Optimising your checkout to increase conversions

Checkout conversion rates represent the percentage of shoppers who complete a purchase after initiating the checkout process. They’re a key indicator of an e-commerce website’s efficiency and user-friendliness. Optimising this metric is crucial because it directly impacts revenue. A smooth, hassle-free checkout experience reduces friction and encourages more customers to finalise their purchases.

Optimising the checkout process can significantly boost conversion rates, turning more website visitors into paying customers. An ideal checkout flow is streamlined, intuitive, and fast, minimising distractions and hurdles like excessive form fields, unclear payment options, or surprise costs (like shipping fees). Studies show that the average cart abandonment rate hovers around 70% across e-commerce platforms. This means seven out of ten shoppers abandon their purchase after adding items to their cart, leading to massive revenue loss. In fact, global e-commerce businesses lose an estimated $18 billion annually due to cart abandonment.

By improving the checkout experience, businesses can reduce this abandonment rate. Research indicates that optimising the checkout process can recover up to 35.26% of lost sales. This simple improvement could mean the difference between stagnant revenue growth and exponential success. A smoother checkout improves conversion rates, increases customer satisfaction, and encourages repeat purchases, leading to long-term revenue growth.

A seamless checkout process is directly tied to increased revenue. Long or complex checkout procedures frustrate users and lead to drop-offs, especially on mobile devices. In contrast, businesses with a simplified, user-friendly checkout process see significantly higher conversion rates, translating to more completed transactions and increased revenue. Offering multiple payment methods, autofill options, and eliminating unnecessary steps can drastically reduce friction.

For businesses serving international customers, checkout optimisation becomes even more important. Global e-commerce brings complexities like currency conversions, localised payment methods, and international shipping logistics. Customers from different regions have varying expectations and preferences, so offering multiple language options, displaying prices in local currencies, and accommodating region-specific payment methods can drive higher conversion rates. Poorly optimised checkouts for international audiences often result in higher abandonment rates due to confusion or lack of trust.

Recent research by IMRG on e-commerce checkouts revealed that the average checkout conversion rate is just 58%, with the average checkout abandonment occurring at nearly 90% of the typical length it takes to complete a payment. In terms of complexity, the research also found the industry average conversion rate for retailers with a single-page checkout to be higher (61%) than a multi-page checkout (56%).

The research went on to explain that the more pages there were during checkout, the lower the conversion rate. It found that on page 1 of a multi-page checkout (the customer information page), there is a high average conversion rate of 89%. This falls to 82% on page 2 (the shipping page), while only 77% of customers convert on the final page. Indeed, retailers can expect conversion to drop by 5-7% as customers progress onto each page of the multi-page checkout.

On average, a retailer who starts with 5,000 customers will have 2,809 customers who progress to payment, showing an overall conversion rate of 56%.

A checkout conversion rate measures the percentage of customers completing a purchase after initiating the checkout process. It's a crucial metric for e-commerce businesses, reflecting the efficiency of their checkout flow. The goal is to maximise this rate by minimising the obstacles that can lead to cart abandonment.

Optimising checkout conversion rates involves simplifying the process, ensuring transparency, and providing a smooth user experience to drive more completed purchases. It is also crucial for improving conversions and reducing cart abandonment.

A streamlined, efficient, user-friendly checkout can significantly boost your e-commerce business's bottom line. Indeed, several useful strategies can help optimise your checkout and improve conversion rates.

The simpler the checkout process, the more likely customers are to complete their purchase. Lengthy or complicated checkouts often result in abandoned carts, as users can get frustrated, or even lose interest. However, a streamlined checkout reduces friction, helping users finalise and complete their purchase(s) with minimal effort.

A single-page checkout consolidates all checkout elements (billing, shipping, payment, and review) onto one page, minimising clicks and effort. It’s a popular option because it provides a faster experience. However, for complex or high-ticket purchases, a multi-step checkout might be more effective, breaking down the process into clear stages. This can make the process feel more manageable and organised while reducing the risk of becoming overwhelmed. Testing both methods is a great way of helping identify which works best for your audience.

The requirement for users to create an account before checking out isn’t always welcome - indeed, it can lead to friction or even cart abandonment. Having the option of a ‘guest checkout’ eliminates this barrier, allowing customers to quickly complete a purchase without having to sign up fully. At a later date, you can always offer the option to create an account for additional benefits (such as order tracking or future discounts), although this shouldn’t be mandatory.

Not forcing users to create an account allows them to check out faster and reduces friction, especially for first-time purchasers. Many users abandon their carts when forced to register due to time constraints or fear of spam. Whereas offering a guest checkout reduces this possibility, encouraging more completed purchases.

Again, the IMRG research revealed that, with 59% of orders coming from guest customers, it's evident that many shoppers prefer not to register with a retailer when making a purchase. However, although guest customers make up more orders than registered customers, a significant disparity emerges between guest and registered users when analysing conversion rates. The checkout conversion rate for guest customers actually stands at 52%, whereas registered users demonstrate a higher conversion rate of 64%.

This suggests that while guest checkouts may drive higher transaction volume, registered users are more likely to complete their purchase once they enter the checkout flow.

One of the biggest checkout pain points is excessive form filling. Keeping the number of fields to a minimum and enabling autofill options can help speed up the process. This is particularly important for mobile users, as typing on smaller screens can be frustrating. By offering the capability to autofill addresses and store payment details, you can create a smoother checkout experience - and improve conversions.

Offering express checkout options such as digital wallets (Apple Pay, Google Pay) or Click to Pay reduces friction by allowing users to complete their purchases in just a few clicks. These options are especially useful for mobile users, as they eliminate the need to manually enter payment information. Offering a faster and more convenient checkout process will help deliver a higher conversion rate.

A checkout must be easy to navigate and accessible to all users, including those with disabilities. Ensure that your checkout process complies with Web Content Accessibility Guidelines (WCAG), with features like screen reader compatibility, keyboard navigation, and clear visual cues.

Providing visual cues, such as a progress bar or breadcrumb navigation, informs users where they are in the checkout process - and how many steps remain. This can help manage expectations and reduce frustration, making users more likely to complete the checkout.

Ensure your call-to-action (CTA) buttons are prominent and easy to find. Use clear language like “Complete Purchase” or “Checkout Now,” and ensure any buttons are large and responsive, particularly on mobile devices.

Using highly customisable hosted payment pages can improve the user experience by offering a seamless, branded checkout without redirecting customers. These pages also allow for A/B testing, which can be utilised to optimise conversion rates by experimenting with different layouts, button colours, or payment options. Regularly A/B testing different checkout designs and functionalities helps you discover what works best for your audience.

Mobile commerce is growing rapidly, making mobile optimisation crucial. Ensure your checkout is responsive, with large buttons, minimal data entry fields, and autofill features. Poor mobile usability can lead to high abandonment rates, so optimising for smartphones and tablets is essential for capturing more sales.

Slow-loading pages are a common cause of cart abandonment. Optimising images, minimising code, and using a content delivery network (CDN) can improve your page load speed, particularly during checkout, where users expect fast performance.

Payment authorisation failures can cost you sales. Implementing a “try again” feature allows users to switch to an alternative payment method if their first attempt is declined. In addition, using a payment method algorithm can help predict the most successful payment options for users, reducing declines and improving authorisation rates.

If you operate internationally, offering multi-currency support is crucial. Displaying prices in local currencies reduces confusion and helps customers understand costs. Tools like dynamic currency conversion enable people to see prices in their preferred currency, improving their checkout experience.

Providing multiple payment methods is essential to cater to a diverse customer base. Popular options like credit cards, PayPal, and BNPL (Buy Now, Pay Later) solutions such as Klarna appeal to different types of shoppers. Furthermore, offering local payment methods, like Alipay in China or iDEAL in the Netherlands, enhances the experience for international customers and boosts conversion rates.

Building trust with your customers is critical. Displaying security badges, SSL certificates, and familiar payment options like Visa and Mastercard helps reassure users their payment information is secure. Be transparent with shipping costs, taxes, and other upfront fees to avoid any unwanted surprises at checkout, which can lead to cart abandonment.

Use checkout as an opportunity to suggest related products or offer promo codes to encourage customers to add more items to their cart. These techniques can increase your average order value, as well as provide a more personalised shopping experience.

Choosing the right payment provider is essential to ensuring a smooth checkout process. A good payment provider will offer seamless integration, support for multiple payment methods, and features like fraud prevention and payment authorisation optimisation. Working with a provider that offers expert support can help continuously improve your checkout process - and keep you ahead of the competition.

Optimising your checkout process is key to increasing conversion rates and reducing cart abandonment. By simplifying the process, offering guest checkout, providing multiple payment options, and improving usability, you can create a seamless experience that encourages more customers to complete their purchases.

Investing in mobile optimisation, trust signals, and ongoing, continuous testing will help your checkout be as efficient and user-friendly as possible, increasing conversion rates and driving long-term success for your e-commerce business.

Here at Ecommpay, we have a wealth of solutions designed to enhance checkout optimisation further, including customisable hosted payments pages, try again feature, Click to Pay, and currency choice. Can your payment provider do that?