E-commerce is the spot of stiff competition, in this ever-growing competitive world every business wants to stand out. E-commerce brought back the trend of “Buy now pay later” which is quite similar to financing a home or a car. Whether it’s an online business, a physical store, or both. This strategy is beneficial to everyone. Nothing can be more tempting than the idea of purchasing now and paying later. It increases buys and revenue for your e-commerce, BNPL is the next big payment thing in the retail world.
In this process, customers can order and get whatever they want. Later they can pay in installments. They don’t have to pay any interest or fine unless there is a delay in payment.
Here we’ll discuss the advantages of BNPL and in the later sections, we will talk about making it work for your e-commerce. But first, we will start with a brief introduction to BNPL.
What Is Bnpl?
The theory behind this strategy is; that the customer makes a purchase and then they pay later in small installments. So instead of paying the entire amount up front, they pay it in small divisions.
You can use third-party financings like Paypal or Klarna credit. You also have an option to create your own. BNPL is getting huge popularity in the retail world. So now we will discuss the benefits of BNPL.
Advantages Of Bnpl
Now we know what BNPL is, so in this part, we have enlisted few reasons that justify its impact.
● More Audience
Your customers prefer paying a monthly amount instead of paying it all at once. This allows them to buy products at a higher price even if they don’t have the budget. But your installment payment method should not only be restricted to the products with a higher price. It can be also applied to multiple items or purchases. For example, if your customer is buying multiple items worth 5000 INR, you can facilitate installments of 2500-2500 each. This will ensure the purchasing and enhance your sales.
● More Money
If you offer your customers a good payment plan, they can spend more money on the same item. Buyers avoid higher payments, they can get more without disturbing their monthly budget. You can add an installment option and people will pay you a higher price for any product just because paying in whole is not a good option for them.
● More Choices
Having more choices is always attractive for customers, even if they don’t buy they will acknowledge the options you are providing. Giving them some options always gives a statement that you think for their betterment. The non-buyers will still be good for your mouth-to-mouth recommendation. That will give you better reviews.
● Value Of Purchase
Every e-commerce has some loyal customers, but the availability of BNPL will influence the frequency of their purchase. Economically stable customers will not purchase if their cart is too heavy. This way adding the BNPL will ensure a higher frequency of purchases.
● Enhanced Customer Experience
A rich experience for your user will ensure a better conversion rate and loyalty. Creating options is always a great way to make the shopping experience of your customers even better. More products, more ways to shape and more payment options are what will add up to their experience.
How Will It Work For You?
We are now aware of the benefits it offers. So how can we make it work for our e-commerce?
Is It Right For Your E-commerce?
Before jumping to its working you should know if you want it or not. BNPL will make your products visible to customers who don’t own a credit card or who have an issue with their budget. You need to carry out research about the behavior of your customers to know what is best for them. So take your time and select the right option for yourself.
Now if you have decided that you want to go for it, then here we will discuss how can it work for you.
You need to get a payment gateway for your e-commerce.
AFFIRM: This payment gateway is for all business sizes.
KLARNA: This is one of the most popular ones. It has flexible finance options.
PAYPAL: It provides financing to customers who purchased a certain fixed amount.
BREAD: One more flexible finance solution firm which can match your business needs.
The ever-growing and never-stopping world of e-commerce is fond of innovations and changes. Even different payment methods are trending now. Although BNPL isn’t new, it’s recently included in the retail industry. It functions similarly to the loan system but with better and flexible payment options. Customers who are in dilemma can be motivated by this strategy. Add BNPL to your e-commerce and increase the number of buyers.