Will You Not Pay Because a Store Only Uses PayPal?

enveloped on 09/07/2015 - 15:07
Last edited 09/07/2015 - 15:19 by 1 other user

Paypal offers two options to my customers:

1) Paypal user login
2) "Pay with credit or debit card"

Running a store first time in my life, I thought this is good enough to cover all customers.

But for all ozbargain customers who went to checkout, clicked "Pay with Paypal" (the only option), brought to Paypal for checkout, 38% of them didn't pay.

So I have 2 questions:

1) Do you think the credit card payment option is not noticeable?
this is what customers see when they clicked "Pay with Paypal":
https://www.dropbox.com/s/qdsf0l51ypme38a/paypal_express_che…
Paypal made card payment option blend into the background - are they too greedy?

2) If you use bank cards, would you choose not to pay simply because it's Paypal asking for it?
Paypal asks user to click "Yes I agree with terms and conditions" even if users pay with bank card instead of Paypal account.

Thanks a lot!

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Comments

  • DealzEddy123 on 09/07/2015 - 15:28

    how do u know 38% didn't pay? do you get some sort of reporting tool as a seller? (just curious)

    what kind of products do you sell? maybe you customers aren't regular online shoppers and aren't familiar with the option to pay with credit card without having a PayPal account

    (and get scared by the LOGIN TO PAYPAL)

    but personally I know that I can pay without logging into my Paypal account.

    • enveloped on 09/07/2015 - 18:00
      +3

      Well, it took me 3 hours to manually trace these Paypal-redirects in apache access_log to find this 38%, and I am pretty confident that I reviewed the methods right, it's hand-craft statastic data after all. Google Analytics Enhanced Ecommerce can report this number, but its report in my case is wrong (it reports 120% customers paid). I belive it's the shopping cart not correctly reporting to Google Analytics hence I have to do the bitter manual work… Thanks for feedback!

      The store in question is enveloped.com.au - I am not allowed to "advertise" my store here, so I was cautions not to mention it in the first post. This could be taken as a form of advertisement.

  • Choc0 on 09/07/2015 - 15:28
    -6

    paypal are @ssholes.

    Try and get a proper merchant facility.

    • robbyjones on 09/07/2015 - 15:41
      +2

      Super helpful comment for the OP!

  • ozhunter on 09/07/2015 - 15:49
    +16

    I'm much more likely to pay if the store does have paypal.

  • yessum on 09/07/2015 - 15:52
    +9

    I usually get pre-buyers remorse at the checkout when I see the total price, that might be why they don't pay.

    • enveloped on 09/07/2015 - 18:04
      +2

      Thanks - in that case I should emphasize on the site that the total price is just addition of each item, because every item is ship-free. I'll review the site to see if this info is clear enough.

      • yessum on 09/07/2015 - 18:32
        +9

        Can I say it's so nice to see a seller ask for feedback AND accept it gracefully without taking it as personal attacks.

  • Smulder on 09/07/2015 - 16:06
    +15

    This may not be the case with your store, but I often find that some online stores don't give you the total cost until the payment page. Often postage isn't included until the last stage, or any discounts aren't applied until you go to the checkout. When this is the case, I often go through to the last payment screen to get the total cost, then back out and not pay.

    • Lichen6420 on 09/07/2015 - 17:34
      +1

      This is the most common thing i find. Having to go right to the payment page to get a proper total.

      • enveloped on 09/07/2015 - 18:06

        Very important knowledge! I am start to feel it. I noticed that in my store the total price isn't highlighted in some cases - will work on it. (I don't add postage anyway.)

  • rompastompa on 09/07/2015 - 17:42
    +1

    I often get forwarded to the Paypal page, and forget my Paypal password. If I still wanted the product, I'd come back with my password and continue to purchase. I'd be one of the walk aways, but I'd be back!

    For some reason, it's only the Paypal password I forget.

    • pjcook on 10/07/2015 - 07:52
      +2

      Use lastpass and you will never have to remember your passwords and they can be super secure. (You will of course have to remember your lastpass password)

  • wkd on 09/07/2015 - 17:58
    +4

    maybe they log in to see the price of shipping.

    i do this sometimes when the website doesnt show shipping costs

  • [Deactivated] on 09/07/2015 - 21:19

    Do you currently have a payment option that doesn't go through PayPal, and if so, did you measure and compare how many abandoned their shopping cart?

    38% isn't a bad rate, and all online stores experience it.

    Global Average Online Shopping Cart Abandonment Rate, Business Insider, Apr 2014
    https://static-ssl.businessinsider.com/image/535936be69bedd3…
    (71.2% abandon their cart, 28.2% complete the purchase)

    https://www.google.com.au/search?q=online+shopping+abandoned…

    • enveloped on 10/07/2015 - 10:42

      I mentioned in the title that at the moment I only have Paypal. It's a few days of work to add another payment channel, that's why I wanted to get some feedback to see if I should do the labour.

      The 71.2% cart abandon rate (users who didn't checkout, in my case 75%) I understand. But technically the 38% I was asking for user already clicked "checkout with paypal", the rate I did googling around with no finding of common figures.

      Thanks:)

  • Geewhizz on 10/07/2015 - 06:37

    I'll quite often get to the paypal screen of a purchase, only to realise that I've forgotten something, or simply want to add something else to the purchase. I doubt that I'm alone.

    I think you'd lose far more sales if you DIDN'T have paypal.

  • BobD on 10/07/2015 - 07:46

    I often get to the point of paying then back off for a number of reasons. I sometimes return at a later time or day and complete the purchase. As stated by others, it is often an attempt to find the full cost because it is not fully disclosed until the final page to pay is shown.

  • OZB Al on 10/07/2015 - 08:50

    The "free shipping" model can also be problematic. Ebay has taught us to expect discounts for combined shipping, whereas the cheap Chinese sites teach us free means slow and painful shipping. If you see people filling carts then removing all but one item that is why.

    You may want to plaster the site with "All items are in stock and will be shipped to you from Queensland within 24 hours" and also make it very clear who you use for shipping and what expected delivery times are.

    Also make the about us available on the mobile site and really push that everything is in stock and shipped locally. From the mobile site there is nothing to convince me you are not just a front page for a Chinese site that might get the item to me in 3 or 4 months.

    • enveloped on 10/07/2015 - 10:45
      +1

      Thanks so much for your keen eyes!!! How could I have overlooked this part of the mobile site! I'll do all these suggestions very soon!

  • Brendoo on 10/07/2015 - 15:28
    +2

    I much prefer to see PayPal, either via account, or via credit card without account, especially if the website is not that of a well known company. It is much safer that way.

    My personal view is that you may be getting people who dont even know what PayPal is so they exit. Or they dont realise you can pay via credit card without logging in to PayPal and creating a PayPal account.

    • enveloped on 11/07/2015 - 11:07
      +1

      "Or they dont realise you can pay via credit card without logging in to PayPal and creating a PayPal account."

      I'll improve on this point. Thanks!

  • niknah on 10/07/2015 - 19:11

    The screenshot is from your computer's point of view, cause PayPal knows that you've got a login from the cookies in your browser.
    Clear your cookies and go there again and see if you get the credit card form instead of the login form.

    Look at October 28, here…
    https://meta.wikimedia.org/wiki/Fundraising_2010/Banner_test…

    Wikipedia tested donations with just a Credit card(CC) option, and just a PayPal option. PayPal was better.
    And several more ads with both CC and PayPal, which was even better than just PayPal.

    • enveloped on 11/07/2015 - 11:07

      Thanks a lot especially for the wikipedia data source!

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