Did you know that 70% of shoppers abandon their carts before completing a purchase? Of these, 22% drop off due to a long or complex checkout process. In e-commerce, checkout is the final step that determines whether a buyer converts or leaves.
A seamless payment process boosts customer retention and brand loyalty. While marketplaces provide a familiar checkout, they limit brand control, relying on their payment flows and missing opportunities to optimise conversions and build trust.
In contrast, a D2C checkout experience allows for streamlined payments, personalised interactions, and reduced checkout abandonment rates. For digital platforms, branded checkout isn’t just convenient—it’s a competitive advantage, influencing conversion rates, repeat purchases, and long-term customer relationships.
So, how do D2C and marketplace checkouts compare? Which delivers a better user experience in payment gateways? This blog explores key differences, tracks essential KPIs, and uncovers the branded checkout benefits for D2C growth.
User experience: D2C vs. marketplaces
D2C checkout: Full control, customised experience
A D2C checkout experience allows you to design an effortless, on-brand journey for your customers. You control every touchpoint, from product selection to final payment. This means you can integrate custom payment gateways, offer a variety of payment methods, and improve checkout speed to reduce cart abandonment rates.
Key features include:
- Tailored UI/UX: Align the payment process with your brand’s aesthetics. You can personalise the checkout with your logo, colours, and messaging to create a cohesive shopping experience.
- Optimised user experience: Reduce friction with faster payment flows, saved card details, and one-click checkouts.
- Integrated payment solutions: Support multiple payment options, including BNPL, wallets, and UPI.
- Customer data insights: Capture first-party data to refine marketing and retargeting efforts. Track customer preferences, analyse purchase behaviour, and upgrade retention strategies.
- Flexible checkout flow: Implement single-page or multi-step checkouts based on audience behaviour.
- Flawless cross-sell & up-sell: Encourage additional purchases with AI-powered recommendations to increase order value.
Example: Nike’s branded checkout
A real-world example is Nike’s D2C platform. Their checkout experience offers a clean, intuitive design with saved payment options, express checkout, and tailored recommendations.
It is enhanced for a smooth, personalised experience, leveraging customer preferences and exceptional payment processing. This approach improves customer satisfaction, fosters loyalty and boosts conversion rates.
Marketplace checkout: Standardised and universal
Marketplaces like Flipkart offer a systematic, universally optimised checkout process designed for usability across various brands. They prioritise efficiency and familiarity over branded experiences, ensuring easy transactions across millions of users. While this ensures reliability, it also limits your control over branding and customisation.
Key characteristics include:
- Pre-defined UI/UX: A streamlined interface across all sellers. Customers feel comfortable using a known checkout interface, leading to higher completion rates.
- Third-party payment gateways: Managed by the marketplace with minimal personalisation options. Your business name may appear, but you can’t customise the experience.
- Optimised for speed: Auto-filled addresses, saved payment details, and quick reordering makes checkout seamless.
- Marketplace-owned customer data: No direct access to customer purchase history or behavioural insights. This restricts D2C conversation rate optimisation.
- One-click payments: Many marketplaces offer quick transactions via stored payment methods.
- Cross-seller promotions: Marketplaces push related products from different brands to maximise sales. Customers see competitor products during checkout, increasing the risk of switching.
Example: Amazon’s one-click checkout
A great example is Amazon’s checkout, which is designed for speed and simplicity. Their one-click checkout, combined with stored payment details, facilitates instant purchases. While efficient, it lacks branded checkout benefits for individual businesses.
D2C vs. marketplace checkout: Key differences
| Feature | D2C checkout | Marketplace checkout |
| Branding control | Full customisation | Limited branding |
| Checkout optimisation | A/B testing, personalised UI | Fixed, standardised design |
| Data ownership | Full access to customer insights | Marketplace owns customer data |
| Upselling potential | Direct product recommendations | Limited control |
| Customer loyalty | Strengthens brand connection | Loyalty towards the marketplace |
What works best for your business?
If you prioritise brand identity, customer data ownership, and payment flexibility, a D2C checkout experience is the right fit. It allows you to craft a highly personalised journey that enhances customer retention strategies and builds loyalty.
However, if you prefer built-in trust, broader audience reach, and hassle-free payment infrastructure, marketplaces offer a plug-and-play solution.
Ultimately, the best approach depends on your business goals and customer engagement strategies. Understanding how your checkout design influences retention and loyalty is key to long-term success. (Image/Visual Idea: A comparison chart or flow of D2C vs. marketplace checkout journeys.)
Key KPIs for evaluating checkout efficiency
A well-optimised checkout experience directly impacts conversions. Tracking key performance indicators (KPIs) helps you refine the process for better results.
1. Conversion rates
This metric measures the percentage of users who complete a purchase. Understanding conversion rate benchmarks is crucial for evaluating your checkout effectiveness.
On average, e-commerce conversion rates range between 2% and 4%, varying by industry. For instance, the electronics and home appliances sector sees rates around 3.6%, while personal care products achieve approximately 6.8%.
D2C checkout experiences typically have higher conversion rates due to branded, seamless designs, while marketplaces offer a standardised approach developed for mass usability. Benchmarking your rates against industry standards ensures performance improvements.
2. Abandonment rates
Cart abandonment occurs when users exit before completing a purchase. Common reasons include unexpected costs, slow-loading pages, and limited payment options. Reducing friction through transparent pricing, faster processing, and enhanced user experience in payment gateways helps lower abandonment.
3. Customer retention metrics
A smooth D2C checkout experience establishes brand trust and encourages repeat purchases. Retention metrics like purchase frequency and customer lifetime value (CLV) highlight the long-term impact of a well-designed checkout. Branded checkout benefits ensure familiarity, making customers more likely to return.
| 💡 Tip: Use tracking tools like Google Analytics and Hotjar to monitor user behaviour and identify checkout friction points. |
Benefits of branded checkout for D2C growth
1. Enhanced brand loyalty
Your checkout isn’t just a payment step—it’s the final touchpoint in your customer’s journey. A branded checkout experience ensures consistency, making buyers feel more connected to your business.
When colours, fonts, and messaging align with your brand identity, trust strengthens. Warby Parker, a leading D2C eyewear brand, integrates a sleek, minimalist checkout that mirrors its website, creating a flawless experience.
This familiarity reassures customers, reduces hesitation, and increases repeat purchases. A checkout that feels disjointed, on the other hand, can break trust and reduce loyalty.
2. Improved conversion rates
A clutter-free checkout reduces friction, making the process smoother and faster. A confusing interface, excessive form fields, or too many redirects can frustrate users.
Brands that simplify checkout see higher conversions. Brooklinen, a D2C home essentials brand, does this by offering guest checkout, auto-filling addresses, and multiple payment options, including Apple Pay and Shop Pay.
These small changes prevent drop-offs and encourage impulse purchases. Their approach reduces decision fatigue, keeping the user engaged. Every second matters—studies show a one-second delay in mobile page load can cut conversions by 20%.
3. Upselling opportunities
A branded checkout doesn’t just secure a sale—it maximises revenue. Personalised product suggestions at checkout can increase average order value (AOV) without feeling pushy.
Outdoor Voices, a D2C activewear brand, uses post-checkout pop-ups to recommend accessories like water bottles or socks. Since customers are already in a buying mindset, these suggestions feel natural and valuable. Offering free shipping thresholds or limited-time discounts at checkout can also encourage bigger purchases.
A well-designed checkout isn’t just about payments; it’s about strengthening customer relationships. An effortless, engaging experience turns a one-time buyer into a loyal advocate.
Wrapping Up!
A seamless D2C checkout experience is key to boosting conversions, reducing cart abandonment, and driving long-term customer loyalty. A fast, secure, and frictionless checkout process keeps customers satisfied and encourages repeat purchases.
Stay ahead in the D2C landscape with efficient, secure, and customer-friendly checkout solutions offered by Plural by Pine Labs.
