How One-Click Checkout Can Improve Ecommerce

Customers make buying decisions based on convenience. In fact, many say it’s a top reason they will try a new brand. Businesses should consider building convenience into every step of the customer journey — including payment. The holy grail of a fast, simple purchase? One-click checkout. Here’s everything ‌ecommerce businesses need to know about how to increase conversions, revenue, and customer satisfaction with one-click checkout.

Simply put, a one-click checkout is a payment feature that lets shoppers purchase a product in "a single click" on an ecommerce website or app. This feature helps drive more sales by shortening and simplifying an ecommerce checkout process.

More than one in five shoppers abandon a sale if a checkout process is too long or complex. But with one-click checkout, the length of a purchase is reduced to — you guessed it — one click. While many businesses have simplified their checkout process by minimizing form fields and the number of checkout pages, nothing quite compares to one-click checkout.

A typical online purchase process involves a customer browsing your ecommerce store, logging in using an email address or phone number, and adding items to a shopping cart. When they're ready to purchase, they're taken to a page where they can review their products and make any final updates. Then, they're asked to enter payment and delivery information, choose a shipping method and timeline, and approve the purchase. This process spans several steps.

One-click checkout makes things simple and fast. When checkout is convenient, your customers are more likely to shop with you again. For example, say you discovered your favorite brand has a sale on its limited-edition bags through Instagram. You'd probably want to purchase before the stock runs out. With a one-click checkout, your purchase is quick — and you’ll rarely ever miss out on a good deal.

The first step of implementing one-click checkout is to get customers’ consent to fetch and store necessary information, like payment details, billing information, shipping address, and other preferences. Once you have customer consent to collect and store data, you’ll need to keep it safe.

Payment information is highly sensitive, so its collection and use should be as secure as possible. Data privacy measures are crucial to ensure trust, avoid breaches, and maintain your brand reputation. The following security precautions should be part of implementing a one-click checkout.

• It's crucial to use a secure payment processor that's Payment Card Industry Data Security Standard (PCI DSS) compliant and can store cardholder data securely.
• Use encrypted payment gateway systems to scramble sensitive data like credit card details and personal information.
• You should enable two-factor authentication to reduce unauthorized access.
• Threats and fraud tactics change over time, so run security audits regularly to identify any potential issues.
• Store only the necessary data to minimize threats.

Implementing one-click checkout can improve your customer experience in many ways. Some of the benefits include:

• Fewer abandoned carts: Many shoppers will exit the purchase experience if there are too many steps between add-to-cart and final purchase.
• Convenient purchasing: Simple, streamlined checkout is critical, especially when you consider that 50% of consumers say it’s a key factor when deciding where they want to shop.
• Better engagement: One-click checkout has been known to get buyers to visit your website 7% more and spend more time on your site during every visit.
• Higher conversion optimization rates: Businesses that take steps to improve their checkout user experience can raise conversion rates by 35%.

Although the benefits are clear, implementing one-click checkout isn’t a cakewalk. Here are a few obstacles you might encounter while implementing a one-click checkout — and how to navigate them.

If you're currently using multiple applications and payment gateways, technology integration can be daunting. For example, you may have different payment providers across each of your selling channels, from social platforms to your website to retail apps. More than a third (38%) of commerce leaders say that disconnected payments across systems hold them back from implementing new payment types. So, if you’re facing this issue, it's a good time to evaluate whether your current payment systems are really working for you. Your commerce platform should be compatible with different payment methods as they evolve, especially since customer expectations for payments are constantly changing.

Any new payment solution must be secure and comply with regulations such as PCI DSS. It's important to strike a balance between convenience and security to prevent one-click checkouts from becoming a gateway for fraudulent transactions. Solutions that use tokenization and advanced verification techniques can help address these concerns.

The costs of implementing a one-click checkout can add up. It will require modern security systems, robust payment processors, insurance coverage for digital transactions and stored payment data, and costs for development. However, it’s important to remember that one-click checkout generates a solid return on investment (ROI). One-click checkout encourages your visitors to become repeat customers and ultimately boosts customer loyalty. Did you know that 67% of repeat customers spend more than new customers? The key is to have a customer relationship management (CRM) that makes this implementation more effective and seamless.

With the right ecommerce platform, implementing one-click checkout shouldn't take long. But that's not always the case. It can be challenging to justify overhauling your payment systems if the process is long and arduous. In fact, nearly half (44%) of commerce leaders say that time of implementation hinders them from implementing new payment methods. The more time you need to spend on implementation, the more time it’ll take for you to realize an ROI.

If you’re considering one-click checkout, here are some questions that can help provide guidance:

• Is cart abandonment a challenge? Consider your current abandonment rates and, if you have access to technology such as heatmapping, identify the factors driving it. The convenience of one-click checkout could be a way to help improve rates.
• Who are your customers? Understanding your ideal customer profile can help you determine how likely your high-value shoppers will be to embrace ‌‌technology. Younger buyers, tech-savvy audiences, and mobile shoppers usually adopt one-click checkout, potentially increasing ROI.
• What percentage of your audience are repeat buyers? One-click checkout doesn't ease the checkout process for customers until their second purchase. If you serve a significant number of repeat buyers, this feature could help streamline their experience and encourage greater loyalty.
• What kind of products do you sell? Certain products are highly compatible with one-click checkout. Simple products that people can quickly decide on — like inexpensive items, impulse purchases, or products they've already researched — work best with a fast checkout.

Choosing the right vendor is critical when implementing a one-click checkout solution. Factors to consider include:

• Compatibility: Do you need a separate solution that's compatible with your current ecommerce platform, or can you select a platform that offers one-click as a built-in option? Ensure that your new checkout system works with your existing payment setup.
• Security: Data security and transaction verification are vital for customer trust and ongoing compliance. Understand how a payment processor keeps information secure and verifies transactions for repeat customers. Also consider the steps the vendor takes to address security issues.
• Customer support: What level of support is available to your team and customers? Determine your options for troubleshooting issues, supporting implementation, or answering user questions that may be beyond your team's expertise.
• Seamless customer experience: What's the reliability and error rate of the system you're considering? Buggy checkout systems and those that don't work well with specific devices can drive customers away. Before choosing a solution, check its reviews, customer base, and feedback to understand how it’ll impact end-users in the sales process.

Improve your outlook for one-click checkout success by:

• Rigorously test the solution before deployment: Test your checkout flow under various scenarios and on different devices. Ensure compatibility across various devices, regions and payment types before it goes live.
• Communicate with customers: Inform your customers about the one-click checkout rollout through newsletters, social media updates, and checkout page notifications. Consider using a simple explainer video to show how it works. Be sure to address important questions such as how it protects customers' payment information and verifies their identity.
• Adopt IT best practices: Stay updated on general security updates, patches from your one-click checkout provider, and updates from payment gateways to help prevent security vulnerabilities. Use security support options available at the IT maintenance level to add an extra layer of protection.
• Monitor analytics: Analyze customer behavior and adoption data to better understand how to optimize the checkout process. Identify opportunities where streamlined usability or better customer communication might mitigate concerns and encourage adoption.
• Support customers: Make it easy for customers to ask questions or find support. An easily accessible contact center, AI assistants or agents can help streamline your customer support and offer 24/7 support.

‌Your ecommerce checkout experience is a reflection of your business, so it’s best to make it as simple and convenient as possible. With one-click checkout, you can convert first-time buyers into repeat customers and positively impact your bottom line. Learn how Commerce Cloud makes it easy to implement, so you can make it easy for customers to purchase.