November 9, 2017
Shopping cart abandonment is the bane of the eCommerce industry. The global average cart abandonment rate in 2016 was 77.24%, and it’s even higher when users are shopping on their mobile devices. Shoppers leave orders unfulfilled for a variety of reasons, including unexpected shipping costs, concerns about payment security, and poor user experience. This is where OneStepCheckout comes in—a Magento extension that simplifies the entire checkout process to reduce the likelihood of cart abandonment and help Magento customers increase revenue. We sat down with Thien-Lan Weber, CMO of OneStepCheckout, to learn more.
Magento: Tell us more about OneStepCheckout. What do merchants use it for? What is the most exciting problem in commerce you are solving, or want to help solve?
Thien-Lan: It all started back in 2009 when our Norwegian co-founders, Jone and Asbjorn used to work at a Magento Agency and got a call from one of their clients. He said, “Hey guys, the checkout is broken, it’s six pages long. You need to do something about it!”
That’s how the team got the idea to develop a solution to help shoppers avoid going through one page for billing info, one page for shipping info, one for payment method etc…and then review their order. OneStepCheckout pulls everything into one page. It’s a way more user-friendly approach and reduces the unnecessary steps in the checkout process. That’s how we help customers to combat cart abandonment.
The most critical part of any online business is checkout. A merchant can’t make money without it, after all. The beauty of our product is it’s meant for all merchants. Whatever you sell: high value, low value, electronic, fashion, tickets...and whoever you sell it to, B2C, B2B, or cross-border. If you want to increase conversion rates and reduce cart abandonment at checkout, OneStepCheckout is the single most effective technical change that you can make. And it all takes as little as 30 min to set up.
Magento: What are the features of OneStepCheckout that combat cart abandonment?
Thien-Lan: There are many studies around cart abandonment—and it usually comes down to three things: unexpected costs, speed, and form filling complexity.
People usually abandon carts because they are surprised by the shipping costs. With OneStepCheckout, you can see “order total” on the right-hand side as you go and it automatically updates the total cost with payment methods and shipping methods. You can see exactly what you’re getting charged before checking out. Another reason people abandon is speed. Page loading needs to be quick. The way we code checkout is very light and streamlined, no matter how many orders people make at a time. It’s optimized for speed.
And lastly, the process needs to minimize form filling. OneStepCheckout uses the best design practices on the front end and removes all unnecessary “fill-in” fields.
What makes us unique is our business model. We only develop and commercialize one product. So what we do, day in and day out, is support our customers and add innovation to our checkout extension including new features or compatibility fixes. Every day, we get requests from Magento merchants who need compatibility with a certain payment, shipping provider or other third party services, or who need to comply with some local regulations. When there’s a fix to be made, we include it in the next version of our software. The beauty of having so many customers is the richness of their feedback. Often we see patterns with customers or a need in the community and add in new features such our Delivery Date picker that helps set expectations for when a shopper will receive a package.
Last but not least, we have now launched our extension for Magento 2. It was not a walk in the park, but we took the challenge and got there. As Magento itself already improved their native checkout from six to two pages, our core value proposition is more towards the flexibility that we offer merchants who want to shape their checkout to match their business requirements.
Magento: How many people are using OneStepCheckout and can you talk about the success merchants have seen using OneStepCheckout?
Thien-Lan: With over 20,000 Magento merchants having ordered from us so far we estimate our market share at about 10-20% That’s pretty powerful.
For the merchant, it’s all about increasing their conversion rate and therefore their bottom line. When you think about it—a higher conversion rate online means more sales and more revenue generated. With less than 3 out of 100 visitors who place an order, if you drive one more visitors to place an order by reducing friction at checkout that already more than a 30% increase in sales!
Another sign that our extension really makes a difference is the endorsement of over 200+ Magento agencies who recommend OneStepCheckout to all their Magento clients. We power a win-win situation between agencies and their clients as we allow the former to increase their clients' satisfaction by providing a rock-solid product supported by a very strong and responsive technical team.
Magento: What are some examples of merchants who have found success with the extension?
Thien-Lan: One big recognizable brand that recently purchased our extension is Guinness. They capitalize on their brand equity to sell beyond their traditional food and beverage category to also sell fashion and glassware. It’s quite fun as they offer a free gift when you check out and allow you to personalize products like engraved glass or embroidered clothing.
OneStepCheckout has impacted merchants of all sizes and industries. Some of our clients include big multi-million dollar companies such as Lindt Chocolate, Roberto Cavalli, Ferrari, Bauer, and Pulsin. We have several customers who were nominated for awards at UK eCommerce Expo 2016 as well Imagine 2016 Excellence Award. We hope to share more great stories and best practices of customers who have now migrated to Magento 2 at Imagine 2018.
We also have a long tail of smaller merchants due to our pricing options and ease of installation. No need to have deep technical knowledge to set up our checkout in Magento stores.
Magento: Do you recommend pairing OneStepCheckout with other extensions? If so, which ones?
Thien-Lan: PCA Predict Address Verification is quite commonly used among our customers. This helps merchants immediately validate customer addresses with shipping carriers. This is very helpful as addresses can be somewhere where you can travel, but often carriers may not be able to ship there. The benefit for the merchant is a quicker delivery of the parcel and lesser costs associated with lost parcels and returns.
Another service that works well with us is the popular loyalty program Smile.io. They allow merchants to reward their customers using many different levers ad programs with the goal to increase customer lifetime value (CLV).
Magento: What advice do you have for others who want to innovate in commerce?
Thien-Lan: Focus on one thing you do really well and don’t spread yourself thin. For the last seven years, we’ve been only dealing with checkout. In Malcolm Gladwell’s Outliers he says, “To be a master of anything, you need 10,000 hours of doing just that.” Well, we did the math and between our developers only, we already gained over 25,000 hours in just technical support and development for OneStepCheckout. We know checkout for Magento inside out and can confidently say that our experience in that field is unmatched. That’s how we add real value for merchants and agency who can focus on other parts of Magento and leave checkout to us.
Magento: What are some of your favorite extensions aside from your own? Are there any “must-haves” for Magento merchants?
Thien-Lan: Instant search. If you carry more than 100 SKUs you must have a search bar, which allows customers to find what they are looking for. That is a key element in the whole sales funnel. Let’s say you invest in marketing and many potential consumers come to your site. The search bar is the first touch point. Research shows that 80% of people search instead of browsing through an entire online catalogue. Site search is one way to capture visitors and convert them into customers – it’s the top of the sales funnel and is quite complementary to us, who are at the bottom. You can read more about how you can break down your website sales funnel here.