Seven Strategies to Help Online Retailers Boost Revenue and Retention

Seven strategies to help online retailers boost revenue and retention

Making the payment process simple for consumers shopping online has never been more complex.

Things have come a long way from when retailers just needed to accept credit cards. New payment methods are expected to make up around 28% of total volumes by 2026.1

Keeping up with growing consumer expectations can be a challenge, but payments can also play an important role in solving some of the most pressing strategic challenges facing online retailers. Growing into new markets, service innovation, and staying ahead of customer expectations are all key areas where payments are vital to success.

The demand for alternative payment methods highlights the importance of offering local payment capabilities as

part of an international growth strategy for online retailers. But it’s not only accepting preferred payment types that influence the customer experience. Issuing refunds is an opportunity to provide a great customer experience when your customers most value it. Instant refunds show customers they can trust your brand and buy with confidence.

Subscription services are gaining traction in the online retail sector as an innovative new commercial model. The global e-commerce subscription market is expected to grow rapidly from US$96.61 billion in 2022 to US$2,419.69 billion by 20282. New payment technology can anticipate and mitigate declined transactions as well as ensuring subscriptions don’t lapse, even when card details change.

Strategic thinking has moved past simply processing payments to orchestrating them. This new technology introduces intelligence into the process that helps drive down costs and pro-actively helps increase sales conversions.

To further accelerate your business and stand out in the market, launching your own payment products, like branded physical or virtual cards, can boost brand recognition and loyalty.

Nuvei can be your innovationled partner that offers the latest technologies to support your eCommerce model as it expands.

Here are seven strategies that help you drive revenue by keeping ahead of consumer demand, enabling service innovation, driving down costs and differentiating your brand.

1.Integrate payment methods

your shoppers prefer

A key shift in consumer payments is the emergence of local payment types, also known as Alternative Payment Methods (APMs). These could include bank transfers, eWallets, BNPL & Instalments and many more.

Accepting a portfolio of popular APMs is essential to support retailers as they seek to grow and enter new markets. Today, 9% of shoppers will already abandon their cart if online stores do not offer their preferred payment methods.3

The pace of APM adoption is set to increase. The value of digital wallet transactions alone is expected to grow from $7.5 trillion to over $12 trillion by 2026.4

To be ready for the challenge, retailers should choose a payment service provider that offers access to a broad range of APMs that are popular in their target market through a single integration.

$7.5 trillion

Global digital wallet transaction volumes 2022

$12 trillion

2.Introduce a subscription-based service

Innovative retailers are adapting their offering to address this rapidly growing opportunity to create recurring revenues.

Payments play a startlingly important role in the retention of subscribers as 48% have terminated their subscriptions because of a declined payment. 5

With a simple API integration or hosted payment page, retailers can easily add a subscriptionbased service with automatic recurring billing to their established retail offering.

Set-up multiple, concurrent subscriptions with individual start/end dates, intervals and more.

Automatic updates of payment details when customers are issued a new card or other account details change so you don’t lose subscribers and revenue.

Decline retry technology automatically resubmits declined transactions to save your sales.

have terminated their subscriptions because of a declined payment

3.Enable one-click payments

Single click payments remove an important point of friction in the buyer journey. Instead of presenting prospective buyers with the task of inputting their card and billing details, oneclick payments use information previously submitted and stored securely on a token.

According to MarketingCharts. com, 97% of consumers have chosen not to make a purchase because it wasn’t convenient, and 83% say that convenience while shopping is more important now than it was five years ago. One-click buying offers the ultimate in convenience, which can draw consumers to the platform 6 , initiate fast repeat checkouts and enhance the overall payment experience.

97%

83%

have chosen not to make a purchase because it wasn’t convenient

say that convenience while shopping is more important now than it was five years ago

4.Consider embedded payments

Today, it’s not only banks that can provide financial services. Online retailers can extend financial services such as issuing cards for greater customer loyalty, convenience and the elimination of barriers to purchasing.

Extend your brand into payments by issuing your own credit or debit cards

Grow customer loyalty and enable reward programs

Access valuable customer data for more effective marketing

5.Don’t just process payments, orchestrate them

Processing a payment involves many different steps and decisions. By applying some intelligence to every payment processed, your chances of a successful sale are elevated.

Payments partners with multiple local banking relationships can make a rules-based evaluation of each transaction considering several key factors before routing the payment to the most appropriate acquirer. This smart routing will maximise the likelihood the payment will be accepted. By orchestrating payments in this way, you will drive more revenue, minimize transaction decline rates, reduce processing costs and scale your business with ease.

6.Offer partial approvals

Insufficient funds are the single biggest reason for declined transactions, accounting for 27% of all declined transactions.

If the customer doesn’t have sufficient funds in their bank account to cover the transaction amount, the payment will be declined.

Partial approvals identify these transactions before the issuer declines the payment and offers your customer the option to deposit a lower value that will be approved, or to cancel the transaction altogether.

27%

7.Take a strategic approach to

Strong Customer Authentication

Because 3DS2 includes multifactor authentication, it can add friction into the approval process. To mitigate the impact on conversion rates, you can employ exemption rules that bypass the need for multi-factor authentication where the risk of fraud is low.

This approach meets Strong Customer Authentication requirements under PSD2 regulations. It is also relevant to regions not covered by PSD2 as card schemes are looking to implement 3DS2 protocols in those territories.

Our Purpose

The trusted platform for the future of Online Retail.

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Higher acceptance rates

Reduced card abandonment

Deliver cutting-edge payment experiences

Move forward with the payment platform that’s ahead of its time.

600+ alternative payment methods

150 worldwide currencies

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200 global markets

The payment platform that offers frictionless, familiar and secure payments, just as your customers expect

Reconciliation

The most agile payments platform in the Retail sector

Supported by a dedicated team of experts to customise your payments

Chargeback Manager

A disputes team that is involved in the process of handling chargeback requests in accordance with the service-level agreement time frame.

APM Experts

A team of Alternative Payment Method experts to offer insights within industryrelated payment method trends, per country.

Industry Experts

Industry-related experts to inform you with the latest trends, payment-specific regulations and networking events.

Technical Experts

Technical resources to implement new features and functionalities in existing and new growth markets.

Legal and Scheme Support

Ensuring your business is constantly up to date with all relevant scheme rules and regulation mandates.

Fraud and Risk Specialists

A dedicated fraud and risk team who provide advice and experienced-based suggestions on fraud prevention tactics and best practices at merchant, global and specific industry levels.

Dedicated Relationship Manager

Single point of contact, managing resources to exceed your business needs.

Executive Sponsorship

Senior Management support to ensure top priority and service for you and your customers.