Since the inception of online shopping, one of the biggest challenges for ecommerce retailers is the issue of cart abandonment. Shoppers will load up their carts, then have second thoughts on how to pay for it, and ultimately abandon their intent to purchase. In fact, an annual Forrester Research Inc. study of 67 ecommerce retailers found that cart abandonment sat at an average of 56% last year.
In an effort to increase completed transactions over the holiday season, PayPal has introduced a â€œPay After Deliveryâ€ program. Not yet available in Canada, this program allows the shopper to complete their transaction immediately, and removes funds two weeks later.
In a perfect world, the cart items will be shipped immediately, the merchant paid immediately, and the shopper has 2 weeks to decide whether to return their purchase.
Only time will tell if a â€˜pay laterâ€™ incentive will have an impact on the cart conversion issue. It is not known when or if the program is scheduled to launch in Canada.