Is One-Click Checkout Right for Your Business?
Convenience is everything in today’s world and e-commerce is no different. Providing your customers with simple options that make the checkout process easier is a great way to encourage repeat business and minimize cart abandonment.
But is one-click checkout the right choice for your business? Keep reading to find out.
What is One-Click Checkout?
One-click checkout enables repeat customers to complete a purchase on your website without re-entering their information. If this process sounds familiar, that’s probably because it is. Amazon originally created and deployed one-click check out for its own business and at the time, they owned the patent on it, which meant it was the only company able to use the technology. However, in 2017, the patent expired and now merchants everywhere are able to adopt it for their own websites.
With one-click checkout, shoppers are able to store their address and payment information on your website for future purchases. Their information is encrypted and stored securely by your payment provider and when the shopper logs into your website in the future, your website can recall their information and auto-fill forms for a quick, hassle-free checkout process.
The Benefits of Using One-Click Checkout
One-click checkout is a great way to make it easier for your customers to purchase an item quickly and conveniently. Using the technology on your own website can actually increase your conversions. According to Dynamic Yield, a market research firm, 71.68% of online shoppers abandon their carts with 21% of those shoppers saying they abandoned due to a lengthy and inconvenient checkout process. That goes to show that a quicker checkout process has the potential to increase conversions.
Other benefits of one-click checkout include higher impulse buy rates and a broadened customer base thanks to information stored in your system from past one-time buyers. Provided you’re complying with anti-spam legislation, you’ll be able to use their stored information to market to a wider audience and, hopefully, encourage repeat business in those who wouldn’t otherwise return.
Risks of One-Click Checkout
While one-click checkout is a useful tool to keep repeat business booming, it’s not without risk.
Chargeback rates tend to be higher in businesses that offer one-click checkout, and while some cases tend to be the result of buyer remorse from impulse buys, they’re most often because the process is so convenient that shoppers don’t take time to read the fine print.
In the event your customer doesn’t take time to review shipping or tax charges, the amount they pay for their purchase could come as a surprise when it appears on their credit card statement and often, that could result in a chargeback.
If you plan on utilizing one-click checkout for your e-commerce business, it’s crucial to make all charges and fees obvious for your customers.
Is One-Click Checkout Right for You?
It depends. If your business doesn’t instill service or shipping charges, chances are you won’t be taking a huge risk when it comes to chargebacks and if that’s the case, one-click checkout could be a great way to drum up some extra repeat business.
However, if you pass shipping or service charges on to your customer, it’s a good idea to consider this when determining if you want to offer one-click checkout.
Additionally, if you already have a relatively high chargeback ratio, it might be best to take any measures you can to avoid extra chargebacks and that means not introducing one-click checkout as a way to pay.