Checkout: Meaning and How It Works
Checkout is the payment process in an online store—that is, the final step from the shopping cart to a completed purchase. On the checkout page, shoppers enter their information, select a payment method, and confirm their order. Because many purchases are abandoned at this stage, checkout is a key factor in a store’s conversion rate.
At a Glance
- Checkout is the final step in the payment process in an online store—similar to the cash register in a brick-and-mortar store.
- It includes data entry, payment method, order summary, and purchase confirmation.
- About 70 percent of order processes are abandoned at checkout.
- A simple and trustworthy checkout process reduces cart abandonment and increases the conversion rate.
What are the steps involved in the checkout process?
A checkout process combines several steps on one or more pages:
- Order summary with products, prices, and shipping costs.
- Entering contact, billing, and shipping information.
- Select a payment method, such as PayPal, credit card, Klarna, or SEPA direct debit.
- Confirmation and completion of the purchase via a clear call to action.
Depending on the setup, this can take the form of a one-page checkout on a single page or a multi-step process with a progress bar.
Real-World Example of a Merchant of Record
Ben sells an online course. In his old checkout process, customers first had to create an account and fill out many fields, which caused many of them to abandon the purchase. He switched to a guest checkout with just a few required fields, added PayPal and Klarna as payment options, and displays the total cost transparently. As a result, more potential customers are completing their purchases.
ablefy classification
ablefy offers a checkout experience designed to maximize conversions. In addition to multiple payment methods, you can integrate elements such as order bumps, upsells, countdowns, and trust seals. The "Checkout" page on the ablefy website provides an overview.
Common Misconceptions
- "Checkout and shopping cart are the same thing." The shopping cart collects the products. Checkout is the subsequent payment process leading up to the confirmed order.
- "More fields in the checkout process build more trust." In most cases, the opposite is true. Every additional required field increases the abandonment rate.
- "A mandatory account is required to make sales." Placing a guest order lowers the barrier to entry and can be upgraded to an account later.
Frequently Asked Questions About Checkout
Why do so many customers abandon their carts at checkout?
Most often because of mandatory registration, too many fields, a lack of payment options, or unclear shipping costs.
What is a one-page checkout?
A checkout process that combines all steps on a single page instead of spreading them across multiple pages.
What payment methods should a checkout offer?
Several common payment methods, such as PayPal, credit card, Klarna, and SEPA direct debit. A lack of payment options is a common reason for abandoning a purchase.
