterparts. This highlights a clear advantage in simplifying the checkout experience for consumers.
Moreover, the analysis reveals a stark contrast in conversion success between guest and registered shoppers. Guest shoppers, who account for a substantial portion of e-commerce transactions, convert only 52% of the time, compared to 64% for registered users. This suggests that simplifying the process for guest users could offer a critical boost to conversion rates.
Despite the prevalence of credit and debit card payments, which generate half of all revenue, the study finds that many retailers have not yet adopted localised payment options. These are crucial for enabling customers to use payment methods specific to their region. Furthermore, sites offering multiple express checkout options witness a significantly higher conversion rate of 67%, unlike those with limited or no express options, which lag at 54% or lower.
A notable finding of the study is the high checkout abandonment rate, with customers typically exiting after completing 90% of the process. This points to substantial friction at the payment stage, exacerbated by limited functionalities, and slow or unstable system performance, which inhibits retailers from effectively adding new payment methods or altering checkout flows.
Technical challenges extend to compliance with WC3 WCAG 2.2 AA accessibility standards, aimed at making web content accessible to users with disabilities. Although payment service providers offer pre-built components with integrated accessibility features, maintaining these standards while implementing new payment methods remains a hurdle for many retailers.
Efforts to bridge gaps in checkout configurations and payment options are essential for improving e-commerce conversion rates.
