In 2016, the eCommerce industry generated over $1.9 trillion in revenue. According to eMarketer, this double-digit growth of online payments will continue to rise and in 2020, we can expect it to climb up to $4 trillion in sales.
The amount that we’re spending online accounts for almost 9% of all global retail spending. However, in the following period we also expect this figure to change as well. By 2020, 14.6% of total spending in retail will be conducted online.
Online payments landscape
At the moment, approximately 79% of US citizens shop online. In Europe, this figure is somewhat reduced, and only 65% of EU citizens reported that they’ve made an online purchase in 2015. But this accounts for the entire region of course, and if we take a look at countries individually, we shouldn’t be surprised to find out that more than 81% of population in UK made a purchase online in 2016. Followed by France, Germany and Netherlands; it is evident that while some regions of EU are falling behind a bit, others are dominating the market.
But what it lacks in numbers, this region makes up in innovations. Approximately 50% of stores in EU have 3 or more channels of acquisition active. This includes websites, social networks, email marketing, etc.
It’s evident – more and more users are shopping online. Along with the upcoming rise in online payments, we are also witnessing a rise in customers’ expectations.
User experience is one of the most important aspects that your business needs to address if you want to keep growing your online presence. But what are customers actually expecting from online retailers? Which factors are decisive and which one make them abandon their carts with purchases uncompleted?
Focus on mobile
A few years ago, eCommerce vendors and webmasters witnessed an interesting trend in consumer behavior. The great majority of users used their mobile devices to compare prices and find online deals, but only a small percentage of those interactions ended on mobile. Users tend to get informed on their phones, but when they want to make a purchase – they prefer desktop devices.
However, this trend is experiencing some significant fluctuations lately. In 2016, more than 51% of Americans reported that they’ve made a purchase via mobile device. With younger generations, we are also getting more and more shoppers who prefer to browse for products, compare prices, and finalize their purchases via mobile device.
In the following period, it is expected that we will be able to complete purchases through social network apps, which will make at least one acquisition channel, your website, a less valuable asset. And in this new, sharing economy, retailers should know that customers will have much higher expectations from your mobile shops. So, check your website’s mobile loading speed, and consider implementing AMP to your future campaigns.
Invest in payment options
With such a demanding, and ever-growing crowd to please, retailers are always on the lookout for new technologies and innovation that could help them reach their customers faster. However, retailers also tend to neglect some of the most important aspects of their online stores.
Mobile speed is definitely a decisive factor, but do you know what is the number one cause behind 70% of uncompleted purchases? The answer is quite simple – bad user experience. Instead of focusing on value, it seems that the global trend among retailers is to force registrations, push notifications, and investing heavily in remarketing campaign.
The reality is – you shouldn’t treat your online store any different than your traditional, physical shop. As one would do anything to improve the experience that they are delivering to the customers in person, the same should be applied on your online shop. That means frictionless navigations, no hidden costs, user friendly interface and a safe connection for your users.
How can Alternative Payments help in fulfilling customers’ expectations?
Alternative Payments can offer a variety of checkout integrations. The custom payment widget, for example, can be integrated in your check out process, in order to fulfil all customers’ expectations. It comes with a completely customizable interface, but what is more important – Alternative Payments provides your users with their favorite payment options. Based on their location, our widget presents them with their local currencies, in their own language, and with their preferred payment gateway. Not to mention that local support is also included.
With so many retailers investing time and money in coming up with new ways to attract customers, Alternative Payments provides you with a much-needed edge over your competition.