eCommerce Tracker: Malaysia deal to slash abandonment rate by 40 percent
A poor eCommerce checkout experience and process creates disconnects for customers often leading to abandoned shopping carts.
Confirmation of this can be found in a 2016 study by Andrew Meola, which also said that 46.1 percent of cart abandonment occurred at the payment stage, said representatives of a new partnership signed recently in Kuala Lumpur, Malaysia.
An Amazon Inc survey noted that one additional second of load time on their product pages would cost them US$1.6 billion lost in the annual sales. A study by John Komarek, 2016, said that “25 percent online shoppers found it difficult to navigate the site and 21 percent found the checkout process is too long with plenty of obstacles towards a smooth transaction.”
The partners, local checkout solutions firm MOLPay and eCommerce shopping cart company SiteGiant, said “a revolutionary concept of supporting an ideal platform for clients is needed as shoppers worldwide are increasingly on-the-go.”
Essentially, the partnership wants to achieve a 40 percent reduction in the abandonment rate by providing “a seamless payment flow for the merchants through MOLPay’s unified integration and interconnected checkout process that eliminates unnecessary procedures, while allowing the buyers to pay immediately and to increase the chances of online business owners to get paid instantaneously.”
Making it Mobile
The partners said Mobile accessibility was also becoming a more critical element for customer experience, especially with 136 percent mobile penetration in Malaysia and the continuing growth of connected devices this year. Online shopping revenue was expected to hit US$3.1 in 2018.
In addition, they cited an Accenture study that said:
– 58 percent of retailers will have Smartphone apps with purchasing capabilities.
– 40 percent of customers will use Smartphone to browse for what they want to buy.
Both national ICT agency Malaysia Digital Economy Corporation, MDEC, and the ICT industry association, PIKOM, have highlighted eCommerce as an important economic driver in their forecasts to Computerworld Malaysia. PIKOM also recently announced the formation of an eCommerce chapter.
SiteGiant’s chief executive officer Stanley Lim said an ideal platform was “determined by having a seamless checkout process reflected to help reduce the payment abandonment rate and increase the purchase intention of the clients’ customers when they are shopping online.”
This means redirections to new windows must be avoided, agreed MOLPay’s chief executive officer, Eng Sheng Guan, who said that MOLPay placed a high priority on delivering a seamless built-in checkout process for companies.
Eng said: “However, in Malaysia, not many companies have yet realised the importance of user experience, and this is one of the reasons that they are not securing more customers and closing as many deals as they should.”