We live in a digital world where it is hard to imagine running an e-commerce business without having the proper financial tools. After all, most of the action, if not all of it happens online, so a good digital finance infrastructure can make or break your entire operation.
Nowadays, everybody can start an eCommerce business whether it is drop shipping, Amazon FBA, or something else. This usually means opening a worldwide website where customers from all around the world can purchase products.
So, before you start designing your store and choosing the products you want to sell, you need to worry about processing transactions and managing costs. Since the business operates online, the only solution is to go for a digital finance platform that includes a good overview of your finances, multi-currency payment options, and accessibility 24/7.
Fortunately, there are plenty of digital finance platforms nowadays that can help you set up your eCommerce store in minutes. For example, we have Genome e-commerce services, which offer safety, 20 different payment methods, fast settlements, multiple account options (for a multi-store business), and much more.
Most people are overexcited about opening an eCommerce business, that they forget about the most important things like digital finance. That’s why we decided to highlight why every eCommerce business should always start with building a bulletproof way of processing and observing online payments.
The Backbone of Online Transactions
First things first, digital finance is the backbone of online transactions. It is one of the most important aspects of every eCommerce business, and most businesses that skip this part fail due to loss in profits, conversions, or transaction processing costs.
Since you are building an online business, there is no point in going to some of the traditional financial institutions like banks, just because their services are often designed for personal use or land-based businesses.
Online financial platforms include many different things such as team management, and financial overview of profits and costs, they help you manage refunds the right way, and they are great for processing transactions in different currencies which can later be converted with favorable rates.
Why Should You Care About Digital Payments?
Still not convinced that digital finance is important? Well, think of your latest online transaction. What if you were required to make an online purchase with a money order? – Nobody wants that.
People nowadays have short attention spans (thanks, TikTok), which means that they make impulsive decisions to make a purchase, and if the purchase doesn’t happen in 2-4 minutes, they are a lost customer.
Therefore, they want something quick, seamless, and secure payment options. The only way to provide that is by arming your business with a good financial platform.
It’s Not All About the Features
Having a financial platform with plenty of features is great, but that’s not the whole picture. The goal here is to create a more pleasant shopping experience for the customer, with fewer steps and a better user interface.
Did you know that the average conversion for eCommerce sites in 2024 is around 2%? Yes, it is pretty low and the reason for that is that not many businesses use the full potential of online financial platforms.
Having an optimized payment system can help you reduce card abandonment, and improve conversion. Why? Well, most users quit their purchase session just because the checkout is too complicated.
The Importance of Mobile Payments
Nowadays, everybody shops on their phone, which is why having a mobile-friendly payment option should be your first priority.
A good financial infrastructure means that you should offer seamless mobile payment options. This means that you should integrate options like Apple Pay, Google Pay, and other mobile wallets, which will simplify your customer’s experience and therefore increase your conversion.
Going Global
The whole point of opening an eCommerce store is to sell products to every corner of the world, but sometimes this isn’t possible due to currency and payment limitations. But digital finance isn’t only about processing payments and improving conversions. It is also about opening the doors to a worldwide market, something we all dream of. Digital finance platforms can enable eCommerce businesses to process transactions in different currencies, which means more potential customers.
Benefits of Multicurrency Payment Systems
Multicurrency payment systems enable you to sell globally without the hassle of currency conversion issues, which can deter potential customers. They also provide insights into international market trends, helping you tailor your offerings to different regions.
Security and Trust
Security is a huge concern in the digital finance world. Cybersecurity threats are real, and one breach can tarnish your reputation. Implementing secure payment gateways and adhering to regulations like GDPR for European customers is essential.
Trust is a critical factor in online shopping, and secure digital payment methods play a significant role in building that trust.
Flexibility and Financial Management
Digital finance tools also offer flexibility and better financial management. Platforms like Shopify, for example, offer integrated financial tools that help manage everything from sales analytics to inventory management. These tools provide real-time insights into your financial health, allowing you to make informed decisions quickly.
Automated Financial Tools
Automated invoicing, real-time transaction monitoring, and streamlined bookkeeping are just a few benefits of using digital finance tools. They reduce manual errors and free up your time to focus on growing your business rather than getting bogged down in financial admin tasks.
Photo Credit: rawpixel.com