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eCommerce merchants can thrive with optimised seasonal deals and payments
Consumer behaviour is changing. Here’s how eCommerce merchants can optimise seasonal deals to achieve success.
At a time of economic tumult, it’s no surprise that consumer spending is changing. According to our latest Lost in Transaction research, which surveyed 14,500 consumers in North America, Europe, the UK, and Latin America, almost half (47%) of consumers have abandoned their carts due to budget constraints.
And consumers are also taking more care as to when to spend money online, and how they pay for purchases. So what do these changes mean for eCommerce merchants, and how can they exceed customer expectations and drive success?
The power of seasonal deals
Our research found that cost-consciousness is now having a serious impact on consumer buying behaviour. While discretionary spending remains strong, consumers are looking for more value when deciding whether to part with their hard-earned cash.
With this in mind, compelling promotions and seasonal deals can be a huge driver of success for eCommerce merchants. In fact, 67% of survey respondents say they're now more likely to wait for Black Friday or another seasonal sale or discounting event to make an online purchase.
Shopping cart abandonment has always been a factor for eCommerce merchants, but now it’s a crucial battleground, with consumers more willing than ever to opt against spending as costs soar. So, other than seasonal deals, how else can online merchants encourage customers to get through the checkout?
How can merchants deliver streamlined checkouts?
According to our research, a streamlined checkout must deliver choice, convenience, and security, to satisfy consumers.
Consumers now demand more choice than the traditional debit or credit card payment, and eCommerce merchants must adapt to this – enabling them to pay the way they want, whether that’s using digital wallets, mobile wallets, eCash, or other alternative payment methods (APMs).
In fact, 75% of Lost in Transaction survey respondents expect their preferred payment method to be available at the checkout, and significant numbers will abandon their cart if it isn't. And 74% of consumers want multiple payment methods at the checkout so they can choose.
Delivering this choice benefits merchants, too – reducing cart abandonment by offering consumers a fallback option. 28% of our survey respondents told us they try a different payment method if their first choice fails.
It also offers greater accessibility, allowing merchants to tap into wider markets. Take eCash, for example, which makes it possible for consumers to pay online with cash. There are 1.7 billion unbanked or underbanked adults worldwide – eCash can help bring online spending to these consumers.
Security and convenience are key to a streamlined checkout
Neither convenience nor security should be compromised as merchants seek to meet changing consumer expectations.
69% of our survey respondents expect a frictionless checkout, and 46% of those who shop online regularly say convenience is their priority when choosing how to pay.
In addition, 75% of respondents only buy from merchants who are known to have a safe and reliable checkout, and 64% of those who shop online say security is the most important factor when choosing how to pay.
Now, merchants should look to offer more payment choices at the checkout — particularly digital wallets and eCash — that allow consumers to pay without sharing sensitive financial details, while keeping friction to a minimum.
Navigating a changing landscape with optimised payments
It’s a tricky time for eCommerce merchants, with wider economic issues driving change and increasing expectations for consumers. But this also represents an opportunity, to build and deliver a better checkout experience using a variety of payment options, meeting and exceeding consumer demands to gain competitive advantage, and achieve success.
Want to learn more about consumers' evolving attitudes and payment preferences? Download the Lost In Transaction: Consumer Payment Trends 2023 report.