Shopify claims it has the best percentage of website visitors buying something, or conversion rates, among other e-commerce companies that offer checkout solutions.
Shopify said it has worked with a “Big Three global management consulting firm” to study the checkout services of major commerce platforms. Shopify did not disclose the firm’s name.
The review found that Shopify’s overall conversion rate outpaces its competitors by up to 36 percent after comparing the Canadian tech company’s performance with Salesforce, Magento, and BigCommerce.
Shopify processed over half a trillion dollars of gross merchandise value in 2022.
Notably, PayPal and Amazon, which also offer accelerated checkout services, were not mentioned in the study. It appears there are no publicly available studies that compare Shopify’s conversion rates with the two major American corporations.
Shopify first introduced its instant checkout solution, Shop Pay, at its developer conference in 2017. Shop Pay is meant to make checkouts easier by reducing the amount of information that a customer needs to provide.
Customers can sign up for a Shop Pay account, which stores all of their credentials to allow for quicker payments in future purchases. This reduces the checkout process to one click, which Shopify said is four times faster than checking out as a guest customer.
Shopify made Shop Pay available to businesses outside of its ecosystem in 2021, extending the service to any organization selling on Facebook or Google.
In this latest study, Shopify claims its Shop Pay product can raise conversion rates by up to 50 percent compared to guest checkout methods. Additionally, Shopify claims that Shop Pay’s conversion rates are 10 percent higher than other accelerated checkouts.
RELATED: Shop Pay to be offered to non-Shopify merchants on Facebook, Google
Shop Pay has placed Shopify in more direct competition with retail tech giants like PayPal and Amazon. However, both those companies’ accelerated checkout solutions have been in the market longer than Shopify’s product.
PayPal launched its Express checkout functionality in 2005, for example, extending that feature to mobile devices in 2010. Amazon made its one-click checkout technology available to customers in 1997.
In 2022, Shopify processed over half a trillion dollars of gross merchandise value and supported 561 million unique online shoppers. At its peak holiday sales event that year, Shopify’s checkout solution processed $3.5 million in sales per minute.
Since then, Shopify made several updates to its checkout process, like optimizations in button display and field order, as well as more significant changes, like adding the ability to complete purchases on one page.