Anne-Marie Jung, director of external payments, Europe, for Amazon Payments, lives in Luxembourg where — as in so many other countries in continental Europe — there’s no late-night shopping and stores close on Sundays.
“It would explain why I’m a passionate online shopper,” she said. She loves the speed and convenience of online shopping and receiving the packages. “There’s a reason they call it retail therapy,” she said.
Jung seems to be in the minority, though. The majority of online shoppers — or 67 percent — abandon their shopping carts at checkout, according to Business Insider Intelligence. And those shopping carts contain about $6.5 trillion worth of abandoned merchandise, 63 percent of which is potentially recoverable. A recent study showed that 73 percent of shopping-cart content is abandoned for fashion purchases, versus 55 percent for food and drinks. Amazon’s goal is to improve cart abandonment rates and to turn browsers into buyers.
She noted that Amazon has spent the last 20 years building trust with its customers, so they know it is safe to store their credit card information on the site. Her role is to expand that trust in Amazon to other e-tailers as she touted the use of the company’s Login and Pay With Amazon service, which allows consumers to use their Amazon credentials when purchasing from non-Amazon sites, eliminating the need to reregister or input personal information. She showed a video comparing the time it takes to check out at AllSaints.com — using Login and Pay With Amazon versus the AllSaints payment process. It took 36.09 seconds to pay with Amazon and one minute, 19 seconds to pay on the AllSaints site.
Jung described a University of Cambridge study of 3,700 shoppers in Germany, the U.K. and the U.S. that explored customers’ mind-sets during the payment process. The study found that there are five personality types and that people behaved differently throughout the shopping stages. Consumers’ emotions were high as they progressed through the shopping journey and began adding to the cart. Once they got to the payment pages, their positive emotions diminished. Twenty-five percent of them will potentially abandon their carts, 10 percent will abandon them when they have to enter delivery details, and 14 percent will abandon them at the confirmation page. Americans are most likely to complete their purchases. German shoppers are 25 times more likely to abandon their cart versus Americans, Jung said. U.K. respondents are three times more likely to abandon their carts.
The company launched the Login and Pay With Amazon system in Europe last month. As a result of its use in the U.S. (it was launched here in October 2013), clients have seen three times the growth in new accounts. More than 60 percent of new accounts use Login and Pay With Amazon. There’s a reduction in the time it takes a customer to check out by about one minute and 10 seconds per purchase. Within the first two days of being launched, 24 percent of all online sales were made via Login and Pay With Amazon, with an online conversion increase of 34 percent.
Asked whether a brand or retailer gets information on who is buying when it uses Login and Pay With Amazon, Jung said the brand will receive e-mail addresses of every person who buys, “but we do not share any personal details and credit card information.”