Shopify Checkout Extensions for Shipping and Payment Methods

Skai Lama
September 4, 2023

In early 2023, Shopify launched Checkout Extensions to allow merchants and Shopify developers to control and customize their checkout holistically. While checkout is one of the most crucial part for any shopping journey, checkout page receives one of the highest drop off rates. According to Hotjar, almost 70% of shoppers abandon their carts on the checkout page. With Checkout Extensions, Shopify has opened new avenues to optimize and increase conversion rate.

While we've discussed the Checkout Extensions 101 and Checkout Migration guide in separate blog posts, this article will focus on customizing shipping and payment methods to reduce drop-offs, boost conversions, and elevate your Average Order Value (AOV). Here's a short video you can watch to get an overview of new Checkout Extensions:

Streamlining Shipping Options in Shopify Checkout

1. Address Correction and Completion

With Checkout Extensibility, you can use custom address logic to detect incomplete and incoherent addresses and tag them to reduce fraud orders.

This feature empowers merchants to implement address validation algorithms tagging incorrect, incoherent and incomplete addresses. By customizing Shopify Checkout Shipping Options, Checkout Extensibility not only enhances the security of transactions but also significantly minimizes the occurrence of delivery errors. This level of address scrutiny goes beyond typical fraud prevention and reduces returns and charge backs.

2. Show Shipping Methods Relevant to Customer

According to the zip code entered by the customer, merchants can display shipping methods that have demonstrated higher success rates for deliveries in that particular region. This dynamic approach to shipping selection provides faster and more reliable options and also optimizes the overall logistics process, leading to cost savings and improved operational efficiency for the merchant.

3. Custom Rules on Shipping Methods

With custom rules, merchants can show specific shipping methods based on rules such as cart amount, product collections, product variants, last purchase amount etc. For example if a cart value exceeds $100, merchants can automatically enable free shipping for the customer.

Incentives like these not only encourage higher AOV and larger purchases but also provides a tangible benefit to the customer, ultimately enhancing their shopping experience and reinforcing brand loyalty. By utlizing such targeted shipping rules, merchants can strike a balance between attracting higher order values and managing shipping costs effectively, resulting in a win-win scenario.

4. Rename Shipping Methods

Merchants can now rename shipping methods to show type of shipping (surface, same/next day delivery, etc), shipping partners, estimated delivery date and more. This transparent labeling not only provides customers with a clearer understanding of the delivery options available but also establishes trust by openly disclosing the involved shipping services. You can also check a blog on managing shipping costs effectively by our partner Kaktus Apps.

Advanced Payment Customizations for Shopify Stores

1. Optimizing Payment Methods on Shopify

Reorder payment methods according to predefined rules, including cart amount, specific collections, product items, and other relevant factors. In case if any payment gateway is facing downtime or certain banks having lower success rate, merchant can reorder and hide such payment methods to ensure every order is processed securely leading to higher conversion rate.

2. Trust Badges

Deploy trust badges to increase trust and credibility. It allows merchants to indicate Shopify Checkout Security Features to customers so that they can enjoy a hassle-free checkout and be confident that their sensitive financial information is safeguarded.

3. Match Billing Address with Delivery Address

It's important to confirm that the billing address provided during checkout matches the address associated with the payment method. Mismatched addresses could indicate potential fraud. By implementing validations on checkout can reduce fraud orders and chargebacks.

4. Payment Method Availability

Some payment methods might not be available in certain regions or for certain products. Merchants can validate the compatibility of the chosen payment method with the customer's location and the items in their cart.

5. Shop Pay Integration

Checkout Extensions natively supports Shop Pay - Shopify's own accelerated checkout method. It’s a one click checkout that allows customers to save their shipping and payment information for faster purchases.

Seamless Integration and Setup

While Checkout Extensibility is exclusively for Shopify Plus merchants, it’s clearly the successor to Checkout.liquid, which powers all Shopify stores. Checkout Extensibility provides flexibility and efficient Shopify Checkout Integration with third-party apps, granting the opportunity for extensively customizing, and enhancing Shopify checkout experience.

While the migration might seem easy, if you are an active store, you should consult a Shopify developer before modifying your checkout.liquid. At Skai Lama, we specialize in checkout migration and setting up checkout extensions for merchants, optimizing them for conversion and higher AOV (Average Order Value). We have also built Checkout Wiz, which is the go-to app for Shopify Plus merchants to customize checkout, shipping, and payment methods. We ensure that your checkout extensions are compatible with the current theme and apps, and we guarantee smooth speed and performance for your store.

Frequently Asked Questions

1. How can I customize shipping methods in Shopify checkout?

To customize shipping methods in Shopify checkout, you can implement address correction, show region-specific shipping methods, set custom rules based on cart value or product types, and rename shipping methods for clarity and transparency.

2. What are effective ways to optimize payment methods on Shopify?

Optimizing payment methods on Shopify involves:

  • Reordering Payment Methods: Arrange payment options based on various factors like cart amount or item types.
  • Deploying Trust Badges: Add badges to increase trust and reassure customers of secure transactions.
  • Address Validation: Ensure the billing address matches the payment method to reduce fraud.
  • Payment Method Availability: Check and display payment methods suitable for the customer’s location and cart contents.
  • Shop Pay Integration: Utilize Shopify's accelerated checkout method for faster and more secure transactions."

3. How do checkout extensions enhance the Shopify shopping experience?

Checkout extensions enhance the Shopify shopping experience by allowing merchants to tailor the checkout process with custom shipping and payment options, improving the likelihood of conversion and increasing Average Order Value (AOV) through a more personalized and efficient checkout.

4. What security features can be integrated into Shopify checkout?

Security features that can be integrated into Shopify checkout include:

  • Trust Badges: Display security badges to build customer confidence.
  • Address Matching: Validate that the billing and delivery addresses match to prevent fraud.
  • Secure Payment Gateways: Use reliable and trusted payment methods to ensure transaction safety.
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