In today’s digital realm, establishing a successful online presence is paramount for businesses looking for growth and long-term success. With the ever-increasing popularity of e-commerce, setting up a robust payment processing system has become a crucial aspect of building a thriving online business. And the demand for e-commerce payment options is increasing across all types of businesses. This article delves into why having a solid e-commerce platform with seamless payment processing is vital for your business’s success.
What is e-commerce payment processing?
E-commerce payment processing allows online businesses to receive and handle electronic payments for their products or services. This process involves securely transmitting transaction information between customers, merchants, and payment service providers to authorize, capture, and settle funds.
E-commerce payment processing compared to traditional payment processing
With traditional payment processing, an e-commerce merchant needs to integrate a third-party payment gateway into the checkout process. This means the customer is redirected to an online payment page on the third party’s website, where they enter their payment details to complete their purchase.
With e-commerce payment processing, the payment process is integrated into your business’s site. Customers won’t be redirected to any third-party page, forming a higher trust between the customer and merchants. When customers are redirected to a third-party page, they may question the security of their financial information and are more likely to exit their shopping cart.
Many customers abandon the checkout process due to a lack of trust. According to Baymard Institute, 18% of customers abandon their carts during checkout because they don’t trust a site with their financial information. So optimizing your e-commerce payment method is crucial to your business.
Benefits of Robust Payment Processing in E-commerce
Customers can easily access a wide range of products and services worldwide through online stores. It’s also equally important to consider the benefits of having your own e-commerce site for your business.
There are many benefits to having your own robust payment processing for your e-commerce. You can enjoy lower operating costs, manage your e-commerce business remotely, boost product visibility to an audience globally, and create personalized customer experiences.
Here is a breakdown of the benefits e-commerce payment processing brings to your business.
- E-commerce sites have cost-effective set-up and ongoing operation fees
The initial launch of your e-commerce website and ongoing maintenance can be fairly affordable. You’ll only need to cover expenses for web hosting, domain name, web design, logo design, and minimal sign-up fees on e-commerce platforms.
Additionally, automating the checkout and payment process reduces payroll expenses. Operating without a physical store saves on rent and utilities. You can avoid the large upfront investment of stocking up on products with dropshipping.
- Reach a Global Audience for Your E-Commerce Business
The traditional brick-and-mortar retail store is limited by its physical location and target audience. But, with e-commerce platforms, your business can go global and reach a much larger audience. Operating globally enables you to expand your customer base, work from anywhere, build your brand, and see profits faster than local competitors.
Furthermore, online payment processing enables your company to receive payments around the clock. This means your business can always accept payments, providing a convenient experience for customers and increasing your potential to make sales.
- Your E-commerce Site can be Accessed Around the Clock
As mentioned earlier, e-commerce websites are always accessible to customers at any time, unlike a physical store with set working hours. Your business’s sales system can operate 24/7, allowing you to maximize your sales and profits without the restriction of opening hours. For the customer’s convenience, chatbots can be available 24/7 without having to pay extra employees to run an online payment system.
- E-Commerce Unlocks Efficient Scaling and Inventory Oversight
Creating an e-commerce website can make it easier to grow your business and handle inventory. You can start with only one person and one website, and as sales increase, you can expand your product offerings and business with minimal operating expenses, which can lead to more profits.
E-commerce websites also simplify inventory management by making it possible to make adjustments based on the overall performance of your business. It also allows businesses to maintain precise stock records, ensuring that products are available when needed, and preventing stockouts that can lead to missed sales opportunities. This system ensures timely restocking, improving efficiency and satisfied customers.