Posts Tagged ‘Best Practices’

Best Practices to Help Online Retailers Convert Abandoned Shopping Carts into Completed Transactions

Wednesday, February 22nd, 2012

Posted By: Dydacomp Staff

(Parsippany, NJ) – Dydacomp, a leading provider of business technology platforms for small and mid-sized eCommerce and multichannel merchants, today announced best practices that will help merchants successfully target consumers to reverse the growing trend of abandoned online shopping carts.

According to a 2010 Forrester Research report, 88 percent of online consumers surveyed responded that they have abandoned their online shopping carts without completing a transaction. The same report reveals that the rate of abandonment overall was 51 percent1. Some of the top reasons given for not following through with an online purchase are:

• Not wanting to pay for shipping costs
• Cost of purchase was more than expected
• Shopping cart was being used as a research tool for cost comparison
• Checkout process too complicated

“Once consumers have moved to the checkout process during an online shopping experience, we begin seeing a significant drop off between those who walk away from the transaction and those who complete it,” said Fred Lizza, CEO of Dydacomp. “Consumers will continue to use websites to research costs and find the best value; however, merchants can be more diligent in converting what these shoppers put into their carts into completed purchases. With a few site changes, online retailers can begin reversing the spiraling trend of abandoned shopping carts.” The success of an online business is predicated on getting the consumer to the checkout process and finalizing the transaction. Along the way there are a number of steps online retailers can take to shift a healthy percentage of abandoned carts into completed transactions.

The following best practices from Dydacomp can boost that conversion rate:

• Incorporate a third-party service, such as buySAFE, that provides a seal of approval that verifies to the consumer that the merchant is reputable and all information shared over the   site is guaranteed secure. Having this seal has resulted in a six-percent increase in
conversion rates, according to buySafe.

• Make online coupon codes available on third-party websites that award consumers with a discount on their entire purchase.

• Offer free shipping, if possible. Many consumers are coming to eCommerce sites to avoid having to drive to stores and shopping centers to make their purchases, and the free shipping offer will reinforce the benefit of online shopping, as many of the larger etailers have learned.  However, most small businesses can’t afford to offer free shipping. In that case, it’s best to make sure you have linked your order management and fulfillment system directly to your carrier so that you can offer the customer the lowest shipping price options during checkout.

• Implement design changes that make your site less noisy, such as:

o Changing the color and size of the “Proceed to Checkout” button to make it larger and bolder.
o Decreasing the size of the “Continue Shopping” button which distracts consumers from moving to the checkout process.
o Removing the side navigation menu on the website so consumers remain focused on the products they want to buy, rather than giving them other options to move throughout the site.

• Capture shopping abandonment data and run target campaigns using a strategic email tool, such as eWayDirect, to drive consumers back to the site to complete orders. Study shopping abandonment data on an on-going basis and continue testing to increase conversion percentages from basket to paid order.

• Implement a persistent shopping cart to allow returning consumers to see what they left in their cart and have the opportunity to complete the transaction.

• Run online retargeting campaigns through online ad services, such as FetchBack, to make sure offers are top of mind with consumers.

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Combat The Growing Threat of Fraudulent Transactions

Thursday, December 15th, 2011

Posted By: Dydacomp Staff

Dydacomp announced best practices retailers can implement to more closely monitor their inventory and safeguard their revenue from the expanding threat of fraudulent online orders. According to the 2011 CyberSource Online Fraud Report, more than one percent of all online transactions are potentially fraudulent orders which could equate to a significant impact on revenue and inventory.

Like a major data breach, fraudulent orders not only impact the bottom line but can also severely damage a retailer’s brand. Fraudulent orders deplete inventory and force merchants to be hyper vigilant with their ordering processes – resulting in less product available and a hassle for customers. Additionally, most card-issuing banks will side with the consumer, whose card data was used in the transaction, and refund them. But the merchant will not receive compensation for loss of inventory or revenue.

“Out of the $4 billion that our clients process on an annual basis, an estimated $48 million is at risk to fraudulent orders. In addition to this lost revenue and inventory, merchants suffer brand damage, which can be more costly in the long run. This is why we’ve focused on fraud protection in our latest version of Multichannel Order Manager,” said Fred Lizza, CEO of Dydacomp. “As smaller-sized businesses are increasingly becoming the target of fraudsters, there are steps that they can implement to detect fraud and protect their business.”

According to the CyberSource report, large online merchants protect their businesses daily from fraud by using up to eight automated and manual tools to detect and prevent fraud. But small businesses lack the resources in capital and human resources to implement those same mechanisms. The following best practices can help minimize vulnerabilities and reduce fraudulent orders:

  • Activate fraud prevention tools in the payment process and back office systems and create processes to review those orders that contain certain indicators of fraudulent activity.
  • Require card identification (CID) information – the extra three or four digits used for security on all credit cards – and address verification on all orders paid by credit card. Doing so typically ensures the buyer actually has the card in his hand and is shipping to the address associated with the card holder. Where it’s a separate ship to/gift to address, collect bill to address to verify authenticity.
  • Review past orders that have been fraudulent to identify the themes that are specific to your business.

Small businesses should also look closely at orders that contain any of the following to prevent fraud:

  • As electronics are the number-one products associated with fraud, review all electronic category orders.
  • Review orders shipping internationally.
  • Search for orders without a CID number or a CID that doesn’t match the credit card number.
  • Orders that are significantly larger than the average order size.
  • First time buyers.
  • Overnight requests

 

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