One of the most prolific ways for E-commerce retailers to stay afloat in today’s retail landscape is by offering online financing. This will enable your customers to buy from you conveniently and in a cost-effective manner. Moreover, incorporating the buy now pay later option as part of cart financing will help your customers budget for their purchases. Furthermore, it can go a long way to aid them to enjoy your products guilt-free. Buy now pay later, popularly known as Point Of Sale financing is a solution that allows a merchant to receive payment for purchases with an upfront fee and the balance to be settled in installments. Grab a seat and let us demystify how buy now pay later is a win-win.
Convert More Visitors
Buy now, pay later has been tested and proven to be an effective method of inviting more sales. Moreover, to add icing to the cake, you will be able to sell more if you can allow your clients to make payments monthly rather than paying at once. Moreover, the solution can be used on orders with multiple its and those with high-value items. For example, a customer may want to purchase six products for a total of $130. As a wise retailer, give the consumer more financial freedom by allowing the client to pay in three installments of $49. Few buyers tend to have second considerations on the price tag once the monthly payment option is offered.
Buyers Will Spend More Money
From the above example, it demonstrates how shoppers tend to spend more money on the same item for the convenience of the consumer financing option. Therefore, it is a win-win. Buyers get more of what they need while you as the merchant will be guaranteed increased revenues. Moreover, consumers benefit from a more predictable budget while the retailer can get better profit margins for some items.
Shoppers Value Choices
Nevertheless, customers can still go for a lump sum option or decide not to buy at all. The bottom line remains that customers value options. Furthermore, offering point of sale financing communicates your intentions of reducing the customer’s hassle of purchases. This in turn shows you intend to meet their expectations.
According to Neil Patel, ” 56% of customers expect a variety of payment options on a checkout page.” Hence, more than half of your clientele require the ability to make payments in installments. Moreover, more people require these financing options especially in times of economic difficulty such as this one being experienced as a result of the current pandemic.
Lower Overhead and Admin Costs
Even though there is a fierce debate of offering monthly payments, with the opposers lamenting the option leads to massive admin problems. These naysayers have gone further to comment that it robs you a substantial part of your revenue. This can be as a result of the customer ceases making payments on the due dates or the client’s credit card expires before full payment. Moreover, you could witness an increased product return which is costly looking at the resources spent on every purchase.
However, it does not have to end this way! Partnering with a service provider such as ChargeAfter.com can offer you a plausible solution. Whenever a buyer purchases the ChargeAfter gateway, you get the money upfront on behalf of the buyer. As such, ChargeAfter services the loan without leaving you with the risk. This simplifies the customers’ experiences which often leads to repeat businesses.
The world of E-commerce is fast evolving so are payment options. Digital wallets have become the order of the day although most customers treat buy now pay later as their favorite option. Try it and watch your revenue double and your customer base triple!