We all know that online shopping is a booming force that’s here to stay. Global ecommerce sales accounted for US$6.33 trillion in 2024, an increase of almost 9% from the previous year, and it’s expected to keep growing.
And, as convenience and choice of buying online becomes non-negotiable for shoppers, online retailers have taken notice, investing large sums of money to drive interest in their products and bring shoppers into their virtual shopfronts.
Yet too many overlook a critical factor in maximising their return on investment — the checkout experience. While getting customers in the virtual door is one thing, this is a critical conversion point for retailers to capture revenue that would otherwise be lost.
A complicated checkout is lost revenue
Online retailers have focused on increasing traffic to their sites by paying for ad campaigns, running promotions and harnessing partnerships, but that isn’t enough to drive the final click that completes the sale.
With the average cart abandonment rate 70%, according to the Baymard Institute, failing to prioritise the checkout experience is leaving money on the table for ecommerce retailers. It’s a hidden but costly mistake that undermines their advertising investment — and it’s one customers won’t stick around to forgive.
Customers cite many reasons for not finalising their sales, such as long, complicated checkout processes, surprise fees, limited payment options and lack of trust in securing their payment information.
The good news for online retailers is that these issues can be resolved by making design changes to the checkout process, substantially improving the conversion rate and recovering potentially millions in lost orders.
Less friction = more value
With customer acquisition costs on the rise due to increasing competition, higher advertising expenses and changes in data privacy regulations, online retailers need to get the most from their marketing spend.
The checkout is one place where small changes can make a big difference. Removing friction at the point of payment improves sales. It opens the door to repeat purchases and maximises the lifetime value of each acquisition.
Features like one-click checkout, auto-filled payment details, and flexible payment options make buying easier and reduce the chances of shoppers dropping off at the last step.
Solutions like Shop Pay, offer one-click checkout options that can dramatically simplify this process. It’s been independently verified to convert up to 36% better than all major commerce platforms.
But this streamlined process doesn’t just lift the conversion rate. It reduces the cost of acquiring new customers, which represents a sizeable proportion of marketing budgets. It lets online retailers unlock sustainable business growth and free up budget for other marketing initiatives such as customer retention and brand building.
Be personal and build trust
The design and flow of the checkout is often the single reason customers abandon their cart, but improvements can deliver up to a 35% increase in conversions.
By adapting to customers in real time to streamline the process, an intuitive, streamlined checkout supports customers to complete their purchase.
This is especially important for a first-time buyer, who might need a little reassurance in the form of visible trust badges, reliable payment methods, or a clear returns policy. A returning customer doesn’t want to type in their details again, they appreciate being recognised so they can quickly check out and get back to their day.
At a time when customer acquisition costs are rising and shoppers have endless options, checkout isn’t just the last step in the funnel, it’s a competitive edge. A high-converting checkout ensures more customers complete their purchase, leading to more sales for online retailers and stronger relationships with their customers.
A simple, secure transaction with no extra steps feels invisible to customers — but goes a long way to increase consumer trust, and keep them coming back.
Shaun Broughton is managing director for Asia Pacific & Japan at Shopify.