Online Shopping Behavior Is Changing Fast. Are You?

We are seeing the behavior of online shoppers changing fast, but are retailers keeping up with the pace? Well, not according to online shoppers themselves, who are abandoning their shopping carts in frustration. So, what are their pain points and how can you solve them? Hint: It all comes down to one rather simple thing.

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This may not come as a shock, but mobile shopping is set to soon dominate online retail in the US market. It’s expected that by 2021, 53.9 percent of all shopping will be done on mobile*.

What may come as a shock, however, is that although we are aware of this shift, only 12 percent of consumers find shopping on mobile devices to be convenient. And it doesn’t end there. Cart abandonment rates are highest on mobile, averaging 81 percent in the US – much higher than on other devices**. How come online retailers are failing to respond to their consumers’ demands? Are the requests too big for merchants to handle? Well, let’s have a look at the top sources of irritation among consumers:

  • Limited payment options
    56 percent of shoppers say they would buy more if there were more payment options available.***
  • Lengthy checkouts
    75 percent of US shoppers list the speed of checkout as one of the most important shopping factors.***
  • Poorly designed mobile sites
    73 percent state that they abandon poorly designed mobile sites in favor of those that make purchasing easier.****

Having a look at the pain points above makes it quite clear that it comes down to one thing: Mobile shoppers simply want to finalize their purchase with a hassle-free payment method that suits their needs. Fortunately, the problem is quite easily fixed by adjusting your checkout. All you need to do is provide your customers with several payment options in a fast checkout designed for mobile. That’s not too much to ask for, right?

By simply adding Klarna to your checkout, you can check all those boxes. With Klarna, consumers can make purchases online in just one click and they are also given the opportunity to choose between different payment options: Pay in 30 days, Pay in 4 installments or Slice It up over a longer time period. This makes the checkout easy, fast and hassle-free – exactly what online shoppers are asking for.

How to choose the right payment solution for your store

There are several companies out there giving customers the opportunity to pay in installments, which leaves you, as a merchant, with yet another decision to make. When trying to figure out the best payment solution for your online store, there are some important factors to keep an eye on: How long does it take to complete a purchase and how many steps are required to get there? Can you checkout without signing up? And last but not least: How’s the pricing?

Let’s have a look at these factors in a comparison between Klarna and another online payment provider:

To sum it up: Klarna’s option to Pay later in 4 installments is three times faster than its counterpart, it has 87.5 percent fewer steps to complete a purchase (1 step compared to 8), and has a much lower late fee for consumers. Did you also know that American Express has a market share of 22 percent? If this payment option is missing from your checkout, you risk missing out on sales.

As mentioned earlier, only 12 percent of people find online shopping on mobile convenient. But when you ask consumers who have used Klarna at checkout, it’s quite a different picture:

  • 90 percent of shoppers were very satisfied or satisfied when using Klarna.
  • 44 percent of the shoppers only completed their purchase because Klarna’s Pay later in 4 installments was available.
  • 85 percent of shoppers who use Klarna says it’s a better experience than other online checkouts.*****

When consumer shopping behavior is changing this fast, online retailers have to change fast too. After reading this article you know what to change, right? It’s all about the online payment solutions.

With Klarna in your checkout, you easily provide your customers with what they want: Smoooth payments.
Get in touch here and learn more about Klarna’s services!

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Sources:
*Statista – Mobile eCommerce dossier
**Barilliance, 2017
***Statista – Online shopping behavior in the United States
****Credible, 2017
***** Klarna, 2019

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