The global E-Commerce space has witnessed exponential growth. For E-commerce merchants, small businesses, and online businesses, this has meant many promising opportunities for business growth.
India, in particular, has witnessed a double-digit year-on-year growth since 2014, with $64 billion collected through online sales. The number is predicted to reach $99 billion by 2024!
Despite this splendid growth, one of the most challenging problems that business owners face is boosting conversion rates that have been consistently declining, especially in India. One of the prime reasons for this is the fact that the online shopping experience remains far from perfect despite exciting technological disruptions. This leaves room for prospects to drop out of the funnel. This is said to cost over $18 billion in terms of revenue for E-commerce businesses.
How poor checkout experience hampers growth
Businesses globally are losing around 70% of customers to cart abandonment, which happens between the cart stage and order fulfillment. This is the case even after spending over 30%-40% of their budget on customer acquisition. Furthermore, when businesses employ a variety of checkout tools and plugins to reduce cart abandonment, things get excessively complicated, time-consuming, and have a negligible, small return on investment.
Here are some of the most impactful reasons why users abandon their cart:
1. Repetitive fields
Your customers expect convenience and instant results. Requiring them to create a new user account, re-enter personal information, billing addresses, card numbers/UPI IDs, and shipping information can cost your customers a lot of time and effort.
This may lead to frustration and cart abandonment. The importance of a good UX cannot be over-emphasized, especially during the checkout process.
2. Complicated checkout
Customers expect that the checkout process will be seamless, without distractions and unnecessary details and forms. Poor UX can lead to unease and be a significant source of friction and interrupt the checkout flow.
3. Lack of coupons
Studies show that 46% of shoppers abandon their cart because they can’t locate a coupon code or if the coupon code does not work. These customers then prefer to wait until a discount coupon appears and inevitably find a better bargain elsewhere.
4. Lack of COD option
Despite the digital payment revolution, Indian customers are still wary of making online purchases. This is because of the convenience that COD offers. Customers can cancel anytime, inspect and review the product and then pay for it with cash.
As data shows, over 65% of online shopping is done via Cash on Delivery, thus proving the undisputed fact that Cash is king. However, 50% of businesses do not offer COD due to challenges such as:
- A 30% return-to-origin rate
- Additional logistics challenges
- The Possibility of cancellation
However, despite the high costs and low margins, businesses must cater to customers who prefer COD.
Razorpay’s Magic Checkout replaces the current standard checkouts to make online shopping faster, safer, and more convenient. It is no joke to ask a shopper to fill more than 15 forms in total to make a single purchase.
Magic Checkout presents a data-driven, one-of-a-kind end-to-end checkout solution that not only boosts order conversion rates but also lowers Returns To Origin (RTOs).
Razorpay Magic Checkout at a glance
1. Optimised, fast checkout
Imagine never having to re-enter your personal details, addresses, or fill out long forms on any website/app ever! That is what Magic Checkout intends to do; it saves shoppers’ information once during purchase and automatically prefills that information at all stores in its network for all future purchases.
This gives first-time shoppers a return-like experience, resulting in a 20% increase in order conversion rates! Moreover, Razorpay is uniquely positioned to offer Magic Checkout, given its industry-leading payment management solution – whereas now, it is extending it to end-to-end checkouts.
2. Reduced COD RTO
Magic Checkout’s most favorable feature is its option to provide Cash-On-Delivery to your customers while resolving the challenges associated with it. It integrates directly with your logistics providers and adds a layer of intelligence on top of it to make the process even smoother and smarter.
By leveraging multiple data points, customers’ shopping patterns across all websites in its network, history, and other signals, Magic Checkout automatically detects risky and fraudulent orders by calculating a user’s propensity to RTO the product. Based on that, it decided who should be allowed to pay via cash-on-delivery. This puts the vendor at ease, knowing that they aren’t extending a convenient payment option to an unreliable customer.
3. Reduced cost of COD RTO
Return-to-origin costs on COD orders are completely protected with Magic Checkout. This means that if any COD order is determined to be returned to its origin despite real-time checks, the seller will be compensated for the reverse logistics costs.
Ushering in the future of e-commerce with Razorpay
Razorpay is committed to offering uncomplicated, clear, and effortless payments for both the customer and the vendor. It is a one-stop solution that provides an end-to-end, hyper-optimized rich UX checkout experience.
By taking away all redundant steps in the checkout flow, Razorpay aims to battle cart abandonment for your business and boost conversions like never before.