According to the Baymard Institute, $260 billion are recoverable through checkout optimizations. An eCommerce site can achieve a 35.26% increase in conversion rate through better checkout design. And too long or complicated of a checkout process is the third most popular reason consumers abandon a shopping cart. This means that the large portion of cart abandonments by the consumers in the eCommerce industry is simply a natural consequence of how the users browse their eCommerce websites. That is why merchants should heed attention to the checkout experience for the users. One-click checkout is an effective concept that is gaining much traction in the eCommerce market these days. This not only eases and simplifies the process but also drives up the conversion rates.
The concept of one-click checkout started in 1999 when eCommerce marketplace Amazon patented the concept to represent the breakthrough of the idea for the hassle-free and seamless online shopping experience for the users. However, the patent expired in 2017 and now is free for any merchant to use through its eCommerce platform.
What is One-Click Checkout?
As the name implies, the one-click checkout feature is when customers place an order and purchase the items within a single click. Well, the merchants should opt between the checkout systems that either offer gateways or full platforms. The customers just need to fill in their payment details once including their name, email address, shipping and billing address, credit card or debit card details, UPI number etc. This payment information is stored in their processor, allowing them to breeze through the online checkout experience in a single click. Transactions are only possible when the customers are willing to use the same credentials for online shopping. Thus, this eliminates the clunky experience and relive the stress of the customers to re-enter the payment details every time while making any purchase.
The new-age payment methods that nowadays the buyers see like “Buy Now”, and the UPI option directly on the checkout page without having to log in or enter any card details.
Why is One-Click Checkout Necessary?
If we follow the traditional payment method concept, the customer has to click on the “Add to Cart” icon and then go for the checkout process. Well, this is not exactly done. Then, the customer has to set up the profile and has to add the relevant payment details including credit or debit card number along with the correct expiration date and security code. And finally, then click “Confirm”. With this long and cumbersome process, most customers don’t bother and drop the idea of shopping from the site. The harder you make things for the customers, the less likely they are going to buy. Here, one-click checkout payment plays a vital role in making the checkout experience better and faster. This also helps in reducing the chances of cart abandonment along the way.
Many merchants are reluctant to adopt the new payment method because of the reasons such as that it could disrupt their website’s infrastructure and can also misuse the customer’s personal information. Turning to third-party service providers that are trustworthy and offer a one-click payment option is an efficient way for eCommerce merchants to protect their users from online fraud. Also, the checkout platforms typically charge reasonable standard prices per transaction along with the charges of using the platform.
Benefits of using One-Click Checkout
- Seamless Payments
The swift and easy checkout capability is what customers need while online shopping. Thanks to one-click checkout features that make the online shopping experience as seamless as possible.
- Quick Purchase
Most customers abandon or drop the shopping cart because of the long and tiring checkout process. But, the one-click checkout payment method impulse purchasing rates and thus, improves sales and customer retention.
One-click checkout provides the merchant with complete control over the integration and customization of the system. The merchant can track the customer’s payment details and can manage all the transactions in their specified account.
- Secured Platform
The checkout systems are protected by security standard guidelines as set by the Payment Card Industry Data Security Standard (PCI DSS) to ensure secure transactions and prevent any fraudulent activities. Also, the information stored in the payment details is encrypted to keep the crucial data of the customers safe and secured.
- Transparency & Trust-worthy
This is the biggest advantage of using one-click checkout services is that it offers transparency, trust and confidence to the customers and even merchants.
- Easy Cancellation of Purchase
Once the customer hits the “Buy Now” button, rather than initiating the payment immediately, the system will notify the customer to confirm the transaction. In this way, they can cancel the purchase.
If you think that only big companies need to have comprehensive checkout processes, then you’re mistaken. Having an effective checkout platform and making an effort to improve the customer experience is a smart move for any size business, whether you have one customer or a thousand. One-click checkout method is extremely beneficial to eCommerce merchants and provides a better experience to the customers. With a lot of competition in the market, the merchant should consider enhancing the marketing, customer experience and overall sales for driving potential business growth.