KUALA LUMPUR, Malaysia, 26 October 2022 – A new study from Stripe, a financial infrastructure platform for businesses, reveals that many of Malaysia’s most visited ecommerce websites have error-ridden checkouts, which frustrate customers and cost businesses revenue.
Stripe conducted a detailed review of the 100 top ecommerce websites in Malaysia, uncovering significant errors in the checkout pages of many of the region’s most visited websites.
The report, “The State of Checkouts in 2022,” presents the stark results: The checkouts on the largest ecommerce websites are riddled with mistakes and fall far short of the standards shoppers expect.
With economic growth in Asia-Pacific (APAC) projected to decelerate to 4.2 percent this year, optimizing the checkout experience will allow businesses to make more money for less effort—a simple, efficient way of boosting sales during the economic downturn.
Websites are losing money
Online shoppers expect the checkout process to be fast—and they leave when it’s not. In Malaysia, more than half (53%) said they would abandon a purchase if the checkout process took three minutes. This means businesses are losing about half of all online customers who intend to make a purchase. Additionally, only 10% of customers always complete their online purchases, implying the majority (~90%) do not make a purchase.
However, 99% of ecommerce sites in APAC make five or more basic errors that slow the checkout process and are missed opportunities:
- 58% do not display security logos on their checkout page, jeopardizing customer trust
- 69% do not follow up with customers who had abandoned their cart
- 94% do not recommend higher-end versions of a product or service through upselling
- 44% do not recommend related products or services through cross-selling
- 34% percent of websites allow customers to attempt to pay with an expired card, increasing the likelihood of payment errors
Not optimized for mobile
On average, over 70% of Malaysian customers use their mobile phones to shop for products online more than they use their desktop or laptop. Customers are also shopping through social media, with 92% of survey respondents saying they use platforms such as Facebook, Instagram, and YouTube to make purchases.
This signals an urgent need for businesses to improve their mobile checkout experiences. While 98% of APAC businesses surveyed adapted their checkout flow to a smaller screen, the majority did not support wallets, a mobile-friendly payment method that allows customers to store payment information, such as debit or credit cards, on their phones. Top mobile optimization errors in APAC include:
- 89% do not support Apple Pay or Google Pay
- 66% do not provide the ability to save payment information for future purchases
- 26% failed to surface a numeric keypad to help enter card information
Payment options not localized
Offering the right local payment options can help increase revenue. An overwhelming 99% percent of Malaysian customers said it was important for a website to provide the common payment methods.
With Buy Now Pay Later (BNPL) methods, like Grab’s PayLater, becoming increasingly popular, 74% of Malaysian customers said they would be more likely to complete a purchase if a BNPL option was available. However, only 40% of ecommerce sites in APAC offer them.
Poor practices for subscriptions
Subscription businesses are on the rise, with Stripe’s findings revealing that, on average, consumers in APAC pay for two active subscriptions. To win subscribers, merchants could do better:
- 57% of subscription sites did not offer a free trial, which would allow users to try before they buy
- 79% of APAC customers have had a negative experience with subscriptions—with the top reason being that it takes too many steps to cancel a subscription.
“In light of economic uncertainty, businesses that are ignoring their checkout experiences are subjecting themselves to unnecessary revenue loss,” says Paul Harapin, Head of Asia Pacific & Japan, Stripe.
“There are easy fixes to these issues, especially with using technology like Stripe Checkout, which addresses these common errors seamlessly, ensuring no money is left on the table because of an abandoned cart.”