Future of Payment Methods: Online Shops Development

In this post you can find a short summarize of catchy studies about the future development of online shops - with many links to the original studies.

What’s the current status of online shop development? Reports like the ones from Monetate or the Global Payments Report give an insight into the way online shops could and should look like in the future in order to remain successful. I just summarized some of the results in this little Advent Calendar door.

Only 3 % of all Visitors buy in Online Shops

Marketing and online shops are inseparable partners. From AdWords to SEO to classic advertisement – you need to use a wide variety of channels for some time until customers buy.  As automobile merchant or as short-term Hamburg-Mannheimer-person (that’s an insurance merchant) everyone told a ratio of 2:10 ist great and possible. However, convincing two out of ten customers in a car showroom is much easier than getting an online visitor. On a global level, two out of 100 is more realistic.

Well, you should look after these numbers in your shop. But they should not only be analyzed with regards to the device. That’s because the way a visitor goes is much more important. The “Visit to cart” way describes visitors who really put something into the shopping cart after visiting. In the following, you should take a look at the “Cart to order” way. This one analyzes whether a visitor really becomes a customer and a successful purchase.

In both ways you need to inspire the visitor. Give him or her some relevant content and build up some trust. In case you have the feeling or the real numbers that only a few visitors go to the checkout, your customers have some of these problems with your shop:

It might be barriers like …

  • visitors need to create an account
  • page loads too slowly
  • design looks old and boring
  • Forms, Forms, Forms

Stop doing these things! Furthermore: Start reading the Studies of Baymard Institute on how you can increase your conversion about 35% with individual design. 

Still More Credit Transfers Than PayPal

We should never forget that the GraySurfers don’t use PayPal etc. and still want to rely on the old and well-known credit transfer. It doesn’t matter whether it’s the classical way or via services like SOFORT √úberweisung.

Note: In Germany, each shop needs to offer at least one payment method without fees. Those being transactioned via third-parties (the above-mentioned in particular) don’t count anymore – says the Federal Supreme Court (Germany). At least one payment method must be for free where no additional third-party contract is necessary.

Still, a proud number of 29% use the classical way, closely followed by 25% going via eWallets. Far away from these numbers, the payment method credit card follows with 14%, and incredible 9% use the payment by delivery. SOFORT √úberweisung, payment via credit transfer, PayPal and other Package services with payment by delivery should never be missed in a shop. Click the links to go to the fitting plugins for a WooCommerce shop.

Future: EDI Sales and Develop Other Countries

After the start of a successful shop, you contribute to 3% (according to Eurostat) of the total turnover in the EU (or rather 2% in B2C). The next useful step is to make your shop ready for EDI sales. A huge market (16% of the whole EU turnover) waits for you to become rich. This market is not only three times as huge as the online shops we know. Moreover, you only need a third of the staff. In my opinion, the fully automated storage and ordering system via EDI (“electronic data interchange”) is the future as Amazon shows us in an amazing way.

My advice for you: You should only create online shops for Malaysia,  India, China and more. If you believe in Statista Prognoses,  these are the next big growing online shop markets during the next three years. Malaysia’s shall grow round about 24%, China’s market round about 17%, Turkey’s market round about 14%. At the same time, there won’t be a much-growing market in Germany. In my opinion, you should better provide goods to a growing market than try to fight for a place in a saturated market. In case you don’t speak the languages, try out to create a shop for South Africa (expected growing marked round about 15%) where they speak English and German.

Three Contact Points and More about Online Shops

I like statistics, especially in case they are new and from a trustworthy source. That’s why you got some information about the future development of online shops and the fitting source in this 16th door. I really want to recommend Eurostats and DEStatis to all soon-to-be and aspiring shop owners. Current statistics and prognosis are usually much more worthy than countersinking money in SEO for a market that is saturated.