Person pushing a "buy" button on a keyboard
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Why Hasn’t One-Click Checkout Gained Much Traction Beyond Amazon?

Research from Cornell University finds adding “one-click” checkout leads online shoppers to increase their website visits, purchase a broader range of merchandise and spend an average of 28.5 percent more versus previous buying levels.

“Because one-click takes so much pain away from the shopping experience, we see consumers willing to spend more time on the site and search for more items,” said Murat Unal, a former Cornell professor who’s now an economist at Amazon.com, in an article for the Cornell Chronicle.

One-click checkout requires customers to store payment and delivery information with the retailer beforehand, eliminating the tedium of doing so with every checkout.

Amazon is known for its “Buy Now” button partly because it held the “1-Click” patent from 1999 until 2017. Amazon licensed the technology to Apple just before the launch of iTunes.

In a Knowledge at Wharton podcast recorded soon after the patent expired, Kartik Hosanagar, a Wharton marketing professor, described one-click as a “huge asset” for Amazon and “a very important event in the history of e-commerce.” He elaborated, “First, it was a very simple and intuitive system and generated a lot of controversy — could something so simple and obvious be patented? Second, it became an important part of the experience that Amazon offered and became a flag bearer for the convenient shopping experience that Amazon came to be known. And finally, it showed how e-commerce was as much about technology and data as it was about retail.”

Paypal, Apple and Shopify have introduced one-click offerings with the promise of reducing cart abandonment, but one-click isn’t as pervasive as some predicted it would become after the patent’s expiration. One-click checkout startups have also faced turbulence with Stripe-backed Fast shutting down last year and Bolt undergoing layoffs earlier this year amid revenue shortfalls.

Joseph Yang, a partner at PatentEsque Law Group, believes Amazon still has a competitive advantage due to its long ownership of the patent. He told Business Insider last year, “You start to build up these huge databases of information, and you start keeping records of past purchases, and a lot of the value in your business is actually in the data.”

BrainTrust

"Technical hurdles aside, one-click checkout requires a high level of consumer trust and could backfire."

Carol Spieckerman

President, Spieckerman Retail


"People make mistakes. One-click checkout creates potential pains in the neck for the shopper who pressed the wrong button and has to cancel the order then go back again."

Paula Rosenblum

Co-founder, RSR Research


"Call me out-of-touch, but I thought it was because Amazon was suing everyone who attempted it?"

Jenn McMillen

Chief Accelerant at Incendio & Forbes Contributing Writer


Discussion Questions

DISCUSSION QUESTIONS: Why hasn’t one-click checkout become more common on retailer websites? Is Amazon positioned better than most to capitalize on one-click technologies or will others eventually catch up?

Poll

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Mark Ryski
Noble Member
11 months ago

It’s a good question and, notwithstanding Amazon’s patent, the reason the technology has not been more broadly implemented may be because it’s harder to implement than it looks. Furthermore, as a consumer, one-click requires trust in the seller. If a consumer doesn’t trust or know a seller well enough, they may be disinclined to “one-click” to purchase. While online sellers may be a little slow coming to the one-click party, they will show up eventually.

Paula Rosenblum
Noble Member
11 months ago

People make mistakes. One-click checkout creates potential pains in the neck for the shopper who pressed the wrong button and has to cancel the order then go back again.

Also it seems to lend itself to single-item shopping. I do one-click checkout when I know I have nothing else to buy. If you have more items, you have to use the cart–period. Most retailers would prefer add-on sales.

David Naumann
Active Member
Reply to  Paula Rosenblum
11 months ago

Great point about not encouraging multi-item shopping. For single-item impulse purchases, one-click checkout works well. However it has to be from a retailer that you frequently shop and you have to have your payment and shipping information previously entered.

Raj B. Shroff
Member
11 months ago

I think most retailer e-commerce sites still approach engagement with a shopper as transactional unless that shopper is part of a loyalty program. Even then, it seems that there is still a disconnect between loyalty log-in and a transactional type of interaction. Amazon has always viewed their shop as a relational ecosystem and has built their experience accordingly.

There are many problems with mass retail e-commerce sites, I’m not really sure what’s going on. Perhaps it is rooted in the continued use of legacy technology and a lack of understanding of e-commerce at the highest levels of management and decision making. Also there is still likely a very operational-first mindset versus a shopper-first/-centric mentality.

It seems as though Amazon is the only retailer who wants to make shopping and purchasing easy. So, yes, they seem to be better positioned to capitalize on one-click.

Jenn McMillen
Active Member
11 months ago

Call me out-of-touch, but I thought it was because Amazon was suing everyone who attempted it?

Georganne Bender
Noble Member
11 months ago

As a consumer, I am good with one-click checkout for Amazon, Target, and the few other retailers that I use on a consistent basis. I am not so willing to store my information on sites that I use only occasionally and I don’t think I am alone.

Sometimes trust outweighs convenience. Consumers need to have a strong trust in a brand before giving it open access to personal information.

Carol Spieckerman
Active Member
11 months ago

Technical hurdles aside, one-click checkout requires a high level of consumer trust and could backfire. Especially when shopping on an unfamiliar platform, shoppers want the ability to back out, add on, and edit prior to committing. Clicking “misfires” with one-click can end up alienating shoppers and causing customer service pains for online platforms. Efficiency isn’t the be-all and end-all for online shopping.

Lisa Goller
Trusted Member
11 months ago

One-click checkouts aren’t pervasive, as most retailers prioritize retail (vs. tech-infused retail) processes.

Amazon has the edge in one-click ease because technology for customer experience is the core of its brand.

Gene Detroyer
Noble Member
Reply to  Lisa Goller
11 months ago

Well said. They don’t see customer experience as part of the brand.

Lee Peterson
Member
11 months ago

That’s the $64 billion question, isn’t it? Why didn’t retailers go after Amazon’s innovations earlier across the board? Prime Day, next-day delivery, and self-checkout have all exposed retailers’ primordial response to innovation: “let’s see what happens.” And then they get run over by the innovators. What you’re asking has always been a mystery to me. Perhaps it’s a legal issue, at least that’d be a good excuse.

Dick Seesel
Trusted Member
11 months ago

Speed, ease and convenience have been Amazon’s mantras forever. (And, oh yes, price and assortment.) It’s hard to figure out why other retailers with robust e-commerce sites (Target and Walmart, for example) haven’t embraced this since the patent expired over five years ago. Maybe their focus continues to be on the smooth meshing of online sales, store visits and BOPIS — but they are missing an opportunity.

Paula Rosenblum
Noble Member
Reply to  Dick Seesel
11 months ago

Because one-click checkout eliminates or disincentivizes add-on sales. I am glad retailers are no longer following every move Amazon makes.

Ryan Mathews
Trusted Member
Reply to  Paula Rosenblum
11 months ago

Paula,

With Amazon you have the option to add an item to a cart order. Seems simple enough for others to follow.

I suspect most Amazon shoppers don’t wait to buy multiple items on one order but are probably buying a specific item or two.

It would be interesting to know if a.) that was true, and b.) if anyone there has calculated the “lost sales” figure. I have no idea about either of those questions, but knowing those answers would significantly clarify the one-click value proposition.

Paula Rosenblum
Noble Member
Reply to  Ryan Mathews
10 months ago

Perhaps I misunderstood. I thought they were talking about “buy now” vs. “add to cart”

Gene Detroyer
Noble Member
11 months ago

Today’s discussion got me thinking about two things I never think about when shopping online.

The first is how easy it is to buy from Amazon–just click-click, you’re done. Amazon has spoiled me.

The second, and the corollary to that, is the frustration engendered by the websites that force you to go through page after page of fill-ins to complete the purchase and how many times I just forget it and do not complete the purchase.

Additionally, data collection is invaluable to the retailer if they are sophisticated enough to use it properly.

Why haven’t more adopted this apparently simple tool? I suspect it is a mindset and a lack of understanding of the online shopping behavior of the customer. They are not thinking, “We don’t need this.” Rather they are not thinking at all about what it takes to get the customer to click.

Ryan Mathews
Trusted Member
Reply to  Gene Detroyer
11 months ago

Gene,

I agree on both your initial points. Like you, I’m spoiled. And like you, I think lots of branders and retailers “don’t get” online consumers yet.

That said, there is some merit to the points about trust raised by the others here. Also, returns policies should be figured into the equation.

But on balance, I agree. Color me lazy.

Mark Self
Noble Member
11 months ago

Trust. Other brands have not earned it to the extent Amazon has. Further, the more “hacks” that occur and subsequently get featured in the news, the less excited consumers will be to leave credit card information, etc. I do not see the gap closing for a long time, and many companies will not have the patience to build the digital infrastructure along with the trust needed to bridge this gap.

Gene Detroyer
Noble Member
Reply to  Mark Self
11 months ago

I totally and sadly agree. “Many companies will not have the patience to build the digital infrastructure along with the trust needed to bridge this gap.” They look hard at their sales but don’t spend time on how the customer reacts when online.

Michael Zakkour
Active Member
11 months ago

An interesting question. I think there may be a few contributing factors. For the consumer there needs to be trust in the retailer and an expected frequency of shopping with said retailer. For some retailers there is a continued hesitancy around implementing new technology deployed by trailblazers.

Brandon Rael
Active Member
11 months ago

Amazon has set the industry-wide standard for a seamless, efficient, scalable digital commerce experience. The one-click checkout experience is more than just a front-end customer-facing capability. It is backed by the trust and confidence that Amazon’s advanced supply chain networks and global marketplace can provide real-time inventory insights, otherwise known as “available to promise.”

Walmart, Target, Kroger, and Best Buy have yet to enable the front-end one-click digital checkout experience because it is a highly complex and risky proposition. To enable this, retailers have to invest significantly in the supply chain, warehouses, distribution, inventory management, order management, real-time data, and analytics solutions to ensure that the available-to-promise functionality delivers the optimal customer experience.

Consistency breeds confidence around inventory availability. This is one of the main drivers as to why Amazon, Walmart, Target, Kroger, and others invest significantly in the supply chain and digital capabilities.

Richard Hernandez
Active Member
11 months ago

When I first saw this some years back, I thought it was a great idea. The issue is sometimes it does not work on all websites (although they offer it) and you have to jump through a few screens to get to the end. I might as well just go through the normal checkout process. I am pretty tech savvy, and I think if the normal shopper had to do this several times, they would abandon this in lieu of the regular checkout process. It’s not ready for prime time–yet.

Craig Sundstrom
Craig Sundstrom
Noble Member
11 months ago

TBH, I’ve never noticed the checkout process at Amazon being much different than other retailers; so I’m not sure whether I’m not taking advantage of it or I don’t fully understand what is meant (perhaps I’m interpreting the picture here literally).
Anyway, it’s axiomatic that the easier it is to buy something, the more people will do so; or to be more precise, the harder it is, the fewer people will buy. So it should never be difficult; but can it be too easy?? If the process leads people to buy things they end up returning, or not taking advantage of promotions or is susceptible to fraud, then it seems it could be.
So my advice to other retailers is to keep this tech in mind, but not urgently.

Georges Mirza
Member
11 months ago

It starts with Trust. Amazon built Trust over time, and shoppers know that if they make a mistake, they will make it right. Plus, we do spend more time buying from Amazon than anywhere else. Also, I would guess that one-click checkout is mainly used for repeated purchases or frequently consumed products. Hence, you are not primarily in a rush for them to be delivered or have to be wondering about size, fit, and color… and all your purchase info is stored with the retailer along with the shipping address as part of the subscription.

I am mixed, though, about the validity of a one-click patent. Doing a quick search for more history on the patent, it seems it has been controversial based on back-and-forth court decisions across several countries. Patenting something obvious and easy to do with no secret sauce… does not seem to rise to a level of a patent. I guess good for Amazon to make it work.

Shep Hyken
Active Member
11 months ago

Why wouldn’t a customer want an easier checkout experience with the companies they do business with regularly? (Rhetorical question!) When you read the stats and findings at the beginning of the article, it doesn’t make sense more retailers wouldn’t try to implement a frictionless “one-click” checkout experience – or at least something close to it. Amazon is a trusted brand, which is why customers are willing to store credit card info (and more) with the brand. Others must work harder to build up similar levels of trust if they expect to take advantage of those enticing benefits of having a customer willing to become a “one-click” customer.

Anil Patel
Member
10 months ago

Customers shop from Amazon simply because of the belief that the platform will have all the products they need. Additionally, with Amazon’s One-Click Checkout, the typically complicated and time-consuming online purchasing process is streamlined, reducing the likelihood of customers abandoning their shopping carts. The technology is also highly beneficial for purchasing single-line items and plays a significant role in the overall holistic experience that Amazon offers.

Moreover, One-Click Checkout not gaining much traction beyond Amazon has nothing to do with the technology or patent. Rather the key issue is that companies don’t prioritize a digital-first approach. In my opinion, legacy retailers need to shift their mindset and consider how they would start their business operations in today’s digital age to stay competitive and ensure customer satisfaction in a better way.