Checkout

Checkout is the final steps in the purchase path of customers including the cart, shipping and payment information, payment method options and order confirmation.

A well designed and optimized checkout can directly impact growth for ecommerce operations. While it may sound simple there are a lot of details and nuances in optimizing and improving the checkout flow, and it requires continuous analytics, monitoring and experimentation. Companies that just launch the out-of-the-box checkout from their ecomemrce platform and leave it are not typically as successful as others who optimize the flow.

In fact the capability and options from your ecommerce platform on how your checkout can be optimized for your customers and products is a key determining factor which platform will work best for your growth goals.

Checkout optimization

Checkout optimization refers to the process of improving the design and functionality of the checkout process in an ecommerce business. The goal is to increase conversion rates by making it easier and more convenient for customers to complete their purchases.

Checkout optimization is crucial for ecommerce businesses for several reasons:

Reduces cart abandonment: A streamlined checkout process can significantly reduce the number of customers who abandon their carts before completing a purchase.
Increases conversion rates: By making the checkout process smoother and more user-friendly, businesses can convert more visitors into paying customers.
Enhances customer experience: A well-optimized checkout leaves a positive impression on customers, potentially leading to higher satisfaction and loyalty.
Boosts revenue: By reducing friction in the checkout process, businesses can increase their overall sales and revenue.

Key Strategies for Checkout Optimization

Here are some effective strategies for optimizing the checkout process:

Simplify the process: Reduce the number of steps and form fields in the checkout process. Each additional step can decrease conversion rates by up to 35%.
Offer guest checkout: Allow customers to complete their purchase without creating an account.
Provide multiple payment options: Offer a variety of payment methods to cater to different customer preferences.
Optimize for mobile: Ensure the checkout process is mobile-friendly and responsive.
Display security badges: Reinforce trust by showing security certifications and badges.
Offer free shipping: Consider providing free shipping options, as shipping costs are a major factor in cart abandonment.
Use clear delivery promises: Communicate accurate arrival dates to set customer expectations.
Implement one-page checkout: Condense all checkout elements onto a single page to streamline the process.
Remove distractions: Minimize links that could lead customers away from completing their purchase.
Provide live chat support: Offer real-time assistance to address any concerns during checkout.

Checkout metrics

"If you don't measure it you can't improve it." Lord Kelvin

Checkout metrics are key performance indicators that measure the effectiveness and efficiency of an e-commerce website's checkout process. These metrics help businesses understand customer behavior during the final stages of a purchase and identify areas for improvement. Here are some important checkout metrics:

Checkout Completion Rate

Definition: The percentage of customers who complete the checkout process after initiating it.
Calculation: (Number of Completed Purchases / Number of Checkout Initiations) x 100
Importance: Directly reflects the effectiveness of your checkout process.

Cart Abandonment Rate

Definition: The percentage of shoppers who add items to their cart but don't complete the purchase.
Calculation: (1 - (Number of Completed Purchases / Number of Shopping Carts Created)) x 100
Importance: High rates indicate potential issues in the checkout process or unexpected costs.

Average Order Value (AOV)

Definition: The average amount spent per order.
Calculation: Total Revenue / Number of Orders
Importance: Helps in evaluating pricing strategies and upselling efforts.

Checkout Time

Definition: The average time it takes for a customer to complete the checkout process.
Importance: Longer checkout times may lead to higher abandonment rates.

Checkout Engagement Rate

Definition: The percentage of customers who start the checkout process after reaching the cart page.
Calculation: (Number of Sessions that Started Checkout / Number of Visits that Reached Cart Page) x 100
Importance: Indicates how effective your cart page is at initiating the checkout process.

Accelerated Checkout Rate

Definition: The ratio of transactions completed using digital payment options to all completed transactions.
Calculation: (Number of Transactions with Digital Payments / Number of All Transactions) x 100
Importance: Shows the adoption and effectiveness of faster payment options.

Mobile Checkout Conversion Rate

Definition: The percentage of mobile users who complete a purchase.
Importance: Helps identify any mobile-specific issues in the checkout process.

Payment Method Usage

Definition: The distribution of payment methods used by customers.
Importance: Helps in optimizing available payment options.

Industry Average metrics

Checkout Completion Rate: (carts with items added to them)
- Average: 45% for Shopify stores
- Top 20% of stores: 59% or higher
- Top 10% of stores: 66% or higher
Cart Abandonment Rate:
- Average: 69.57% (implied from the 30.43% completion rate)
Average Order Value (AOV):
- Overall ecommerce average: $101
- Shopify average: $85
Overall ecommerce website Conversion Rate:
- Average for Shopify: 1.4%
- Top 20% of stores: 3.2% or higher
- Top 10% of stores: 4.7% or higher
Device-specific metrics:
- Mobile checkout completion rate: 44% average
- Desktop checkout completion rate: 49% average

Examples of good ecommerce experiences:

Here are three examples of top checkout experiences that effectively combine user-friendly design with features that enhance conversion rates. In order to have a more measurable way of comparing and improving ecommerce experiences we can look at a scoring system made of the following factors. Total is 50/50 if a company scores 5/5 on all factors.

Simplify the process
Offer guest checkout
Provide multiple payment options
Optimize for mobile
Display security badges
Offer free shipping
Use clear delivery promises
Implement one-page checkout
Remove distractions
Provide live chat support

1. Samsung

Samsung's checkout page stands out for its simplicity and effectiveness. Key features include:

Progressive Disclosure: Only relevant fields are displayed based on the user's actions, reducing cognitive load. For example, billing address fields appear only after selecting a payment method.
Multiple Payment Options: Customers can choose from various payment methods, including financing options, which caters to diverse preferences.
Trust Elements: Prominently displayed trust seals and a clear cart modification option enhance customer confidence and convenience.
Live Chat Support: A "Chat with an expert" link allows customers to resolve last-minute questions, further reducing friction in the checkout process.

Score:

Simplify the process: 4/5
Offer guest checkout: 3/5 (not explicitly mentioned)
Provide multiple payment options: 5/5
Optimize for mobile: 4/5 (assumed based on Samsung's tech focus)
Display security badges: 5/5
Offer free shipping: 3/5 (not mentioned)
Use clear delivery promises: 3/5 (not specifically mentioned)
Implement one-page checkout: 4/5 (progressive disclosure)
Remove distractions: 4/5
Provide live chat support: 5/5

Total Score: 40/50

Samsung's e-commerce platform appears to be custom-built, with a focus on global expansion and B2B capabilities:

Samsung has launched over 30 B2B online stores in various countries worldwide.
They've implemented a unified digital e-commerce platform to replace legacy systems.
The platform was developed in partnership with IBM Application Management Services.
It's a microservices-based, scalable e-commerce platform built over the last four years.
Samsung also worked with Photon for platform development, innovation, and customer journey improvements.

Platform: Samsung has invested heavily in developing a custom ecommerce platform tailored to their global needs.

2. Casper

Casper’s checkout design is clean and minimalistic, focusing on essential information without distractions. Notable aspects include:

Single-Page Checkout: The entire checkout process is presented on one page, making it quick and easy for users to complete their purchases.
Order Summary: A clear breakdown of costs is provided alongside a free refund guarantee, reassuring customers about their purchase.
Upsell Opportunities: The option to pay extra for bed assembly is subtly integrated as part of the delivery options, enhancing the customer experience without being intrusive.
Chatbot Feature: Customers can engage with representatives directly on the checkout page for any inquiries, fostering a supportive shopping environment.

Score:

Simplify the process: 5/5
Offer guest checkout: 3/5 (not explicitly mentioned)
Provide multiple payment options: 4/5 (assumed)
Optimize for mobile: 4/5 (assumed based on modern design)
Display security badges: 3/5 (not specifically mentioned)
Offer free shipping: 3/5 (not mentioned)
Use clear delivery promises: 4/5 (free refund guarantee)
Implement one-page checkout: 5/5
Remove distractions: 5/5
Provide live chat support: 5/5 (chatbot feature)

Total Score: 41/50

Platform: Casper uses Salesforce Commerce Cloud as its e-commerce platform. This information is mentioned in several of the search results:

According to the article from mytotalretail.com, Casper migrated from a legacy system to Salesforce Commerce Cloud. The CEO, Joe Megibow, specifically mentioned going live on Salesforce Commerce Cloud as part of their goal to improve checkout conversion rates.
The Chain Store Age article also confirms that Casper's existing online checkout experience and user interface is hosted on Salesforce Commerce Cloud.
When implementing the Bolt checkout solution, it's noted that Bolt's partnership with Salesforce Commerce Cloud allowed for a seamless integration for Casper

3. Allbirds

Allbirds utilizes a streamlined checkout process that emphasizes clarity and ease of use:

Minimal Design: The checkout page is stripped down to eliminate distractions, featuring no headers or footers that could divert attention.
Alternative Payment Options: These are prominently displayed at the top, allowing customers to skip directly to checkout without filling out forms unnecessarily.
Coupon Field Management: The coupon field is grayed out until a value is entered, preventing confusion and guiding users smoothly through the process.
Guest Checkout Option: This feature caters to users who prefer not to create an account, thus reducing barriers to purchase.

Score:

Simplify the process: 5/5
Offer guest checkout: 5/5
Provide multiple payment options: 5/5
Optimize for mobile: 4/5 (assumed based on minimal design)
Display security badges: 3/5 (not specifically mentioned)
Offer free shipping: 3/5 (not mentioned)
Use clear delivery promises: 3/5 (not specifically mentioned)
Implement one-page checkout: 5/5 (implied by minimal design)
Remove distractions: 5/5
Provide live chat support: 3/5 (not mentioned)

Total Score: 41/50

Allbirds is built on Shopify, which means it uses Shopify's checkout flow.

Platform

Allbirds uses Shopify as their e-commerce platform. Shopify is a popular choice for many e-commerce businesses due to its robust features and customization options.

Microservices checkout experiences

Microservices are a relatively newer technology used in building ecommerce and checkout experiences. As technology and the platform play a key role in building robust and high performing checkout experiences it's important to be informed about microservices.

Microservices use Modular Architecture independently capable of performing a specific action. For the checkout process this means the flow is divided into separate, specialized services (e.g., cart management, payment processing, inventory checks, order creation).

Each microservice handles a specific function and can be developed, deployed, and scaled independently. In addition services communicate with each other via APIs (aka endpoints), allowing for flexible integration and updates. Utilizing microservices different aspects of the checkout can be processed simultaneously, improving speed and efficiency.

Why Microservice Checkouts Are Better

Improved Scalability: Individual services can be scaled as needed to handle increased load, without affecting the entire system.
Enhanced Flexibility: New features or payment methods can be added more easily by updating or adding specific microservices.
Better Performance: Parallel processing and optimized services lead to faster checkout times. For example, DoorDash saw a 48% decrease in checkout latency after implementing a microservice architecture.
Increased Reliability: Failures in one service don't necessarily impact the entire checkout process, improving overall system stability.
Easier Maintenance: Smaller, focused services are easier to update and maintain than a monolithic system.
Technology Flexibility: Different services can use the most appropriate technology stack for their specific function.
Faster Development: Teams can work on different services simultaneously, speeding up development and deployment cycles.
Improved Customer Experience: Faster, more reliable checkouts with the ability to quickly add new features can lead to higher conversion rates.

Real-World Examples

Amazon: Transitioned from a monolithic architecture to microservices to handle their massive scale and continuous growth.
DoorDash: Rebuilt their checkout flow as a Kotlin microservice, resulting in significant performance improvements and increased reliability.
Express: Implemented a microservices architecture, enabling them to release updates multiple times a week instead of every 2-3 months.

Microservice checkout experiences offer numerous advantages in terms of performance, scalability, and flexibility. However, they also require careful design and management to ensure proper integration and avoid complexity. For many large-scale e-commerce operations, the benefits of microservices often outweigh the challenges, leading to improved checkout experiences and higher conversion rates.

Here are 3 examples of microservices checkout software:

1. DoorDash's Custom Kotlin Microservice

DoorDash rebuilt their checkout flow as a Kotlin microservice to improve performance, reliability, and scalability. Key features include:

Built using Kotlin programming language
Utilizes Apache Cassandra for database storage
Implements Apache Kafka for message queuing
Uses Cadence for workflow management
Communicates via gRPC protocol

Results:

48% decrease in checkout latency (p95 dropped from 13.5 to 7 seconds)
Improved conversion rates
Better scalability to handle increased order volume

2. Bolt Checkout API

Bolt offers an API-based, modular checkout solution that can be integrated with existing e-commerce platforms. Features include:

Passwordless login for customers
One-click checkout functionality
Seamless integration with platforms like Salesforce Commerce Cloud
Ability to turn guest shoppers into logged-in users
Flexible implementation options

Companies like Casper Sleep have implemented Bolt to streamline their checkout process and improve customer experience.

3. Amazon's Microservices Architecture

While not exclusively for checkout, Amazon's transition to a microservices architecture has significantly impacted their checkout process:

Broke down monolithic architecture into smaller, independent services
Allows for dynamic scaling based on traffic and business requirements
Enables continuous integration/delivery (CI/CD) for faster development and deployment
Improved flexibility and agility in adding new features or making changes

Amazon's move to microservices has been crucial in handling their massive scale and continuous growth, including improvements to their checkout process.These examples demonstrate how microservices architectures can enhance checkout experiences by improving performance, scalability, and flexibility. They allow for faster iterations, better fault isolation, and the ability to optimize individual components of the checkout process independently.

Note: AI has been used for research for this content. Curation, recommendations, use case selections, suppliers, links and ideas are all original from Darius Vasefi.