5 Payment Resolutions Every eCommerce Business Should Make

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5 New Year’s (Payment) Resolutions Every eCommerce Business Should Make

Written by: Mike Misasi

2016 has just arrived, which means it’s that time of year when we start thinking about goals. Looking back on some of the successes our customers experienced this past year inspired us to put together a Top 5 new year’s resolutions for eCommerce merchants. We all know how difficult it can be to stick to our resolutions, so we’ve included a helpful tip with each one to keep you on track.

new years payment resolutions

  1. Remove friction from my eCommerce checkout flow.

Tip: Consult the Checkout Conversion Index

Checkout friction is anything that might cause a shopper to abandon their purchase, and it costs some merchants up to 36% of sales. Product reviews and recommendations, a variety of payment options, a clear refund policy, and a simplified checkout flow all increase the likelihood that shopper clicks “Buy.”

  1. Increase my payment conversion rate.

Tip: Review payment conversion reports with your payment provider

If you’ve optimized your checkout flow and aren’t seeing the results you expected, you might have a payment conversion problem. There are a number of reasons why transactions fail even after the shopper clicks Buy. Your payment gateway or processor should be able to help you understand what is causing the problem. The location of your acquiring bank or the currency in which transactions are being authorized are areas merchants should explore.

  1. Consider implementing subscription-based pricing

Tip: Be creative

Consumers’ affinity for subscription plans has exploded in recent years, especially in the U.S. Almost every type of product is now available as a subscription. Even merchants like Target that sell physical goods allow shoppers to set up subscriptions for products to be shipped on a recurring basis. Be creative and consider how your products can be offered as a subscription. For services, subscriptions make large price points more palatable to customers. And for any type, subscriptions produce highly predictable revenue streams.

  1. Lower my chargeback rate.

Tip: Work with a fraud prevention specialist.

Processor chargeback fees and lost merchandise cost merchants billions of dollars per year. In a worst case scenario, merchants can even lose the ability to accept credit cards if their chargeback rate gets too high. Fraudsters change tactics so quickly that is often makes sense to work with a fraud prevention specialist rather than building their own technology. Merchants can often access services from fraud prevention vendors for free or at a discounted rate through their processor or payment gateway.

  1. Go global

Tip: Support the shopper’s local language, currency, and payment types.

Don’t let payment issues limit your growth – eCommerce is a truly global opportunity. To make your international expansion a success, work with a payment provider that supports best practices for cross-border payments – accept local payment types, charge customers in their local currency, and display checkout pages in the local language.

Most importantly, don’t limit yourself to just one. Revenue increases multiply as you layer in checkout improvements. It’s definitely worth the effort.

Here’s to a “frictionless” 2016. Happy New Year! If you need help navigating through any of these tips reach out to one of our conversion consultants:

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