The Webretailer News Digest for January 17, 2023
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On Friday, we reported that, as of January 31st, offsite (third-party) Amazon sellers can put a ‘Buy with Prime’ badge on their site. The retail giant has finished its testing on the program that began back in April. And the results are clear: it’s a success. Amazon stated ‘Buy with Prime’ participants increased shopper conversion by 25% on average.
What does this mean for online sellers?
This is another example of expanding payment options across the globe. And with new FinTech solutions on the horizon, it won’t be the last.
We highlighted payment options expansion as an ecommerce trend to expect in 2023. And help you weather the coming downturn, we’ve got helpful insights on why you should and how you can expand your payment options to generate more revenue this year.
Expanding Ecommerce Payment Options in 2023
Why online retailers should expand payment options
Faster transactions are on demand from online buyers who also want security assurances at checkout. According to Statista, customers used mobile and digital wallets in around 49% of global eCommerce payment transactions in 2021. And that number will increase to 53% by 2025. For reference, customers made 21% of transactions with credit cards.
Customers are filling online wallets instead of applying for credit cards. And if you don’t have those options available on your site, you’ll miss out on a lot of potential revenue. There’s now an expectation for multiple payment options, and customers could see it as a red flag if multiple options aren’t available.
What payment options should online sellers add to their store?
PayPal
Paypal is one of the most renowned online payment solutions in the world and boasts an impressive 254 million active users. The platform reports conversion rates 82% higher than other options, and it gives users another way to bypass having a credit card.
Adding Paypal will undoubtedly benefit both you and your customers. And integrating it into your checkout isn’t difficult. PayPal charges 30 cents plus 2.9%, so it can be a cost-effective solution that gives your site more validity.
Apple, Google, and Amazon Pay
Back in 2017, CNBC reported that over 64% of Americans own an Apple product — and six years later, not much has changed. There are currently over 25 million Google Pay users and Amazon has reported over 50 million using the Amazon Pay UPI.
There are millions and millions of users using these platforms, and they’re some of the most recognizable brands in the world. Having these logos on your site adds convenience and trust with your customers.
Buy-now-pay-later (BNPL)
Analysts estimate the BNPL market to grow by $41.8B by 2026. And at the end of November 2022, Adobe Analytics reported a 13% increase in BNPL usage — during the holiday high season.
In a sign of the times, customers are using buy-now-pay-later solutions more than ever. If you’re not offering BNPL options though Stripe, Klarna, or another provider, you’re missing out on sales. These options put the payment burden on the provider anyway, so you’re not liable if the customer doesn’t pay.
More Information
If you need more reasons to add BNPL to your site, we’ve got you covered.
A2A (the future)
You can add the solutions above to your online store right now. But if you want to stay ahead of the curve, pay attention to developments in ‘account-to-account’ A2A payments.
Many merchants and customers — probably yourself included — are sick of paying interest rates to credit card companies. To bypass this, companies are coming up with solutions that allow secure payments directly from one account to another with no middle person — especially in Europe.
We don’t know how fast these solutions will develop as there’s a lot of bureaucracy involved. But we’re sure that you and your customers will benefit when it all gets sorted out.
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I am sure a lot of sellers will benefit from this, if the idea is properly policed.