So – how do you ensure your checkout process is smooth and optimised?
On the 11th of July, we brought together a select group of 30 senior e-commerce leaders to join us for breakfast at the iconic Groucho Club in Soho London, alongside BigCommerce and Stripe, where the guests immersed themselves in a conversation surrounding both Big Commerce and Stripes respective reports ‘State of European Checkouts’ and ‘E-commerce at Hand’. The morning centred around a panel discussion on understanding the evolving habits of European online shoppers, and how to effectively target new audiences and leverage technology to streamline operations, reduce cart abandonment, and create a one-page checkout that’s fast, secure, and user-friendly.
The panel, moderated by Michaela Weber, SVP & GM, Payments & Global Business Development at BigCommerce, and Joining her were:
brought about an in-depth discussion around the findings from both reports, focusing on how and what e-commerce businesses should and are doing to ensure that they deliver on consumer expectations. And more importantly, what the future of e-commerce looks like.
There are several important trends in e-commerce and retail in the post-pandemic world, particularly the growing integration of physical and online shopping, better known as Unified Commerce. Since the pandemic, there has been a noticeable increase in sophistication among merchants, with many brick-and-mortar stores accelerating their entry into e-commerce. This shift aims to create a seamless customer experience by merging online and offline shopping. Achieving this integration can be challenging, but when brands succeed, the results deliver a more personalised in-store experience, especially at checkout—supporting the goal to draw customers into physical stores, not just rely on online sales.
Following the pandemic, shoppers now expect more. From the ability to order everything via mobile devices, have their orders fulfilled instantly, and complete purchases with a single click. The demands are there and need to be addressed by retailers and e-commerce sites to ensure frictionless shopping experiences. Additionally, there is a growing trend of brands focusing on international expansion. Companies are increasingly seeking advice on which countries to enter, local payment methods, regulatory requirements, and costs associated with it. Requiring brands to ensure that their checkout processes are localised for international consumers, not only through translations but also by using the correct currencies and payment methods.
Ash Pallet, Senior Digital and e-commerce Manager at Sarah Raven shared insight into how the business is very hands-on. Many of their ranges sold online are hand-curated by Sarah; with a farm in Perch Hill, which is not only her home but also the garden where she trials all the products they sell—aiming to create theatre and drama on our website so customers feel like they’re buying into this beautiful garden experience, regardless of their own garden’s size.
In terms of brand journey and digital transformation, Sarah Raven moved to BigCommerce in 2021:
“The re-platforming took about 13 months due to the complexity of our business. From the relaunch in June 2021 to December of that year, our conversion rate increased by about 25% globally. This set the foundation for further business growth. We also focused on mobile optimisation and SEO, which enhanced on-site search and led to increased sales.”
Looking to the future, this year, they’re concentrating on leveraging existing tech stacks and understanding how to make them more commercial while identifying and addressing gaps. For instance, in January, Sarah Raven launched a bundling platform called Increasingly, which was immediately successful. In Q1 alone, they drove £250K in incremental sales through this bundling software on their product detail pages. Bundling keeps customers online longer by simplifying the payment process with one-click payments. Since transitioning from a legacy system to enabling Stripe, their cart abandonment rate has been reduced by 40%.
A part of the Big Commerce ‘E-commerce at Hand’ report analysed the checkout flows of major e-commerce and subscription businesses across Europe. The key finding is that 91% of European e-commerce sites have at least five easily solvable errors in their checkout processes.
When optimising checkout processes, it’s crucial to focus on speed, security, and convenience.
Speed a key factor here, as 66% of respondents indicated they would abandon a checkout that takes longer than two minutes, which is an issue for most e-commerce businesses, as the average checkout time is currently three minutes. So working on reducing this time is essential. Another key factor is security; with most respondents indicating they would view a brand negatively if its website appeared insecure. By adding security features like Verified by Visa, businesses can help reassure customers and build trust.
Ensuring the checkout process is responsive and user-friendly across different devices is another factor businesses need to consider. High responsiveness is necessary for a smooth user experience, which with 78% of respondents stating they are more likely to complete checkout if the process is optimised for their device. This emphasises the need for mobile-friendly designs and quick loading times to enhance customer satisfaction and reduce cart abandonment rates.
The report also looked at mobile checkout optimisation and expanding e-commerce operations. When expanding internationally, it is crucial to ensure that the checkout process is localised. This means having the appropriate payment methods and accommodating local preferences and regulations. In doing so, businesses can significantly enhance the customer experience and improve conversion rates in new markets.
Additionally, it’s advised retailers to integrate subscriptions into their business models. Converting one-time purchases into recurring subscriptions can be beneficial, whether on a monthly or quarterly basis. To make this transition successful, it is essential to ensure the subscription process is seamless. This can be achieved by offering incentives like discounts and free trials as well as providing consumers with control over their subscriptions. For instance, allowing customers to pause or restart their subscriptions through a user-friendly interface, can enhance customer satisfaction and loyalty.
Buy Now Pay Later (BNPL) was both a hot topic at the event and further afield. 50% of BigCommerce customers who have ‘BNPL’ enabled use it across two or more channels. Recently, Stripe performed an A/B test of over 150 checkout sessions, revealing that BNPL can increase incremental sales by an impressive 66%.
If a brand’s average basket is between £5 and £15, it is questionable whether BNPL will be worth it. However, brands with a higher average order value (AOV) should consider implementing BNPL. Although, BNPL is not for everybody—one of the concerns is that it is a more expensive payment method—nor does it suit every brand. However, according to Stripe, those who have switched to BNPL have not reverted to their previous payment methods. In response to this Stripe has created software that automates the decision of which BNPL type each customer and product should be directed to. As a result, a brand can have multiple BNPL options running simultaneously to fit various needs, though Stripe recommends having no more than four BNPL channels.