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The Rise of Alternative Payments October 13, 2008

Posted by mniring in E-commerce, Online Merchants, Online Payments.
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In the next five years, online transactions will more than double, reaching $355.2 billion, reports a consumer study in the U.S. from Javelin Research and Strategy.  According to the findings, by 2012, 30% of Americans will use alternative payment solutions for internet transactions instead of relying on their credit cards. In 2007, alternative payments accounted for 14% of transactions. The study also foresees that of all the alternative payment options, email payment accounts, like the accounts offered by Paystone, will see the largest growth, reaching 11% by 2012.

What is causing this striking shift in payment processing? Increased popularity of alternative payment systems can be attributed to the current economic situation. With  the credit market tightening, many people are looking to alternative payment solutions to fund their online shopping. This opens the way for services such as Paystone, that are debit based and funded by “cash” from a North American bank account, to take the place of credit card transactions.

Javelin researchers also found that people are turning to alternative payments for their convenience and enhanced security features. The Paystone system, for example, enables consumers to make online purchases without sharing any sensitive information with merchants, such as bank account numbers or billing information. This type of protection is becoming increasingly important to consumers.

Alternative payment solutions also offer benefits to merchants, and help to remedy shopping cart abandonment. By offering alternative payment options, merchants allow their customers the flexibility to choose the most convenient method of payment for them.  Merchants can create new sales opportunities by catering to their customers without credit cards or who no longer want to use credit cards for their purchases.

This is not deemed a short lived fad. “Although it took nearly a decade for alternative payment methods to secure their position in the online world, it’s apparent that everyday consumers are ready to view them as a trusted and viable way to buy online,” said Bruce Cundiff, a senior analyst with Javelin Strategy & Research. A recent survey conducted by First Annapolis Consulting found that 47 percent of the top 500 online retailers in the U.S. accept at least one alternative payment method.

It is believed that with the transformation of the payments industry, alternative payment methods will become mainstream.  This isn’t simply a trend… the way that people want to shop online and pay for goods is undergoing an evolution. Is your web store keeping up?

For  a copy of the complete Online Payments Forecast: Alternative Payments to Go Mainstream as Consumers Seek Security and Convenience, please visit www.javelinstrategy.com/research

Sources: Ecommerce Journal, Ecommerce Times, Javelin Strategy and Research

7 Ways To Improve International E-Commerce Usability October 8, 2008

Posted by mniring in Online Merchants, Sell to China, Shipping.
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Reposted from: Palmer Web Marketing

The following guest post comes courtesy of Linda Bustos from the Get Elastic Ecommerce Blog.

When you run an ecommerce website, you have the potential to sell products to people around the world — even from your own basement. But many online retailers expect to make international sales without doing all they should to help convert international shoppers. Here are a few ideas to help make the online shopping experience smooth for your international customers.

1. Have an International Shipping page

Sure, you could have it buried in an FAQ section, Help area or some other hard-to-find place — but why not make it easy for users to find International Shipping policies by making it its own link visible from every page on the site?

The footer menu is a common location for shipping information, as is the top right hand corner of your page. Conventions like this have conditioned online shoppers to check these areas for shipping information. If it’s not there, customers might just assume it’s not available. Placing this information in one of the two areas the customer is likely to look is a good idea. Placing it in both areas is even better.

Avoid hiding International Shipping information in the “Help” section. People can’t find it easily by scanning the page they are on, and some associate the word “Help” with technical assistance, not customer service.

2. Include Important Information on Shipping Page

Whenever possible, clearly state your:

– Return policies
– Telephone customer service hours of operation (and time zones)
– Estimated shipping times
– Order tracking availability

A list of all countries you ship to is also recommended. Remind customers that they may have to pay additional duties and taxes depending on where they live.

3. Make Your Shipping Policy Searchable

Make sure your international shipping page can be found using your site’s internal search engine. It’s a good idea to program your search engine to deliver this page for searches for “international,” “intl,” “international orders” and “international customers” too.

4. Show International Shipping Availability on Product Pages

You may carry some products that you can’t ship abroad even if you can ship most products. For example, certain health supplements are legal in some countries and illegal in others. It’s a courtesy to mention this before the customer gets to the checkout.

5. Convert Currencies, Weights and Measures on the Product Page

Most of us can’t convert centimeters to inches in our heads (clothing size charts, for example) or kilograms to pounds, let alone currencies that fluctuate daily. Providing conversion tools can increase conversions!

6. Estimate Shipping Costs on Your Product Pages

E-Commerce usability rockstars offer shipping cost tools right on product pages, which not only helps international customers but also locals. FedEx, UPS and USPS all provide API access for your web developer to make this happen. Offering the tool at the product page level also will reduce your rate of abandoned carts.

7. Send a Post-Sale Email

If you can segment your customer database by location, you can send targeted follow up emails to your international customers. For example, as the Canadian dollar rises more Canadians will shop online at US stores. Motivate your Canadian customers to visit you again by offering free shipping, discounts or other offers. Or, send an email from time to time asking how you can improve the shopping experience for international users. Even if they don’t respond, you send a powerful message that your business cares about foreign shoppers.

Of course, your own usability testing with international customers is the best way to learn about how your own site can be improved. There are even consultancies that offer international usability testing services. But these seven tips will give you a head start.