7 Key Payment Considerations for Magento Store Owners
Master key payment strategies for a Magento eStore, ensure smooth processing for various payments, & increase your online sales with these 7 tips.
ECommerce is a huge part of the global economy. According to statistical data, the global revenue of eCommerce will reach $4.5 trillion in 2020. The enormous growth of this field of trade makes room for various businesses to offer their services to the market and improve eCommerce services. Generally speaking, rivalries between outstanding businesses generate new value and improved quality of services in every field of work. Nowadays, we have two dominant platforms in this field. On the one side, there’s WooCommerce. On the other, we have Magento. In this article, I’m going discuss seven of the most frequent payment considerations for Magento store owners.
DID YOU KNOW? Magento makes up 29.1 percent of the market share for all eCommerce platforms.
1. Product Organization
While Magento has proven to be a great platform for online traders, it’s only an online tool. This is why its success will depend on its users. Every owner of a Magento store should bear one thing in mind – contemporary Internet users are sophisticated shoppers with highly developed buying taste buds. If your store organization fails to provide them what they need in seconds, they’ll just leave your store. In that case, you’ll experience the three “nos” – no purchases, no payments, no revenues.
Knowing this, always pay attention to how you present your products throughout the website. Furthermore, make sure the product categories are well-organized and easily reachable from every single page. Also, consider including a search bar on each page, so the entire shopping experience is fast and intuitive. The faster your customers buy, the more items you’ll sell. Finally, you may activate the search autocomplete option and accelerate the search process. All those actions will lead to a larger number of payments and, hence, higher revenues.
2. Trustworthy but Slow Bank Payments
When you’ve arranged your products in a user-friendly way, you can start thinking about various payment options. The rule of thumb is that Magento shoppers should be offered several alternatives. Online shoppers often come from different countries and have different payment habits. By using such an open-minded approach, you’ll attract more international shoppers, which is always a great option. So, let’s start with bank transfer payments. National and local buyers will benefit the most from this payment solution. On the other hand, international buyers might find bank transfer commission fees quite expensive, when compared to some more affordable solutions (read about PayPal below). Apart from that, it might take days for banks in some countries to process online payments, which is a nuisance for every eCommerce owner.
If still you want to activate this option, go to the System section on your Magento dashboard and consequently click on Configuration, Sales and Payment Methods. Choose the option Bank Payment. In the Instructions section add your bank account, the bank name and its address, as well as the bank routing number. Finally, name this operation bank transfer payment and save the changes.
3. PayPal for Global Appeal
PayPal is the Magento of payment solutions, meaning that it’s one of the leading gateways for eCommerce transactions. Therefore, teaming up your Magento store with this payment option is a perfect choice for your e-business. On the one side, your customers can pay their purchased goods with their credit cards via PayPal. On the other, they can transfer money from their PayPal account to your account in the shortest time possible.
As for transfer fees, they’re significantly lower than bank commission rates for international payments. For instance, when making payments inside the USA, the fee is 2.9% plus $0.30. Nonetheless, fees on international payments will vary, since different currency rates play an important role here.
The procedure of adding this solution to your Magento payment crew is the same as for bank payments. Just choose PayPal payment instead of BankPayment and save the changes.
To top it all off, you can easily connect a simple invoice creator with this solution, to make invoices for your PayPal customers. It will help you deal with invoicing in a smooth way. And as we all know – fast invoicing means fast paying.
4. Payment Security Features
Magento offers a wide range of security layers for their eCommerce entrepreneurs. One of the most efficient tools for increased security is the 3-D Secure protocol. Those three Ds represent three domains that help authenticate online shoppers, i.e. their bank cards. The first one is the issuer domain – the bank that issued the buyer’s card. The second one is the acquirer domain – the bank that issued the card of the eCommerce owner. Finally, the third one is the interoperability domain – a platform created online, consisting of the multiple protocol interface (MPI) and the access control server (ACS). Digital certificates included in this operation make sure that both the payer and the receiver are authentic users of their cards and accounts.
If you want to activate 3-D Secure, go to the Payments section in System and click on the Test button. When the configuration is tested and validated, go to the Payment Methods Section and activate 3-D Secure. Now it will function in every single payment method you use on your Magento store.
5. Creating Special Deals
One of the crucial eCommerce strategies for higher revenues and easier payments is offering various sorts of special deals to your customers. The great thing about Magento is that you can create and activate these deals using shopping cart price rules. For instance, if you want to grant a 25% discount to every customer who buys a product from a special category, launch the admin panel in Magento and go to Promotions. Here you should choose the Shopping Cart Price Rules section. The process of setting new rules consists of the following steps:
- Rule definition – The name of the rule (e.g. 20% off for a category of products), buyer groups that can use coupons for this category of products and the coupon code.
- Actions – Determining the discount (percentage in this case, but you can also express it as an amount), together with the products it will be applied to.
- Conditions – Setting what groups of shoppers and under what conditions are eligible for this discount.
- Coupon codes – If you want to use coupons for your special discount deals, here’s where you’ll create then, as well as set the preferred code format.
This procedure is pretty straightforward and simple in Magento. However, if you’re having trouble setting your cart rules, you can find detailed instructions here.
6. The Importance of the Persistent Shopping Cart
According to a definition provided by Big Commerce, a persistent shopping cart is “a feature in an online store that retains products in a customer's shopping cart beyond one visit”. If you want to convert your occasional shoppers into repeat customers, adding this option is a must.
For instance, if a customer is interrupted during the shopping process and they can’t finish their purchase right now, it’s vital that their cart awaits them once they come back to your e-store. Magento gives you a chance to create such a cart in a user-friendly way. First, choose the System section and then select Configuration in the Magento admin panel. You should see the Customers section on the left, as well as Persistent Shopping Cart. After choosing General Options, activate the option Enable Persistence.
Now is the time to set the duration of the persistent cookies. You’ll see that the default number is 31,536,000 seconds. This equals to one year. It means that a customer who gets back to an abandoned cart within a year will find the same cart with all the items they had chosen when they left. For more detailed instructions on the cart options, read this guide.
7. Preventing Late Payments
Working with online shoppers is only one side of online trade. ECommerce owners need to collaborate with other fellow businesses, as well. Here they have to be prepared for all kinds of surprises when it comes to working with other ventures. Due to the growing number of online businesses, there’s a higher probability that some of your business partners will be late with their payments. Since every such irresponsible behavior will affect your budget, e-store owners should bring a strict policy when it comes to debt management. Sometimes you can make a few exceptions, for instance when a long-term partner of yours is experiencing temporary financial difficulties. In all other cases react immediately and utilize various debt-collecting techniques to return the assets that belong to your e-store.
What makes a Magento store different from a brick-and-mortar shop is its online context. If you use best payment options and protection features for your e-store, it’s highly likely your business will grow at steady pace. But always keep in mind that it’s a business just like any other. Therefore, it requires committed work and resolute management if you want it to develop in accordance with your plans.