The Internet is a critical revenue driver for many businesses in the modern world. The growing importance of eCommerce has driven many business owners to investigate strategies for improving the performance of their online shopping platforms.
Fixing security issues with eCommerce can help website visitors feel safer and increase their likelihood of making a purchase. Enhanced security can also reduce the risk of fraud, legal liability, and the loss of sensitive information.
Below is a full overview from Sense of Security in Australia of how addressing eCommerce security threats can increase the bottom line for many businesses.
1. Increased Conversion Rates
Customers who visit an eCommerce website are significantly more likely to make a purchase when they believe that their sensitive financial information is secure. For example, a study conducted by ConversionIQ found that displaying a Norton security seal increased conversion rates by 11 percent.
The same study also found a 52 percent increase in sales from traffic originating from paid search channels (read this post to see how eCommerce startups use social media campaign to improve website’s visibility). Businesses that clearly demonstrate their emphasis on security can enjoy improved conversion rates and a better return on investment.
2. Shopping Cart Abandonment
Shopping cart abandonment occurs when shoppers add a piece of merchandise to their online shopping cart, but abandon the checkout page before making a purchase. Shopping cart abandonment rates are key metrics for marketers who utilize eCommerce channels. The average website has a shopping cart abandonment rate of about 50 to 75 percent.
However, websites that fail to convey an emphasis on security can have abandonment rates as high as 95 percent. Some eCommerce websites that have poor security practices could lose more than half of their potential revenue to perceived eCommerce security threats. Therefore, it is critical for websites to demonstrate adherence to security best practices on checkout pages to decrease shopping cart abandonment rates.
3. Larger Purchases
Shoppers who feel secure on a website are more likely to make larger purchases. The percentage of visitors prepared to abandon a website for perceived security reasons increases as the price of goods being sold increases.
Unfortunately, websites attempting to monetize their traffic through expensive product purchases could struggle to earn sales if visitors do not feel secure. Websites that clarify their focus on security, therefore, could realize an increase in larger purchases and higher overall revenue. Secure websites can also lead to more lifetime purchases when customers return in the future or refer their friends.
4. Fraudulent Transactions
Fraudulent transactions are one of the most significant security issues with eCommerce in today’s world. Hackers can inject malicious code into an eCommerce website to skim money from transactions, launder stolen credit cards, or send money to their own bank account.
Sophisticated hackers can even trick a CRM system into believing that a fraudulent transaction was valid or that a transaction never occurred. Website owners who fail to implement a secure system could be vulnerable to fraudulent transactions that could result in astronomical losses. Security measures should be put into place and CRM systems should be regularly updated to prevent fraudulent transactions from occurring.
5. Legal Liability
Website owners who fail to safeguard customer account information could be liable for any resulting losses. The majority of states have enacted security breach notification laws that require businesses to inform customers when their information could have been stolen. Businesses could experience the loss of significant revenue if they are forced to notify their customers that their personal information could have been compromised.
Website owners can avoid most eCommerce security threats by utilizing a secure CRM system that safeguards customer information and prevents hackers from breaking in. The implementation of security measures can also increase conversion rates and encourage customers to purchase more. Businesses that rely on eCommerce channels can realize a significant return on investment by fortifying their website against realistic security threats that exist in today’s world.