A Profitero study showed Target’s online prices were 25% more expensive than Wal-Mart’s, which were just slightly more expensive than prices on Amazon.
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The latter is important because high turnover of personnel can mean loss of knowledge. “Payments are more complex than ever, and they are only going to become more complex,” says Clump. “If a payments service provider does not have a long-tenured staff they are less likely to be knowledgeable about how to meet the retailer’s payments and risk management needs.”
Given how sound payment practices can help retailers increase conversion rates, expand geographically and reduce fraud and other costs, it’s clear online retailers need to take a strategic approach to payments.
“Payments and risk management are playing a more strategic role in the retailers’ businesses than ever,” says Kuzio. “Retailers need to fully understand the total cost of accepting a payment, not just the processing of the payment, as well as how to properly manage the risk of that transaction, and what those costs mean to their business. And they need to be thinking proactively about the next change in payments and how they can leverage the trend to grow their business.”