October 4, 2007, 12:00 AM

AllBrands sews up lower processing costs with Google and PayPal

The retailer of sewing machines, vacuum cleaners and appliances is taking advantage of free processing offers from both Google and PayPal. And it finds fewer consumers abandon their shopping carts since the payment options were added to the web site.

AllBrands LLC is finding that fewer consumers abandon shopping carts since it added the streamlined checkout options from Google and PayPal. And it anticipates saving $100,000 in processing costs by taking advantage of free processing offers from Google and PayPal, says John Douthat, president of the online and catalog retailer of sewing machines, vacuum cleaners and appliances.

AllBrands in late December 2006 added Google Checkout, a service that lets registered consumers complete a transaction on a Google page by entering their user name and password. Google Checkout accounted for about 10% of purchases during the first six months of the year, and that went up to 35% this summer when the Google Checkout button was repositioned on the right of the payment page and the only alternative, AllBrands Secure Checkout, was moved to the left, Douthat says. When a PayPal Express Checkout button was added in September, positioned between Google on the right and AllBrands on the left, PayPal accounted for 15% of transactions and Google’s share slipped to 30%.

With Google offering free processing on Google Checkout transactions through the end of the year and PayPal agreeing to three months of free processing on PayPal Express Checkout purchases, Douthat figures he will save $100,000 in processing costs. He notes that even when he has to pay on PayPal transactions, his fees average less than the 1.9% he pays processor Chase Paymentech when consumers choose the AllBrands option and pay with a credit card, money order, check or other option.

Abandoned shopping carts have decreased from 12% in 2006 to 8% this year, Douthat adds. He says he is sure some of that reduction comes from the addition of the Google Checkout option, but cannot say how much because of other changes to the site that could affect the abandonment rate.

AllBrands is No. 407 in the Internet Retailer Top 500 Guide.

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