Study Finds that Merchants Lose As Much As 36% of Sales Due to Online Checkout Frictions
Study Finds that Merchants Lose As Much As 36% of Sales
Due to Online Checkout Frictions
The PYMNTS.com and BlueSnap Checkout Conversion Index benchmarks
how well online merchants convert shoppers to buyers
Boston, MA – Twenty years after the launch of the commercial Internet, most merchants still fail to optimize the online checkout experience for the customers who visit their virtual storefronts. The result is that they stand to lose as much as 36 percent of sales due to the frictions that remain from discovery through checkout. This is only one piece of the online buying experience. Merchants could lose additional sales during payment processing.
These are the findings of the new Checkout Conversion Index (CCI), launched today by PYMNTS.com, in collaboration with BlueSnap, a leading provider of global, mobile checkout solutions. The PYMNTS.com Checkout Conversion Index is a quarterly report that benchmarks the performance of 650 merchants across 14 merchant categories against 46 attributes that define the optimal online shopping and checkout experience. The Index provides insight into what’s causing checkout conversion issues, as well as what merchants can do to overcome them.
The first CCI Index score is a 62, which means that in terms of converting shoppers to buyers, the average eCommerce site is performing only slightly better than average.
“That’s not exactly great news for online retailers,” said Karen Webster, CEO of PYMNTS.com. “With online sales possibly hitting $105 billion this holiday season, this means that merchants are missing out on making nearly $38 billion more.”
Some of the interesting results The Checkout Conversion Index found include:
- The best sites deliver results in a speedy 134 seconds – just over two minutes.
- Size doesn’t matter: the average Index ranking between small and large companies was relatively similar.
- 93% of the best sites provide trusted security logos when checking out to let their customers know that they care about their financial data and will safeguard it.
- The Automotive Parts & Accessories industry came in with the highest score of 91.
“We work with merchants daily and see this problem, firsthand,” remarks BlueSnap CEO Ralph Dangelmaier. “Worse yet, many merchants don’t even know that they have a problem – or the magnitude of it. That’s why we wanted to do something to shine a light on the problem so that we can raise awareness of the problem and, more importantly, help merchants overcome them.”
To view more findings from the PYMNTS.com Checkout Conversion Index, you can download the full report here.
Note to editors: This edition of the PYMNTS.com Checkout Conversion Index studied online checkout process, everything that happens before the buy button is pushed. This is the first of two issues in the online shopping experience. The next edition of the Index will include results of the friction that arises during payment processing, after the buy button is pushed.
PYMNTS.com is reinventing the way in which companies in payments create and share relevant information about the initiatives that shape the future of payments and commerce and make news. This powerful B2B platform is the No. 1 site for the payments and broader commerce ecosystem by traffic and the premier source of information about “what’s next” in payments. C-suite and VP level executives turn to it daily for these insights, making the PYMNTS.com audience the most valuable in the industry. It provides an interactive platform for companies to demonstrate thought leadership, popularize products and, most importantly, capture the mindshare of global decision-makers. PYMNTS.com also produces a number of proprietary data assets and sector trackers, including The Store Front Business Index. PYMNTS.com, where the best minds and best content meet on the Web to learn “what’s next” in payments and commerce.
BlueSnap is a global payments technology company that optimizes global, mobile checkout and drives higher payment conversions by as much as 40 percent for eCommerce merchants worldwide. Their Powered Buy Platform fuels the growth for businesses eager to serve the global consumer and take advantage of the incremental sales opportunities that they represent. Learn how BlueSnap is fulfilling its promise to eliminate friction and convert more shoppers to buyers worldwide at home.bluesnap.com
Contact For PYMNTS.com
Contact For BlueSnap
Kimberly Rowell, BlueSnap
(781) 790-5014(o) (617) 816-5774 (m)