May 2, 2018
Turning shoppers into paying customers can be incredibly challenging. Merchants spend a lot of time and money enticing customers to their sites and guiding them to products, and sometimes they still don’t buy.
Cart abandonment rates have remained stubbornly high, up to 79% for desktop shopping and up to 86% for mobile shopping, leaving over $4.6T on the table each year for merchants. Research from Baymard.com shows shoppers drop out because they are surprised by extra costs, are forced to create an account, or they find that the checkout process is just too long and complicated.
Magento is taking aim at shopping cart abandonment with its latest release of Magento Commerce, available today. The new release helps to reduce cart abandonment and increase average order value by integrating new capabilities from Amazon, Klarna, and Vertex that expedite the checkout process while also making it more transparent and flexible.
Enable Faster Checkouts with Amazon Pay
Magento Commerce now includes Amazon Pay, providing 300 million active Amazon customer account holders a fast and easy way to check out with Magento Merchants. Using Amazon Pay allows these shoppers to leverage the payment and address information already stored in their Amazon accounts to skip tedious tasks in checkout. Fully optimized for desktop, tablet, and mobile shopping, customers using Amazon Pay never leave your site, creating a streamlined experience primed for higher conversion rates. You also benefit from Amazon’s advanced fraud protection and payment guarantee policy, recurring payment support for subscription-based services, and multi-currency and cross-board processing for international sales expansion.
Amazon Pay option in the cart
Offer Flexible Payment Terms with Klarna
Another way Magento is reducing barriers to purchase is by including flexible payment options from Klarna. Their Pay Now offering allows customers to check out quickly and securely with direct debit or bank transfer in select European markets. The Pay Later option increases conversion rates by allowing customers to pay up to 30 days after delivery via invoice for a “try-before-you-buy” experience and extremely fast mobile checkout. And, their Slice It solution increases shopper purchasing power by allowing them to pay in installments at a low-interest rate. In fact, merchants see a 62%[ higher average order value for customers using Klarna credit solutions. You can easily configure Klarna to fit your checkout look and feel, and shoppers never leave your site during their quick application process. Klarna also assumes all credit and fraud risk and ensures you are paid for ordered goods.
Klarna payment options in checkout
Ensure Fast, Accurate Tax Calculations with Vertex
Transparency is key to reducing cart abandonment rates. Shoppers want to know exactly what they will pay—including taxes—right from the cart. But, accurately calculating taxes can be challenging. That’s why Magento eCommerce now integrates with Vertex, a leading provider of tax technology solutions. With Vertex, you get automatic, real-time, and accurate sales tax calculations that take into account the latest rates and rules, product taxability status, and customer exceptions. It can easily handle tax calculations when coupons or promotions are present and for credit memos, too. Beyond accurate calculations, Vertex also helps you to simplify operations with tools to generate and file signature-ready PDF returns in a timely manner.
Vertex automatically calculates taxes in the cart based on the customer’s zip code
Offer Competitive Shipping Options
Transparency and choice apply to shipping rates too. With large online retailers setting high expectations around fast, low-cost or no-cost shipping, shoppers want competitively-priced options presented in the cart. That’s where Magento Shipping can help. Its easy access to multiple carriers and rates enables you to provide a range of shipping options that meet your shoppers’ delivery timeframes and budgets. Furthermore, Magento Shipping streamlines fulfillment and improves business efficiency by enabling your team to shop for rates across carriers, set up fulfillment automation rules, and handle returns, all right from the Magento Admin.
Deliver a Better Shopping Experience
A final key ingredient in reducing cart abandonment is website speed. Faster performing sites have been proven to deliver higher conversion rates and more repeat purchases. The latest version of Magento Commerce continues to optimize the shopping experience. It delivers quicker image loading, 36% faster response times for popular search results, and a wide range of quality enhancements. More details available in the release notes.
Learn How to Optimize Your Checkout
If you’re ready to tackle your own cart abandonment challenge, join us for a special webinar on “8 Ways to Optimize your Checkout with Magento Commerce” on May 15, 2018 at 9 a.m. (PDT). You’ll learn how you can use Magento’s suite of products to help significantly reduce cart abandonment and create superior shopping experiences.
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 Amazon data: Q4 2017, Active customer accounts, which are unique e-mail addresses, represent accounts that have placed an order during the preceding twelve months
 Klarna data 2016.