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More Payment Options Increase Online Sales

Mike Sachoff Posted by

Three out of 10 major online retailers offered new payment methods as an additional option to credit cards in December 2007, according to a study from Brulant.

That is an increase of 24 percent of major online retailers who offered alternative payment methods in February 2007.

More than one-fifth of online retailers surveyed offered Bill-Me-later. PayPal was second with 19 percent offering it as a payment option.

One out of 10 online merchants accepted PayPal’s rival Google Checkout for payment.

On average online retailers accepted 2.6 different payment types this year, up from 2.1 in 2005.

Providing more payment options increases online retailers sales, last year sales increased an average of 14 percent for retailers offering three or more payment methods.

“As online shopping continues to grow, it is critical to not only expand your product assortment,” but to also offer “alternative means of payment,” says Marty Keane, senior vice president of e-commerce at Bluefly an online retailer.

“One of the most surprising findings is the increase in retailers offering all three alternative payment methods,” said Brulant principal Adam Cohen.

“Today we find 5% adoption of all three, at a variety of retailers from Toys ‘R Us to PetSmart to Rite Aid,” he added.

More than three-quarters of online retailers surveyed accepted private label gift cards as a payment method.

PayPal had the largest increase in adoption between February and December 2007 at 217 percent. Adoption of Google Checkout doubled during the same period.

About the Author: Mike is a staff writer for WebProNews.

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