US consumers are on track to spend over $900 billion on eCommerce sales in 2021, with a year-over-year increase of 17.9% and monopolizing 15.3% of total retail sales. There are over 12 million eCommerce sites across the globe, with more being created daily. Taking payments via the internet may be a time and cost-saver, but how do you choose the right payment methods for your eCommerce business? Let’s explore the concept of eCommerce and how to select a payment method for your enterprise that delights customers and saves your business money!
- eCommerce sites and their evolution
Ecommerce has been around for about 40 years, taking hold as countless businesses realized and took advantage of the internet. Inventor Michael Aldrich created the first electronic shopping method in 1979 by inventor Michael Aldrich, who modified a TV to process an online transaction via an internet phone line. The world’s first eCommerce company, Boston Computer Exchange, was founded in 1982, followed quickly by the launch of eCommerce companies like Amazon, PayPal, and Alibaba in the 1990s. COVID-19 has further increased our reliance on eCommerce channels for almost everything we buy. So how do you take advantage of all the recent developments in eCommerce to build your business?
- What are online payment methods?
The name of the online payment game is “simplicity and security.” Therefore, it’s essential to choose a reliable and established payment method that doesn’t jeopardize your customer’s financial information but is also easy and reliable to use. Platforms like PayPal offer a fast and easy transfer of funds, but not all digital payment trends are created equal.
- Why should you offer different payment methods?
An eCommerce business may offer the best product or service on earth, but they are unlikely to dominate the market if the payment method is too complicated or untested. One of the biggest benefits of eCommerce selling is your ability to reach a world of consumers, not just one country, state, or local area. Therefore, it’s essential to give your customer (domestic and international) an array of different payment options, including debit or credit cards, P2P, and mobile wallets, to name a few. But how do you determine the best payment methods for your eCommerce store?
- How to choose the best payment method for your eCommerce store?
You must determine the best payment method for your business by determining which methods suit your product and business methods and which ones please your customers. For example, if you choose to accept only one payment method (let’s say credit cards), there is a chance some customers won’t be able to patronize your e-store! Therefore, you must choose a range of safe and tested payment methods to give yourself the best chance of success.
- What are the most popular payment methods in eCommerce?
The most widely used payment methods are credit and debit card purchases, as they are fast and trusted globally, as a traditionally safe payment method. In addition, some customers rely on prepaid card payments, where virtual currency is stored, and there is no option of accidental overdrafts or fees. Bank transfers were once a vital part of eCommerce but have recently given way to e-wallets, where merchants and customers sign up to use their secure and fast services. Finally, mobile payments dominate the market, surpassing PC use in recent years.
- What is a payment gateway, and how does it work?
Many eCommerce enterprises use an eCommerce payment gateway or an established digital payment platform designed for ease of use and security. These platforms create a secure link between the bank and the user, meaning quick and easy checkout and encryption of the customer’s personal information. In addition, companies that offer this service are often trusted names like PayPal, Apple Pay, or Google Pay, adding an extra element of legitimacy and recognizability to your business.
- Benefits of including payment gateways for your eCommerce business?
The biggest benefit of using a payment gateway is the security you guarantee for customers. These payment avenues are tested, monitored, and optimized for fast service and ease of use, elements customers value above all others. It’s also important to remember that all customers and preferences are different. These platforms have options for all types of users and can easily and automatically tailor the payment experience for each customer without putting pressure on the seller at all!
Adopting the right payment methods for your eCommerce business could make the difference between success and failure. If you can’t get payments or customers don’t trust your site or methods, your eCommerce store will certainly fail. However, even elements like providing links and options for deals on other sites can help you stay competitive in the market and keep your customers coming back for more high-quality products.