Improving Security At Checkout Is Key To Customer Trust and Growing ECommerce Sales
37% of online shoppers trust Amazon, E-Bay and Etsy to protect them from online fraud versus 5% trusting independent online retailers.
False declines to online transactions lead 63% of customers to find a new retailer to shop and buy online.
35% of online customers who experience a false decline abandon their shopping carts and never complete the purchase.
The average number of successful fraud attempts has increased for U.S.-based mid- and large-scale retailers by 43% and 48% respectively since 2019, according to the LexisNexis 2020 True Cost of Fraud℠ Study North America Retail Edition June 2020.
These and many other fascinating insights are from Bolt's 2020 Winter Ecommerce Fraud Report, A Retailer's Guide to Consumer Sentiments, published earlier this week. The report's findings are based on a survey of 848 randomly selected U.S. adults to measure how perceptions of fraud impact online shopping behavior. Respondents were asked questions regarding payment methods, checkout, brand perception, personal data and other related topics. For additional details on the methodology, please see page 10 of the study.
Key insights from the study include the following:
Knowing which payment transactions to accept or decline means the difference between holding onto an online customer or not. It costs many retailers a customers' lifetime value because they're incorrectly rejecting credit cards at the time of purchase. Called a false positive, retailers frequently error on the side of setting their fraudulent transaction screens too rigidly without being able to factor in how trustworthy a customer is or not. 35% of online customers will abandon their current purchase if the payment was declined and more than half will not return.
Amazon, E-Bay and Etsy are the most trusted online retailers because they’re getting every step of the online checkout experience right. This holiday season, more online shoppers are buying from Amazon, E-Bay, Etsy and other globally known online marketplaces than ever before because they are the most trusted to protect against fraud. 37% of online shoppers trust online customer trusted marketplaces, including Amazon, E-Bay and Etsy more than independent online retailers versus 5% trusting independent online retailers. Amazon has earned millions of online shoppers' trust with the reliability and security of its 1-click ordering. 66% of online shoppers blame online retailers if their data is compromised, making the online marketplace’s consistent checkout experiences a formidable competitive advantage.
31% of online shoppers value security over speed and convenience during checkout. It's common knowledge that shoppers expect a quick and seamless checkout, but customers are not willing to compromise safety for speed. When asked to rank what they valued most when making a purchase, over 30% of online shoppers prioritize price (34%) and security (31%) over convenience. Amazon being the price leader in many retail categories and the trust they’ve earned from online shoppers illustrates why independent online retailers need to prioritize making the online checkout experience an excellent one.
Louis Columbus via Forbes