How to Facilitate the Payment Process In the Online Store: Multi vs One Step Checkout
According to recent studies, the average cart abandonment rate is around 70%. For an online store, it results in lost thousands of zlotys of potential profit. There are several ways to reduce the cart abandonment rate of an eCommerce site and the one recently gaining popularity is One Step Checkout approach. What is it and what benefits can it bring for your business? We answer these questions in this article.
What is One Step Checkout?
A few years ago, when online shopping was not as common as it is today, most customers only knew the standard payment process, which was time-consuming and not very transparent. The One Step Checkout solution came to the rescue.
In short, One Step Checkout is a solution where all the personal data necessary to complete the purchase, the choice of delivery methods and the address are entered on one page without having to go through multiple tabs to complete the process.
Customers definitely expect the most simplified payment handling and the choice of a delivery method. A long and complicated ordering process can put users off very easily, which ultimately leads to cart abandonment. The main task of the One Step Checkout approach is to meet customer expectations and make the order finalization process as simple and hassle-free as possible.
Advantages of One Step Checkout:
- Simple and fast transaction the biggest advantage of this solution is the simplification and shortening of the entire ordering process. Long checkout processes can be tedious, time-consuming and confusing for potential customers, particularly those who shop online relatively seldom. A more transparent process for finalizing the order can be very helpful for them and encourage them to buy again in the future.
- Cart Abandonment Rate Decrease - Some marketing agencies say introducing a one-step ordering process can recover up to 30% of orders that would otherwise be lost due to the complicated presentation of the cart page.
- Conversion Rate Increase - Introducing One Step Checkout in your online store may result in a conversion rate increase of up to 36% due to the lower abandonment rate.
Disadvantages of One Step Checkout:
- Readability and transparency - placing all the elements needed to make an order, i.e. personal data, delivery methods and payment methods, may adversely affect the transparency and readability of the website. The more elements there are on the page, the more difficult it is to attract the user's attention.
- Small space - when using the One Step Checkout strategy, we are forced to put all information regarding the order on a single page. This can cause significant problems with arranging all the elements in the proper way. It also means that there will be no room for other elements such as banner ads on the cart page.
- More problematic analytics - many eCommerce platforms define conversions as the customer's transition to the last step of the ordering process. Given that One Step eliminates other steps and puts everything on a single page, there could be potential issues with tracking conversions and sales in your store.
Is It Worth Implementing One Step Checkout in Your Online Store?
Elasticpath conducted A / B tests to determine the effectiveness of the One Step Checkout strategy. It found that the solution increased the store conversion rate by as much as 21.8% as compared to the standard multi-step solution. Moreover, the result of the experiment was reproducible in a sample of 300 and over 600 customers.
It's worth noting that customer behavioral research conducted by Advertising clearly shows that the fewer clicks needed to navigate through the store and make the final purchase, the higher the conversion rate in the store. This clearly shows that the concept behind the One Step strategy is right and the simplification of the sales process can actually translate into increased sales.
Based on research and statistical data, it is clear that One Step Checkout is a strategy worth considering by every owner of a growing online store. Not only can simplifying the checkout process positively translate into reducing cart abandonment and increasing conversion rates, but also improve the customer experience with your store.
Customers for whom finding products, the payment process and the choice of delivery options are easy, intuitive and trouble-free, will be much more likely to shop again in such a store in the future.