What makes your customers abandon their purchases at your website and move onto a competitor’s? The latest findings show that as much as 70% of consumers in the United Kingdom abandon their shopping carts before checkout. Unfortunately to merchants, this is not a trend that only takes place in the UK; other markets show similar patterns.
The reasons for cart abandonment are various. Poor website navigation, an unclear delivery policy or inefficient customer service can chase away your potential customers. Often regarded by merchants as a secondary reason for cart abandonment, the lack of desired payment methods is an important factor that your potential customers will take into consideration during the purchase decision-making process. Failure to deploy a widely-used payment method might have quite a negative impact on your online sales. This impact can be even more significant for businesses with high cross-border sales volume, since different markets support and prefer different methods; such is the case of the European region and its tremendously fragmented payment arena.
It is not by chance that merchants choose not to deploy a given payment method. The risk of fraud associated with certain methods is probably the reason why merchants stop offering those methods to their customers. Merchants have learnt that e-wallet accounts might be subject to hackers’ attacks, resulting into unauthorized transactions coming to their e-shops, for instance. The illegal market offers full credit and debit cards details, including CCV codes, which fraudsters can use to place legitimate-looking orders at websites that will eventually result in fraudulent chargebacks. Given this scenario, it is not surprising that merchants avoid deploying certain methods in their e-shops, even if that implies a potential decrease in their sales.
What can e-merchants do to avoid online fraud originating from so-called “risky” methods?
Online fraud should not be a determining factor when deciding to deploy a particular payment method. As much as merchants’ concerns are understandable, an effective fraud management system should be able to detect fraudulent orders originating from any payment method thus keeping your customers’ and your corporate objectives safe. Comprehensive fraud protection systems using a wide variety of verification tools have strong technical support that enables them to detect and block only those orders that are really fraudulent. These systems not only keep your business safe, they also increase the number of genuine orders accepted, which eventually lead to real and sustainable business growth. Check out how CashShield can help you reduce your cart abandonment rate and achieve higher business growth!