According to Razorpay, 70 percent of online shoppers drop off due to form fills and account creation, 30 percent return orders to origin, while new shoppers have 20 percent lower conversions than repeat shoppers, pointing to serious gaps in the payments experience.
With a view to solve these woes for D2C businesses, payment gateway Razorpay is making it more convenient for users to pay businesses with a faster checkout option as it pushes to win a bigger slice of the world’s second-largest internet market.
Its newly-released feature, Magic Checkout, is set to help shoppers to check out faster than before while helping retailers achieve a 20 percent rise in revenue and also increase conversions.
This is done by saving shoppers’ information — password, card details, addresses — during their first purchase and pre-filling those when they transact with the same business or any other that also uses Razorpay to process its payments.
To discuss the nuances of D2C payments and how Razorpay’s Magic Checkout is unlocking growth for D2C businesses, Gaurav Dadhich, AD & GM – Checkout, Razorpay together with Devesh Gupta, Product Marketing Manager, Razorpay, delivered a masterclass at the premier edition of YS’s Brands of New India Mega Summit.
The two-day virtual event on January 28-29, 2022 brought together leaders, entrepreneurs, innovators, policy makers, and enablers who are leading the transformation in the D2C landscape of the country.
Here are the key takeaways from the discussion.
How poor payment experiences can kill D2C businesses
“Poor experiences can kill D2C businesses,” said Gaurav, talking about D2C’s biggest payment challenges.
“Losing a customer at the last step is any retailer’s biggest nightmare. 70 percent of customers abandon their carts, because of inconsistent checkout experiences and the need to create new accounts and re-enter the same personal information over and over again. We’ve also noticed a 24 percent drop during account creation, 18 percent due to long and complicated checkout processes, 17 percent from lack of trust with card info, and 12 percent from website errors and crashes. Also, 20 percent of orders are returned to origin. This eats into margins and contributes significantly to inventory overheads,” he added.
Gaurav highlighted D2C brands’ two main challenges – including converting visitors into paying customers, and reducing return to origin orders.
“Magic Checkout helps address two of D2C’s main challenges by improving conversions, reducing RTOs, and unlocking future growth with a faster, easier and safer experience with 20 percent higher order conversion rates,” he said.
Improving conversions, reducing RTOs, and unlocking growth
“E-commerce in India is at an all time high, owing to more than 780 million internet users,” said Devesh talking about the explosive growth of the D2C segment in India.
“If you go through the scientific research that has happened in the last two to five years of e-commerce, to just make the checkout process optimised – largely driven by large e-commerce businesses. Some of us in the Razorpay checkout team come from those large businesses that have been spearheading checkout experiences, and we want to bring all our expertise and knowledge to apply it to ensure that customers get the most optimised checkout experience,” he added.
Talking about how Magic Checkout helps reduce RTOs and shipping costs with 100 percent RTO protection which significantly boosts margins, while also enabling zero cost for COD RTOs, he said, “Giving first-time shoppers a repeat-like experience with Magic Checkout could result in a 20 percent increase in order conversion rates.”
“And of course, when we do all of these, we improve the conversion for brands by 20 percent. That’s a very conservative number. We have, in some cases, even observed a conversion improvement of about 100 percent,” he added.
Watch Brands of New India Mega Summit – on demand
You can watch videos from all the sessions of Brands of New India Mega Summit here. Don’t forget to tag #BrandsOfNewIndia when you share your experience, learnings, and favourite moments from the event on social media.
For information on future events, collaborations, and information regarding the D2C ecosystem, please visit our website.
