Research from the Baymard Institute finds that 70% of online shoppers who add a product to their shopping cart never complete the purchase.1 Amazon Pay worked with the Baymard Institute to understand the reasons for cart abandonment.
Of all the reasons identified for cart abandonment (shown in the graph below), we found that six of the ten causes could be addressed by Amazon Pay. Those include a website requiring shoppers to create an account, a long or complicated checkout process, lack of trust in providing the site with credit card information, slow deliveries, unsatisfactory returns policy, and lack of enough payment options.
More than one in three shoppers indicated they would abandon checkout if an e-commerce website requires them to create an account (#2 reason for cart abandonment). More than one in four indicated that a long and complicated checkout process forces them to abandon their purchase journey (#3 reason for cart abandonment). With Amazon Pay, consumers do not need to create an account on the seller website, nor do they have to go through a long and complicated checkout process. They can simply use their familiar and trusted Amazon login credentials and the payment information stored in their Amazon account to complete a transaction. Creating an account and/or taking the time to populate form after form of personal and payment information is all history.
Seventeen percent of shoppers abandon their online shopping journey because they do not trust a particular website with their credit card information (the #5 reason for cart abandonment). Amazon Pay fosters trust among such consumers who are wary of sharing their personal and financial information with a less familiar online seller. Amazon is one of the most trustworthy brands in the world.2 That trust halo extends first to the Amazon Pay brand and then to the businesses that offer Amazon Pay as a payment option. Consumers can safely use Amazon Pay with any seller that offers it as a payment option, fully knowing that their information will not be compromised.
Sixteen and eleven percent of shoppers abandon a cart because of a seller’s slow deliveries or unsatisfactory returns policy, respectively. While Amazon Pay cannot entirely solve for this challenge, it does extend Amazon’s A-to-z Guarantee to eligible off-Amazon purchases. This allows consumers to obtain full reimbursement or cancellation of their authorised payment on eligible purchases if they did not receive the product in the promised quality and in the promised time.3 This further increases trust in the seller because consumers believe that Amazon Pay has their back if they face any issues with product deliveries or returns due to dissatisfactory product quality.
Finally, six percent abandon carts due to lack of sufficient payment options. Amazon has hundreds of millions of customers globally. Providing Amazon Pay as a payment option instantly provides that large customer base with an alternative avenue to pay for their purchases off-Amazon.
Amazon Pay is a customer-obsessed company; we are constantly seeking ways to improve consumers’ shopping experience. In that process, we help businesses improve conversion by helping consumers easily and quickly complete their desired purchase.
To sign up and start offering Amazon Pay as a payment option follow this link: https://pay.amazon.co.uk/signup.
1The cart abandonment rate is an average across 41 different abandonment studies - baymard.com/lists/cart-abandonment-rate.
2In two separate annual brand rankings (BrandZ by Kantar MillwardBrown and Best Global Brand 2018 by Interbrand), Amazon follows two other brands as the world’s third most valuable brand.
3Applies only to eligible purchases. Please review this link for more details on the A-to-z Guarantee- https://pay.amazon.com/help/201751470.