Unexpected shipping costs are the biggest reason for shopping cart abandonment, amounting to over $65 billion in unspent customer money. Though most e-commerce merchants want to be transparent about the total cost to customer, they mostly remove the shippinng costs while marketing the product to entice the customer to visit their online store. The hope is that once the customer is on the site, they will continue with their purchase even after the shipping costs have been added. Due to increasing customer acquisition costs, marketing a higher product price will make the advertisement costs significantly higher, further affecting the bottom-line.

Since the nature of the problem is not specific to the industry, we were inspired by the solutions used by video game developers and hence, Rewarded Checkout was developed.

Game developers enable rewarded video ads in gameplay for players to willingly watch ads to get a reward at the end of the ad. These rewards in games could be a character upgrade, resuming the game from a particular level or more. This business model allows the game developer to make money from non-paying customers while the non-paying customers can continue to enjoy their favourite games for free.

What it does

Rewarded Checkout uses the video game freemium business model and creates a win-win situation for e-commerce merchants and customers online. At the checkout, customers are given the option to either pay the shipping costs or watch cascaded rewarded video ads to remove unexpected shipping costs.

Average pre-roll video ad CPMs are ~$10 and for cascaded video ads, it can be a multiple (eg: $50 for 5 ads).

How we built it

Since getting an approved domain on Google Ad Manager can take several weeks, we had to impersonate the rewarded video ads experience for the purpose of the hackathon.

We have used the Rapyd Hosted Checkout Page integration to create a checkout page for an e-commerce site and added an option for pre-roll rewarded video ads for customers to skip the the shipping costs.

Challenges we ran into

We couldn't get the Google Ad Manager approval in time for the hackathon, however the implementation is very easy using the IMA SDK for pre-roll video ads.

There was a bit of a learning curve for integrating the Rapyd APIs; however, once onboarded, the process was very smooth.

Accomplishments that we're proud of

We have built a simple solution for a massive problem, and we strongly believe that a lot of customers and merchants can be helped with this.

What we learned

The simplest solutions are always in front of us, we just fail to see them.

What's next for Rewarded Checkout

We will integrate Rewarded Checkout with the Google Ad Manager IMA SDK and Rapyd's checkout pages to build a production-ready widget for e-commerce merchants.

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