BNPL options are a great way to entice customers to buy. They can help you sell more products and increase your revenue.
The BNPL options are an option for the customer to buy a product from your store at a discounted price or with free shipping. You should consider offering these BNPL options as they will create more sales for your store.
BNPL options are not just limited to physical products but also digital products like ebooks, software, and web services.
For the past few years, buy now, pay later (BNPL) has been progressively gaining steam over the last few years. Then came COVID-19, and, as though so many things in the e-commerce industry, BNPL went from a passing fad to a long-term consumer preference.
Customers can choose to pay throughout time with a BNPL provider at purchase, which is how the flexible financing solution works. This breaks down the whole cost of their transaction into a few (typically four to six) installments spread out over a few weeks or months. They make the initial payment at checkout, then click “Pay Now” to complete their order.
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While the buyer only pays the first installment, the BNPL supplier covers the rest of the purchase, ensuring that the merchant is quickly made whole. The merchant then prepares and dispatches the order in the same way as he or she would any other.
For consumers, BNPL allows them to spread out the expense of purchase while still receiving it as quickly as they’ve just paid in full upfront. It provides merchants with even more benefits, such as the opportunity to attract more clients, make more purchases, and increase their Average Order Value (AOV), except without the risk.
I mean, what’s not to like? And that’s only the start. Continue reading to learn more about the several advantages BNPL may provide your e-commerce store.
Benefits of BNPL
More purchases are made as a result of increased loyalty
While greater conversion is enticing in and of itself, the advantages of BNPL do not end there. According to research, integrating BNPL, for example, lay-buy improves consumer loyalty and repeat purchases. Returning customer rates have increased by an average of 80% for Zip partner businesses.
One out of every three BNPL customers utilizes it at least once a month, and 17% use it once a week or more. BNPL creates loyalty, to both the services and to the brands that provide it, because of its ease, transparency, and flexibility.
Repeat clients are highly valuable to any retail firm, and we don’t have to tell you that. This group converts at a much greater rate has a three-fold higher AOV than first-time buyers and buys more frequently.
Loyalty programs are one of the best ways to increase customer retention and the number of purchases.
As an example, consider a company that offers a loyalty program where customers can earn points for every purchase. If they accumulate enough points, they can redeem them for discounts on future purchases.
When more purchases are made as a result of increased loyalty, it is important to have effective communication between the company and its customers. This is when AI comes in handy. It is able to deliver relevant content at scale and provide insights about their preferences without compromising their privacy or security.
In an ever-changing retail landscape, convenience is crucial.
When it comes to change, today’s customers want convenience. It’s not enough for merchants to provide what customers want in a shopping experience; they must also make it simple. If BNPL wasn’t a choice at checkout, a third of BNPL customers claimed they would have left their cart altogether.
Credit cards feature difficult-to-understand conditions, such as unexpected fees and variable interest rates. Shoppers are becoming more hesitant and skeptical of them.
With the rise of online shopping, brick-and-mortar stores are struggling to stay relevant. In order to combat this, retailers have introduced a variety of new services and products to keep their customers coming back.
The introduction of self-checkout kiosks has led to an increase in revenue for retailers by eliminating the need for human clerks. This has also allowed retailers to focus on other areas of their business such as customer service and product development.
As a result, convenience is becoming more important than ever before in retail and it is crucial that retailers keep up with these changes or risk losing out on revenue.
Conversion of BNPL Lifts and AOV
From the ease it provides consumers to the omnichannel assistance it provides retailers, BNPL does a lot to drive the checkout experience forward. What does all of this mean in terms of return on investment? As per the data, everything is fine.
Both e-commerce sales and AOV are boosted by BNPL. The typical Zip partner merchant sees a 20% increase in conversions and topline revenues, as well as a 60% rise in average order value. According to a CNBC Christmas report, half of the shoppers (48%) say BNPL allows them to purchase 10% to 20% more than they could with a credit card alone. According to a Forbes poll, that number might be as much as 40%.