Cennos, Inc.
  • Core Services
    • Product Content
    • Imaging
    • Editorial Content
  • Advanced Services
    • Paid Marketing and Analytics
    • Price Matching Market Research
    • Invoice Reconciliation
    • Dedicated Project Consultant
  • Who We Are
  • Contact
  • Particles
  • Core Services
    • Product Content
    • Imaging
    • Editorial Content
  • Advanced Services
    • Paid Marketing and Analytics
    • Price Matching Market Research
    • Invoice Reconciliation
    • Dedicated Project Consultant
  • Who We Are
  • Contact
  • Particles

Banking on Flexibility with Buy Now, Pay Later

11/6/2020

0 Comments

 
If becoming a digital store felt overwhelming, what we’re about to discuss may make you sweat. Don’t. It’s an up-and-coming topic developing in the changing world of ecommerce merchandising. It addresses how to collect on what you sell, and how to make it easier for your customers to buy.

Dubbed “BNPL” for short, the concept of Buy Now; Pay Later offers payment plans for goods–something that was once only a reality for big retailers offered through proprietary credit cards, or by accepting bank cards. That’s still a way to go, but what if you could ease the pain of customers who really want what you have, but are constrained by a temporary financial shortfall?

In the era of a global pandemic, creative financing has taken on various forms; experts believe the shutdowns have advanced ecommerce developments by up to five years. As shopping online has exploded, strategic agreements with underwriters mean even small businesses can entice buyers with offers to pay in installments.

Flexible payment methods are attractive to nearly 60 percent of consumers who purchase online. Those numbers might incentivize your decision to explore the possibilities. Though not without limitations, it’s at very least a marketing tactic that accommodates tough times.
Offering payment flexibility requires a direct integration through your point-of-sale system, and that initial step is big. Some players providing this service include Affirm, Afterpay, Klarna, and Quadpay. PayPal, perhaps the most prolific online payment platform, announced in August that it would begin a launch.
​
One study analyzed data of BNPL programs over a three-month period, reviewing almost a half-million transactions across more than 300 retailers. They included the above five platforms. Here’s what they found:


  • PayPal represented a vast majority of transactions, totaling 65 percent.
  • Afterpay ranked second with 10 percent.
  • Affirm gobbled up 6 percent of online BNPLS
  • Klama represented 5 percent, and
  • QuadPay lagged last with 2 percent.
Picture
The allure of this flexible payment concept should be obvious. Like other marketing strategies used to gain customers and sales, these flex-pay plans succeed in an almost incidental branding for your biz. Customers already warming up to your site will remember the ease of splitting up payments. It’s no surprise that TV-based home shopping networks have such a loyal following – not only have they created leisurely and pleasant ways to shop over the past four decades, they’ve also built captive audiences through their rollout of flex-pay plans that began in the 1990s.

The upside is documented through impressive statistics. Average order values increase by up to 45 percent. An increase in conversions of 35 percent has been achieved through this creative financing. And returns decrease to just over 5 percent, an impressive number.

Some options you might offer for split-pay transactions include a pay-in-full with no interest for 30 days; pay in the short term with multiple installments and no interest; pay in the short term with no interest but a slight price difference; pay in the intermediate term with several installments and no price adjustment, but a low interest that accrues.
​
Find out more about this tempting way to increase sales and develop a comprehensive customer loyalty at Practical Ecommerce. It covers the nuts and bolts of merchant costs, expectations, and scenarios that may make the flex-pay system more or less palatable for your business.
0 Comments



Leave a Reply.

    Archives

    October 2021
    September 2021
    August 2021
    July 2021
    June 2021
    May 2021
    April 2021
    March 2021
    February 2021
    January 2021
    December 2020
    November 2020
    October 2020
    September 2020
    August 2020
    July 2020
    June 2020
    May 2020
    April 2020
    March 2020
    February 2020
    January 2020
    December 2019
    November 2019
    October 2019
    September 2019
    August 2019
    July 2019
    June 2019
    May 2019
    April 2019
    March 2019
    February 2019
    January 2019
    December 2018
    November 2018
    October 2018
    September 2018
    August 2018
    July 2018
    June 2018
    May 2018
    April 2018
    March 2018
    February 2018
    January 2018
    December 2017
    November 2017
    October 2017
    September 2017
    August 2017
    July 2017
    June 2017
    May 2017
    April 2017
    March 2017
    February 2017
    January 2017
    December 2016
    November 2016
    October 2016
    July 2016
    May 2016
    April 2016
    February 2016
    January 2016
    December 2015
    November 2015

    Categories

    All
    Accessibility
    Ads
    Amazon
    Analytics
    Augmented Reality
    B2B
    Best Practices
    Branding
    By Alexa
    By Jan
    By Jessie
    By Joe
    By John
    Chatbots
    Color Of The Year
    Content Marketing
    COVID19
    Data Protection
    Decor
    Delivery
    Digital Marketing
    Eco-friendly
    Ecomm
    Ecommerce
    Editorial Services
    Email Marketing
    Facebook
    Finance
    Google
    Green Commerce
    Holidays
    Instagram
    IRCE
    Las Vegas Market
    Misc
    NRF
    Outsourcing
    Pantone
    Payments
    PayPal
    Pinterest
    Productivity
    Product Services
    Q&A
    Retail
    Seo
    Shipping
    Shopify
    Shopping Cart
    Social Media
    Social Media Marketing
    Style Spotlight
    Supply Chain
    Sustainability
    Tips And Tricks
    Tools
    Trends
    Twitter
    Usps
    Voice Search

Core Services
Advanced Services
About Cennos
Blog: Particles
​
Contact
© COPYRIGHT 2020. ALL RIGHTS RESERVED.