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Many new business owners underestimate just how much hard work goes into setting up an e-commerce store. There are a lot of important things you need to research before you get going, like business models or market niches, but one vital thing that people often forget about is the payment platform they use.
The payment page is the most important page of all because you need to close the deal before your customer decides to take their business elsewhere. So, you should put a lot of care and attention into the platform you use and the type of payment page you use.
You have two main options here; on-site checkout or hosted checkout. As the name suggests, on-site checkout is a page on your site where you can take payments.
Hosted checkout takes the customer to a third-party site and they deal with the payments. Many people assume that on-site is better because it’s simpler but that isn’t the case. In fact, hosted checkout is the best option for most businesses, here’s why.
It’s Safer For Everybody
Data loss is a big concern whenever you are taking an online payment, so security is always a priority. A large third-party payment provider will have more resources to secure data than a small ecommerce business, so customer data is safer with them.
When you use a hosted checkout page for your online payment processing, the data goes straight from the customer to the payment platform and it never comes to you. Fewer data transfers and the increased security of the payment platform means that the risk of data loss is drastically reduced. It also means that you are not liable for data loss if it does happen because you never had access to the data in the first place.
It Builds Trust
Customers are acutely aware of the risks when shopping online, which is why e-commerce companies must focus on building trust. It’s easy for a big company with a strong brand to build trust. Nobody is worried about getting scammed by Amazon because they know that it’s a real company and not a fake site set up to rip people off.
But people don’t know that when dealing with a small business they have never heard of. However, if they are taken to a third-party payment platform that they do recognize and they have seen on lots of other legitimate websites in the past, that puts their mind at ease.
They Offer More Payment Methods
Consumers expect multiple payment options when shopping online. If you are not flexible with payment options, this can lead to high cart abandonment rates and it makes you look unprofessional. Unfortunately, offering a range of payment options can be quite difficult and expensive for small businesses.
With a hosted checkout page, you don’t need to worry because the payment platform will already be set up for a range of different payment options.
Hosted checkout pages are definitely the best option, especially for small businesses. If you make the switch, you should notice a significant reduction in cart abandonment and a big increase in your conversion rate.
If you’re thinking of setting up a new e-commerce business, being a partner with EKM, I can offer you a 28-day free trial. This will give you plenty of time to set up your store and get used to the platform! Get your 28-day free trial here.