Potential sales are being neglected by some of the UKs largest e-commerce sites and online retailers due to the lack of different payment methods available to customers. According to a YouGov survey (commissioned by ClickandBuy) over 50% of regular online shoppers will cancel a potential purchase if their preferred payment method is not available.
So beyond the standard Visa and other credit and debit cards, what other payment options can e-commerce stores offer to maximise their sales?
PayPal and Google Checkout
The most obvious choice here is PayPal and Google Checkout. Whilst many smaller retailers offer PayPal (and it’s something consumers have grown to expect), practically none of the larger retailers offer this to their customers. Those utilising Google Checkout have an extra button on their Adword ads asserting this, which, according to Google, increases the amount of clicks these ads receive by 10%. This is a great option to address those dubious about submitting their credit card details to an unknown entity.
In a sporadic move Kiddicare have made it possible for their customers to pay for goods with cash by buying a voucher and entering the voucher code during the check out process. The vouchers are available from over 21,000 pay points throughout the UK, including many petrol stations and local newsagents. The reason for this new mode of payment is customer demand, as explained by Scott Weavers-Wright, partner at Kiddicare, via silicon.com.
- We get about 400 or 500 calls a day and 300 or 400 emails a day, (and) we do get questions on ‘is there an alternative payment?’ and it’s definitely increasing.
Taking cash over the web
Clearly the recession plays a role here, with more individuals being unable to access credit cards that they can use online. That said the ability to pay by cash addresses the fact that a sizeable group of people are still fearful of ordering online due to crime and fraud.
“It’s very apt that we should be able to offer the ability for customers to pay with cash in the current climate. If (customers) don’t want a credit card they shouldn’t be penalised and they should have the option for another payment…
Telephone Orders
According to a Get Safe Online survey 14% of people in the UK are still deterred from using the internet due to fear of online crime. The provision of a telephone number on the site through which orders and customer service issues can be resolved could be used to address this, offering those alarmed a traditional payment choice.
Businesses, and rightly so, may be reluctant to offer such a number on their site because the attraction of operating an online store is the low running costs and overheads, such as operating a call centre.
PetFoodDirect.com have taken an intelligent approach to this problem allowing consumers to fill in their order details online, minus card details, and request a call back to make payment. This significantly reduces the amount of time each consumer spends on the phone and ergo the associated cost to the business.
Signs of Trust
Often the reason consumers are looking for alternative payment methods to the standard Visa card is the lack of trust they sense towards a website. Consumers should be reassured whilst visiting a site in regards to security and privacy, particularly through the checkout process and product pages; so the inclusion of a genuine VeriSign logo confirming this is essential. Displaying company contact details (ideally physical address, email address and telephone number) also significantly helps, assuring people there’s somewhere to turn if anything should go wrong.
Whilst the fear of online crime and fraud maybe more prevalent than the actual realities, online retailers need to offer customers the ability to pay for their purchase through their preferred payment method, if they want to maximise their sales and profit.