2024 CODiE Finalist
Softrax

Checkout

What is Checkout?

Checkout refers to the process by which a customer completes a transaction to subscribe or purchase a product or service.

What is a Checkout Process?

The checkout process in SaaS typically involves the following steps:

  1. Selection of plan or subscription: Users select the pricing plan or subscription level that best suits their needs and adds it to the shopping cart. SaaS providers often offer different tiers with varying features and pricing.

  2. User information: Users typically need to provide additional personal information, including their email address, which is used for account set-up and billing purposes on the checkout page.

  3. Payment Processing: The payment information provided by the user is processed securely to complete the transaction. This can involve credit card payments, PayPal, or other payment methods, depending on what the SaaS provider supports.

  4. Confirmation: After the payment is successfully processed, the user typically receives purchase confirmation. This confirmation may include details about their subscription, payment receipt, and instructions on how to access the SaaS product.

  5. Account Setup: In many cases, users are prompted to create a login and password for their SaaS account if they haven’t already done so. This allows them to access the SaaS application and its features.

  6. Access to Product or Service: Once the checkout process is complete and the payment is verified, the user gains access to the SaaS product or service. They can start using the software immediately or as per the terms of the subscription.
6 Steps of Checkout

What are Different Types of Checkout?

There are several different types of checkout processes that e-commerce websites can use depending on their business model:

  • Standard/Single-Page Checkout: This model requires all of the needed information to be (shipping address, payment details, order summary, etc.) presented on a single page, allowing a simplified checkout process.

  • Multi-Step Checkout: This model breaks the process into multiple steps, each focusing on specific information (e.g., shipping address, payment, order review), which can provide a structured and more intuitive checkout experience.

  • Guest Checkout: Guest checkout allows customers to make a purchase without creating an account, and this simplifies the process for first-time or occasional shoppers, who may not want to create an account or who are not interested in storing their information or gaining loyalty benefits for frequent purchases.

  • Account Creation Checkout: This type of checkout encourages customers to create an account during the checkout process, offering the option for features such as order history, saved payment information, and personalized recommendations.

  • Express Checkout: This checkout enables customers to use their pre-stored payment and shipping information from third-party providers like PayPal, Apple Pay, or Google Pay. This can speed up the checkout process significantly.

  • One-Click Checkout: One-click checkout stores a customer’s payment and shipping information for future purchases. This is typical for large ecommerce sites, such as Amazon.

  • In-App Checkout: This option is unique to mobile apps and is especially popular with streaming services or gaming.

  • B2B Checkout: Business-to-business (B2B) e-commerce platforms often have specialized checkout processes tailored to the needs of business customers and can include features like bulk ordering, PO integration, and multi-user accounts.

  • Phone Orders or Call-In Checkout: Some businesses offer customers the option to complete orders over the phone with a customer service representative, which can ease concerns the customer may have of placing the order correctly, answer questions about shipping time, etc.

What is the Difference Between Checkout and Payment?

Checkout is a broader process that encompasses the various steps a company provides and actions a customer takes when finalizing an online purchase.  Payment is a specific step within the checkout process, where customers provide the necessary financial information to complete the transaction.

Can't find the right definition?

We can help.

FREE CPE WEBINAR
00
Days
:
00
Hours
:
00
Minutes
WATCH THE WEBINAR NOW