Could you afford to lose 11% of your sales? InternetRetailer, an e-commerce information site, forecasts that online payments will make a jump from 8% to 11% of total retail sales between 2013 and 2018. Ecommerce and “mcommerce” (buying items via mobile phones) are on the rise. Accepting payments or selling products on your website will not only keep your business up to date, but it’s a cost effective practice that will increase cash flow. Ecommerce also has added benefits like opportunities for affiliate marketing, reduced costs for traditional billing, and easier and more accurate bookkeeping.
You Don’t Accept What?
When shopping online, most customers expect to find a web payment option. Having a sleek, sophisticated website is an extension of your company’s brand that gives the customer confidence in your products. Having no option for online payment may ruin that image.
Increase the Impulse Buy
Writing a check and waiting for your business to process a mailed-in payment adds unnecessary difficulty for consumers and may halt the purchase altogether. Online buyers are already 15% less likely to impulse buy online than in-store, so why add more time for them to rethink by having them write a check? Customers may even go to a competitor that offers an easier check out option.
Ability to Use Credit Over Debit
Another huge benefit to accepting online payments: the ability to accept credit cards. Having to mail in orders limits a customers options, usually to a check, and if they don’t have enough in their checking account to pay the total amount, they may rethink the purchase. About 2/3 of businesses and consumers used credit cards for payments in 2012; being able to accept credit cards removes another road block to a customer immediately buying a product.
Credit card companies offer fraud protection for users, who know they can make a claim to the card company if fraud does takes place, adding another level of trust for consumers.
The same user friendly experience that online payments provides to consumers is also translated to the backend for bookkeepers and administrators. By picking an online payment provider and/or shopping cart wisely, businesses can develop a very efficient process for recording and tracking payments. The money will be directly deposited into a checking account, without worrying about annoyances such as trips to the bank.
Expand Your Affiliates
With web payments, your company could also launch an affiliate program. Affiliate programs let other online retailers or sites refer customers in exchange for a small commission. The fee is minimal in comparison to the increased sales, and with a commission system you could add as many affiliates as necessary.
All businesses need to have all possible revenue streams open, including those in the growing ecommerce industry. There should also be as few road blocks to a customer contributing to those revenue streams as possible. With the right online payments program businesses can start the process of accepting web payments and create an excellence experience for their customers and business.
About The Author
Jordan Hoover is a Dallas native returned home. He graduated Summa Cum Laude with a B.A. from Loyola Marymount University. He of course loves writing, reading, playing music, and learning new things everyday. Connect with him over LinkedIn, at www.linkedin.com/in/jordanhoover