Two things that matter when you’re in the eCommerce business: conversion rates and chargeback rates. Higher conversion rates mean turning more visitors into buyers. Lower chargeback rates mean keeping more of the money you make. And there’s one tool that will help supercharge both of these metrics that is underutilized and misunderstood– Shopify Payments.
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Why should you use Shopify Payments?
Shopify claims about their in-house payment provider but they can vigorously back up their claims with hard numbers. And in eCommerce, numbers make the world go ‘round. Here are a few of the numbers to get you started, and quickly answer the question; why should you use Shopify Payments:
Higher Conversions with Shopify Payments
Buyers checking out on a desktop converted through checkout 1.56 times better than with regular checkout. On mobile, where more shopping gets done each year, it’s 1.91 times better.
So with desktop buyers, you’re looking at about 50% more conversions. With mobile, you’re knocking on the door of 100% conversions! That is a significant statistic and one that all eCommerce sellers should take heed of, whether they’re currently on Shopify or not.
Why Are Conversions So Much Higher With Shopify Payments?
It’s only because of Speed. Since Shopify Payments is an in-house payment provider, the app is fully optimized for the Shopify store. Veteran sellers understand that speed can make a massive difference in brand trust, customer experience, and therefore conversions. If a checkout experience is smooth and user-friendly, a customer is far more likely to spend their hard-earned cash on your products.
Shopify Payments Boasts Fewer Chargebacks
Chargebacks can be a real drag, literally. They drag down your numbers, and often, chargebacks aren’t even the fault of the seller. Shopify Payments is seamlessly integrated with Shopify App and Shopify Shipping. This means that everything is all in one convenient place: checkout, receipts, shipping, and package tracking. Taking the guesswork out of these processes leads to fewer disgruntled customers, hence fewer chargeback claims.
Therefore, higher conversions. fewer chargebacks lead to exponential growth in sales.
Requirements for using Shopify Payments
1. Must fall under the list of countries in which Shopify operates. Here is the list of countries that can use Shopify Payments:
- Hong Kong SAR
- The Netherlands
- New Zealand
- United Kingdom
- United States (does not include US territories, except Puerto Rico)
2. Connecting your Bank account needs to check these criteria:
- The bank account needs to be a full checking account.
- The account must use country & region currency along with region-specific requirements.
- It should accept electronic money transfers.
Setting up Shopify Payments
Follow the steps to Set up Shopify Payments:
- Head over to Shopify Settings>Payments Provider.
- Click on Shopify Payments and choose Activate Shopify Payments.
Note: You’ll be required to enter your Employer Identification Number (EIN) and banking details. Businesses located in certain countries may be required to furnish some additional information for setting up Shopify Payments.
- Once submitted the required information, click Save.
So if you are planning on using Shopify Payments, comply with the Terms and Conditions of using Shopify to sell your products or services. Anyone not in compliance can have their store terminated at any time. To make sure that you comply, have a read of their T&C.
Benefits of using Shopify Payments
Along with higher conversions & fewer chargebacks explained above the benefits of using Shopify Payments also includes Flexible payment methods & Economical Shopify Payments Fees:
Flexible Payment Methods
Activating Shopify Payments doesn’t make it the only payment method your customers can use. With Shopify payments, customers are not restrained to one mode of payment, they can choose as many payments on Shopify. More Shopify payment methods mean that customers will have more options to check out, including Authorize.net, PayPal, and Amazon Pay.
Economical Shopify Payments Fees
The fees associated with Shopify Payments depend on your Shopify Plan. Firstly, there are credit card fees:
Basic Shopify: 2.9% + $0.30 for every online transaction and 2.7%
Shopify: 2.6% + $0.30 for online and 2.5%
Advanced Shopify: 2.4% + $0.30 for online and 2.4%
As you can see, the costs vary depending on your Shopify monthly package. Standard fees for other providers sit at around 2.9% so as you go up the ladder of Shopify plans, the savings get greater.
BONUS – Making Life Easier For Sellers
In conclusion, Shopify Payments is going to make life easier for sellers, and will likely earn them some extra profit. However, conversions and chargebacks aren’t the only things designed to make life easier for sellers. In fact, there are a ton of useful tools that a seller should have in their arsenal.
One such tool is PH MultiCarrier Shipping Label. PH allows sellers to display Real-time shipping rates from multiple carriers like FedEx, UPS, USPS, and DHL to customers directly on the checkout page.
It’s these little things that can have a huge impact on buyer satisfaction and conversion rates. Put yourself in the buyer’s shoes–would you prefer an opaque shipping experience or one that lets you know every price point for your shipping options? The choice is simple.
The PH MultiCarrier Shipping Label app also works both seamlessly with, and as an added feature to Spotify Payments. On the seller side, it also allows for One-Click Shipping Label Printing. An amazing time-saving feature that simply cuts downtime and headaches. With a price point starting at as little as $9 a month, if you’re a seller moving large quantities of goods, or simply want to automate your shipping process and get more conversions, then PH MultiCarrier Shipping Label might be just the thing.