The way we people are shopping is constantly evolving, but what seems to be here to stay is online shopping. Now, we buy almost everything from an app or a website. For small businesses, this means creating a platform for your customers to purchase online. Most small businesses are moving towards a combination of online purchasing capabilities and an in-person experience. Offering both options give more opportunity for customers to find you and use your services or products.
An online presence has been vital for all small businesses for the past few decades. Having a website offers a sense of legibility for your business. It also provides customers a place to find out more of what you offer, your business hours, and your mission statement. Now, that same website can provide them a chance to purchase from the comfort of their own homes. Since the pandemic hit, the ability to find services and products without leaving the safety of your home has never been more important.
Learn why online payment processing is important for small businesses and how it can help your business grow.
Electronic payments
Electronic payments are any form of payment made online. This can be done with an ACH payment, debit card, or credit card. Incorporating an electronic payment system into your website can ensure that you are able to make sales on all platforms. Online sales account for 13.2 percent of all retail sales in 2021, which is up 14 percent since last year. An estimated 870 billion dollars was spent online. For a complete overview of all retail sales, visit https://www.census.gov/retail/mrts/www/data/pdf/ec_current.pdf.
This revenue is available to anyone with the ability to accept payments from a website or app. As online sales continue to increase, the ability of small businesses to adapt to an online presence is essential. This can be done by creating a website with the capability for online payment processing.
Online payment processing capabilities are necessary for your small business to compete in the current market. This allows people to safely and securely use their card or bank information to pay. There are so many reasons to add this type of service to your website. Below are some of the more important reasons.
Benefits of Online Processing
Sell More:
The most important reason to accept online payments is to make more sales. Sales are what is going to keep your business running, so the more you sell, the longer you have a job. Selling more is the whole point of running a business, so creating more opportunities to sell is always a bonus.
Reach More Customers:
These go along with making more sales. The amount of online shopping is increasing and is expected to continue to increase. Creating a safe platform to make purchases online will give more consumers the opportunity to purchase your products. Especially since the start of the pandemic, people have become increasingly less comfortable shopping in person. Opening up to those exclusively shopping online will increase the number of customers you can reach.
Create a Consistent Purchasing Experience:
Whether you are fully online, fully brick-and-mortar, or a combination of platforms, you want your customer experience to be a pleasant one. If the customer’s interactions with your business are positive, they are more likely to continue to come back. While moving online or to an app, you want your customer experience to be as smooth and easy as possible. Using an online payment processing company can help keep these interactions safe and easy for your customers.
Instant Payment:
When you can offer online payment, you eliminate the need for customer invoicing which can lead to a delay in payment. Some companies can hold payment for business days. Find a company that releases the funds on the same day, even on weekends and holidays.
Recurring Payments:
If you are a subscription-based company, having access to online payments can make it easier for your customers and yourself. This can eliminate the need to invoice and wait for payment. It will ensure payment is on-time and easy for your customers.
Security:
When charges to a bank account or credit card are disputed by the customer, the refund of money back into the account can negatively affect small businesses. When margins are small every cent can count towards being able to pay employees, rent, and other bills. Losing that revenue can be catastrophic. Some companies can help eliminate these disputed transactions by ensuring that all charges are made securely. This can help eliminate loss in revenue, as well as chargeback fees.
Things to Consider
Before you choose the right payment processing company for your small business, there are a lot of factors to consider. Not every business is the same, so some benefits may be more or less important for what you need. When looking into your needs, it’s important to figure out what your customers expect or want, and what you need to function. It is also important to figure out where you expect your business to grow. When looking for payment solutions, plan for what you will need as your business grows.
Costs:
Payment processing companies require a percentage of each transaction and a fee for their services. There are also incidental fees in case of chargebacks. For more information about the transaction fees. When determining which company and plan you need for your business, the amount of costs and fees should be an important consideration. Some companies offer a flat-rate monthly or yearly fee.
Technology:
Whether you are a brick-and-mortar store looking to take payments anywhere, or you are an online platform needing a website, most companies can help with these needs. When looking for a company you want to use, check that they provide the tools necessary to take payments over all the platforms being used currently.
Analytics:
Some companies will offer sales reports that can help you understand your customers better. These analytics can show you common trends with your clients, which will help you be able to increase profits and revenue. By assessing the trends your clients are following you are able to accurately meet their needs and determine what they might want later. This helps increase customer satisfaction and revenue for your small business.
Customer Support:
Finding a company that can provide a constant line to customer support. If there is an issue with their services, you don’t want to have to wait until the next business day to get it resolved. That could lead to a loss of sales until it gets resolved, which is a loss of money for your business. Your online payment processing company should provide a dedicated team of customer support agents that are available 24/7 for any issues that might arise.
Small businesses need an online presence to keep up with the shopping and consuming trends that we currently see. The opportunity to purchase from the safety of their homes gives customers a safer, more reliable, and easier shopping experience. While trends still include the brick-and-mortar stores that customers are used to, more and more people are forgoing that type of shopping experience for an online one. The more people rely on shopping on a website or an app, the more important these online payment processing companies will become.
