Consumer and Merchant E-Commerce Pain Points

Session Leads: Ian and Lawrence

Our Questions

85% of retailers cite poor payment experiences as the key reason for lost sales
75% of online shoppers want faster checkouts
56% want more payment options
34% will leave the checkout process if the site wants them to create an account
26% of shoppers abandon their cart if the checkout process is too long/complicated
25% of consumers said excessive adverts during online checkout would make them less likely to buy
21% abandon their cart if they can’t see/calculate the total cost of the order up front
6% abandon their cart because there weren’t enough payment options
4% of online consumers abandon their cart because their card was declined

Hypothesis: Bold items could be met through successful deployment of our technologies.

49% of consumers are concerned about privacy online with lack of trust the main issue keeping them from shopping online
37% of shoppers are unhappy for a retailer to identify their location and send offers via mobile
30% of people are uncomfortable for a retailer to monitor their shopping patterns/purchases
24% prefer to purchase an item in store if they think it is too valuable to buy online
22% of people distrust the internet so much that they never shop online
20% of shoppers only purchase from retailers in their country
17% abandon their cart if they don’t trust the site with their credit card information
15% of online consumers are concerned about the authenticity of an item
13% Do not trust online security

Question: Are there opportunities to address any through our technologies?

91% of consumers leave when shipping isn’t free or fast enough. Nearly half (43%) go to marketplaces
73% of consumers would switch to an alternative retailer as a result of poor home delivery or Click & Collect experience
66% of shoppers have decided not to buy an item because of shipping costs
60% of UK adults online thought that the retailer should be responsible for resolving delivery problems (not the delivery company)
42% of people experienced problems with late deliveries
36% of consumers experienced missed deliveries
21% of people have received the wrong item
13% encountered goods arriving damaged or faulty
11% of people experienced goods not arriving at all

Question: Are there opportunities to address any through our technologies?

We asked some WG and non-WG companies to send us information
We heard back from 5 companies
Next slides organize what we heard
- Omitted: broad concerns such as legal, access to capital, access to skilled labor
We want to hear from more merchants!
We could also gather more data from reports (as done for consumer pain points)

Too many user interactions required; would like 1-click payments.
(2x) Redirect to a hosted payment page is a poor user experience.
Entering data (instead of, for example, pre-filling)
Complexity of trying to match styles between the payment page (of the PSP) and the merchant site.

Hypothesis: Bold items could be met through successful deployment of our technologies.

Lack of secure online payment instruments that work for customers.
Authentication friction. Suggestion is to reduce friction through risk analysis and disable user friction when possible.
Fraud is evolving faster than smaller and medium retailers can respond. Fraud & Chargebacks (losses) & merchant liability constitute significant cost and hassle for small business.

Integration for a large number of payment methods is complex
Costs associated with payment methods
Cost of securing payment and personal data to avoid compromising and risk on merchant reputation.
Online merchants today bear the liability for fraud and on top of that have to deal with everything from card testing to PCI, which in aggregate add a lot to the cost of doing business.
Although "off-the-shelf" solutions exist to create Web sites, payment integration remains complex. Adding the payment feature to an e-commerce website requires a lot of effort in several ways:
- Choice of solution provider and features (simple payment, recurring, one-click, scheduled, composite, marketplace...)
- Compatibility with future payment offerings
- Technical integration: CGI, HTTP redirect, iFrame, Web services
Availability, response times

(2x) PCI burden with hosted payment page.
Complexity of regulation and number of standards (brand selection, PSD2/3DS2/SCA, PCI-DSS, SAQ A...)
Cross-border payments: What are the specificities of the country? which local payment mean should I support? Is there a payment warranty?

Further streamline checkout. See candidate payment flow features
Reduce advertising (cf. Web Monetization)
Reduce authentication friction
Reduce use of PAN (concern about sharing card information) and reduce PCI burden
Improve shipping. See candidate features related to shipping
Harmonize style between merchant site and payment service. See candidate UX and styling features