One of my first jobs out of college involved answering billing questions from front end users of software products. Working for an international ecommerce provider, questions came from customers who lived in almost every country under the sun.
With access to a vast database of customer information, I developed a comprehensive knowledge of the elements involved in an online transaction. I understood the negative consequences that occurred when customers found it difficult to submit payment. I found that one way to decrease customer friction in the shopping cart is to make sure that the cart is fully localized for visitors from around the world. There are many parts to localization, but one crucial component is offering alternative payment methods.
Alternative Payment Methods
Did you know that the European Union represents the second largest ecommerce market in the world? And did you know that “less than half of all online buyers in Europe own a credit card.” In fact, there are over 200 types of payments that online shoppers around the world use to create ecommerce transactions. But how many of these payments are offered in your shopping cart? Think about this: Offering four or more alternative payment methods results in a 12 percent conversion rate increase.
Why are you denying yourself this revenue?
Consider A/B testing your cart to prove the ROI of implementing different local payment options. For example by splitting traffic from certain countries in Europe, like Netherlands, and offering half your traffic a cart without iDEAL as a payment method and the other half a cart with the iDEAL payment, it is easy to see which converts better, and justifies any costs associated with allowing customers to transact with it. Now investigate your other top performing countries and the market’s preferred local payment methods and continue to test cart performance.
This infographic from Alternative Payments provides a comprehensive perspective on how international ecommerce relies on alternative payment options, and the benefits of implementing them in your shopping cart.