With the growth of ecomm comes an ability for bedroom businesses to start up, and scale up, quicker than ever. But as your business grows, so do your payments needs
With around 90 per cent of British internet users shopping online*, e-commerce channels are now a crucial fact of life for every B2C business.
Online retail sales are growing at an annual rate of around - and often in excess of - 10 per cent, compared to 4 per cent overall. Roughly 18 per cent of retail sales are now online**.
Consumers in their droves are taking advantage of the convenience offered by online shopping.
E-commerce businesses also value convenience, particularly when it comes to payments providers.
Understandably, many startups opt for a recognised processor like PayPal. This solution works well for those with low capital backing and who lack the safety net of a dedicated procurement team.
Over time, though, requirements tend to change.
As a growth-based business looking to emulate kitchen table success it’s highly likely that your payment needs will become complex and wide-ranging.
For example, you might want to implement recurring billing, direct debit, or exotic scheme and multi-currency acceptance.
With growth also comes a desire to better understand payment declines, gain access to in depth transactional data and above all, benefit from a flexible, volume-based pricing model.
But how does an expanding e-commerce business navigate the payments sector and its solutions which, on the face of it, appear to require specialist knowledge?
As with any sector, a good provider will help prospective clients understand how different solutions work and their relevance to business objectives.
It’s vital that you’re able to grasp the pros and cons of a flat-rate bundled payments processor versus a full merchant acquiring solution geared towards supporting your long-term business growth.
The payments aim of any e-commerce business is to optimise transactions and minimise declines for lowest possible price. There often comes a point when a bundled solution struggles to reconcile volume with value for its customers.
If this is starting to sound a bit like your situation, it might be worth using our handy savings calculator to see how much you could save with a tailored payments solution.