The Hidden Costs of Checkout Friction—And How to Fix It

Checkout should be the easiest part of the online shopping experience. A customer has already decided to buy, so why make it harder than it needs to be? But too often, businesses unintentionally introduce friction, leading to abandoned carts, lost revenue, and frustrated shoppers.

The Cost of a Complicated Checkout

Cart abandonment is a massive problem with almost 70% of shoppers abandoning their carts. That means nearly seven out of ten shoppers leave without completing their purchase. Of those, 18% abandon their carts specifically because the checkout process is too long or complicated.

And that lost revenue adds up. Forrester Research estimates that businesses lose $18 billion annually due to cart abandonment.

What Causes Checkout Friction?

Friction comes in many forms, but the most common issues include:

1. Too Many Steps: The more fields a shopper has to fill out, the more likely they are to give up. Every additional step is an opportunity for them to rethink their purchase.

2. Forcing Account Creation: Some customers are happy to make an account, but many just want to check out as a guest. Forcing registration can send them elsewhere.

3. Hidden Costs: Unexpected fees for shipping, taxes, or other charges showing up late in the process are a common reason for cart abandonment.

4. Limited Payment Options: Not everyone wants to enter their credit card details manually. A lack of digital wallets or buy-now-pay-later options can push shoppers away.

5. Slow Load Times: Even a few extra seconds can cause drop-offs, especially on mobile. Google found that a one-second delay in mobile load times can impact conversions by up to 20%.

How to Reduce Friction and Increase Conversions

Fixing checkout issues doesn’t mean overhauling your entire process. Small tweaks can make a big difference.

1. Streamline the Process: Reduce the number of fields, autofill information where possible, and remove unnecessary steps.

2. Enable Guest Checkout: Let customers buy without creating an account. If you want them to register, offer that option after the purchase is complete.

3. Be Upfront About Costs: Show shipping fees, taxes, and any other charges before checkout to avoid unpleasant surprises.

4. Offer More Payment Methods: Digital wallets like Shop Pay, PayPal, and Apple Pay make checkout faster and easier. Flexible payment options like buy-now-pay-later (BNPL) can also boost conversions.

5. Optimize for Speed and Mobile: Make sure your checkout loads quickly on all devices. A slow or clunky mobile experience drives customers away.

The Role of Order Management in a Frictionless Checkout

A seamless checkout experience isn’t just about the front-end interface—it’s also about what happens behind the scenes. An order management system (OMS) plays a crucial role in reducing checkout friction by ensuring accurate inventory availability, automating order routing, and synchronizing key checkout processes.

• Accurate Inventory Visibility: Nothing disrupts a checkout process more than discovering an item is out of stock after you've decided to buy it. An OMS ensures that customers see only available inventory, reducing disappointment and abandoned carts.

• Automated Order Routing: An OMS determines and displays the fastest and most cost-effective fulfillment option, whether it’s shipping from a warehouse, store, or third-party logistics provider, ensuring transparent and quick delivery.

• Checkout Synchronization: An OMS integrates with tax engines, pricing systems, and promotions engines to ensure discounts, taxes, and fees are applied accurately at checkout—preventing errors that could lead to customer frustration or lost sales.

Final Thoughts

Checkout friction is an expensive problem, but it's also one that can be fixed. By focusing on speed, simplicity, and flexibility, businesses can turn more shoppers into buyers. Small optimizations make a big difference, and solutions like Shop Pay can help create a checkout experience that keeps customers coming back.

Connect with us to learn how an order management system, and related integrations, can help reduce your checkout friction.