Tagged with 'online retailer'

Your eCommerce store customers want this!

ecommerce payment options graphic

There are many keys to being a successful online merchant.  But in the end it’s really all about the customer experience, whether your customer is a business or an individual consumer.  As a person who has overseen the creation and operation of a number of B2B and B2C eCommerce websites over the years using Magento and other technologies, I can speak first-hand about the importance of customer experience and two essential factors that are sometimes taken for granted or simply overlooked – convenience and choice. Online shoppers value these two things greatly and typically make the decision about where to shop and buy weighing these heavily in their decision criteria. 

Fortunately Magento Commerce, in conjunction with its many technical partners, provides an environment that gives you, the online merchant, an optimal mix of convenience and choice. Nowhere is this more apparent than in the area of payment gateways. In case you are unfamiliar with the term “payment gateway”, it is a third-party service provider that automates payment transactions between an online store and its customers. 

In today’s world of online commerce, customers expect both convenience and choice when it comes to paying for the items they buy online.  Choosing the right payment solutions provider is therefore something you should take seriously.  When selecting a payment solutions provider you don’t have to pick just one, although many of the major players in this space offer a wide array of payment choices so it certainly is possible to select just one. The goal is to provide your customers with both convenience and choice, so providing several payment solutions options would typically be preferable. 

The universe of choice in this area continues to expand. Today I’ll focus on a few options; some of which you mostly likely have heard of, others perhaps not. This is NOT an exhaustive list of available choices.  Remember that the payment solutions options you choose should align with your short and long term business goals and should also meet your needs in terms of price, security and functionality.

So let’s explore in brief a few of the major players - Amazon Pay, Braintree, APS, Authorize.net, and Cybersource.

Amazon Pay logo

One of the top payment solutions available for eCommerce businesses today is Amazon Pay.  Amazon Pay is a solution that hundreds of millions of Amazon customers know and trust.  Offering Amazon Pay as one of your payment options can provide a number of advantages to both you and your customers including optimizing and simplifying the checkout process in just a few clicks for those customers with Amazon accounts using their Amazon account information; enhancing the customer experience and improving customer satisfaction with Alexa by allowing delivery notifications via Alexa-enabled devices to reduce customer concerns about their order status and advanced fraud prevention which is a critical element in the online commerce world.

Braintree logo

Braintree offers payment solutions that cover a number of popular and emerging payment methods. The company points out that they are the only payments platform that delivers PayPal, Venmo (in the U.S.), credit and debit cards, and popular digital wallets like Apple Pay and Google Pay in a single, seamless integration, so an online merchant gets a wide array of choices right from the start.    

With Braintree solutions you can drive greater conversions, increase operating efficiency, expand your business reach and help to mitigate risk related to fraudulent transactions while keeping payment data secure and maintaining PCI (payment card industry) compliance.

APS PAyments logo

APS has been in business for over 11 years providing reliable, omni-channel, B2C and B2B integrated payment solutions for businesses.  APS Payments seamlessly integrates with multiple leading ERP, eCommerce, CRM, POS, and Mobile applications.  APS Payments is a payment gateway and processor that is trusted by thousands of merchants daily to process payments. 

The company works diligently to offer the lowest credit card processing rates, provide strong processes to help reduce risk and to supply the best payment solutions for its customers.

Authorize.Net logo

Authorize.net has been working with merchants and small businesses since 1996. As a leading payment gateway, Authorize.Net is trusted by more than 430,000 merchants, handling more than 1 billion transactions and $149 billion in payments every year.

Authorize.net makes it easy for customers to pay by accepting the payment types they prefer to use including major credit cards, signature debit cards, e-checks and digital payment solutions.  Authorize.net supported payment types include Visa, MasterCard, Discover, American Express, JCB, PayPal, Visa SRC (Secure Remote Commerce), Apple Pay, Chase Pay and E-check. 

As with other payment solutions, Authorize.net offers retailers a wide array of convenient features designed to make it easier for you to focus on your business and customers.  Take the worry out of payments and payment processing with solutions from Authorize.net. 

cybersource logo

Started in 1994, Cybersource pioneered online payment and fraud management services for medium and large-sized merchants. Today, Cybersource’s modular platform lets you select the payment management solutions you need, when it’s right for your business - to help maximize growth. Aside from payment acceptance solutions, Cybersource also provides robust fraud & risk management solutions and top-notch customer service. Plus merchants can access additional services, including global tax calculation, recurring billing and more.

You can find a list of more of our technology partners by visiting the PARTNERS page of the Kadro website.  

IN CONCLUSION

So there you have it, a glimpse into the world of payment solutions for online retailers.  As you can see, there are many, many payment options and solutions providers for an online retailer to consider.  And most of the providers make the same general claims about their focus on data security, PCI compliance, fraud protection, range of payment options and flexible pricing, so it will take an investment of your time to learn about the option(s) that may be best for you and your online store. It’s time worth spending as the payoff in terms of more satisfied shoppers and customers can be significant.

Kadro is here to help. Should you want to learn which solution(s) is best for you, contact your Kadro Account Manager. Don't have one yet? Give us a call at (877) 435-3453.

Marketplace vs Dropship - Which one’s right for your eCommerce website?

Dropshipping versus online marketplace image

The realm of B2B eCommerce continues to evolve driven by the ongoing impact of COVID-19 which has accelerated growth in the sphere and spawned new business opportunities that reach beyond the predominant channels and methodologies in place today.

An eCommerce area where an evolution can clearly be seen taking place is in online marketplaces. We are all very familiar with the major 3rd party players in this space like Amazon, eBay, Walmart, Rakuten and Alibaba. These giants have transformed the retail landscape capturing greater and greater percentages of consumer shopping and purchase behavior. In line with that, one must not ignore the foray that Amazon for one has made on the B2B side of things with Amazon Business. In spite of the dominance exerted by these large organizations, we have seen movement over the past three years in a different direction. That direction points to more businesses of all sizes considering the formation of their own marketplaces with the subsequent desertion from major 3rd party marketplaces. https://bloom.bg/3eYlLL8

Perhaps these businesses have identified an opportunity to serve a regional or local community focusing on local sellers/retailers. Such new marketplaces are setup to provide a diversity of product offerings through their local sellers and they tend to attract local buyers to their online environment. It’s a find it and buy it local approach. This new breed of marketplace may also be founded on a desire to focus on a specific niche of products, like for example hand-crafted goods. In any case, the goal is to provide quality local sellers and goods in support of local communities.

A germane question that logically comes up is should an eCommerce business grow by building its own multi-seller marketplace or instead go the drop-shipping route? There can be pros and cons to each direction that one should consider en route to answering this question.

This helpful diagram illustrates who assumes responsibility for key elements of the online selling process.

Dropship versus marketplace matrix

One significant difference in being a seller on a marketplace versus setting your online business up around the drop-ship solution is how inventory is controlled. As a marketplace seller, the matter of inventory is left in your hands. If you choose to expand your business via drop shipping, your eCommerce store’s inventory rests in the hands of the drop-shipper(s) you use. You take on all other aspects of the business operation as shown in the left hand column under DROP-SHIPPER SOLUTIONS.

How can starting a marketplace benefit B2B businesses?

B2B businesses can benefit in a number of ways.

  1. If you already have customers coming and buying from you when you establish a marketplace, you can help increase their spend, because they can find more products that they want to buy. This is of course similar to what one finds in the consumer marketplace environment and it has the ability to influence both customer satisfaction and retention.
  2. A key difference in marketplace versus drop-shipping and warehousing is that you can increase your revenue without all of the operational expense associated with product management. And you can get rid of warehousing and inventory concerns that often show up with drop-shipping.

While these benefits are certainly positive, owning a marketplace does come with its share of possible issues, issues that you as the marketplace owner get to deal with. Remember that you have to deal with multiple sellers. And sometimes sellers have problems like they don't deliver on time. They may not be putting the product that you want on your marketplace or they may not do so as professionally as you would want. As marketplace owner you take on the responsibility of managing seller issues like this and more. It’s your marketplace brand after all. Think of it this way, when people order something from a marketplace and the product doesn't show up on time, who are they mad at? Probably not the seller. They're mad at the marketplace. Whereas, if the seller runs their own online store as a stand-alone business, any problems are theirs alone to address.

The bottom line is that there are important things to think about and plan for when considering starting your own marketplace.

A great place to learn a bit more about this subject is by listening to the podcast “Should You Build Your Own B2B Marketplace.” It’s part of the Adobe Commerce Talk series and features a discussion with Malcolm Allen, CTO of Kadro. It is available on the Kadro website here. https://lp.kadro.com/commerce-talk-podcast-with-kadro

Given KADRO’s distinctive position as a software engineering company that:

  • supports the engineering, integration and implementation of individual eCommerce websites on the Magento Commerce platform
  • helps businesses efficiently participate in 3rd party marketplaces
  • builds marketplaces for clients wishing to start their own.

we occupy a pivotal vantage point in supporting all these paths to eCommerce.

Whichever path to eCommerce success you may choose, we are here to help.