Businesses both online and offline are adopting innovative ways to stay strong amongst the ongoing post-pandemic world. It saw some of the conventional methods come back to life in an organized way. Each and every customer and sales have become more valuable than ever. One such innovative idea is the Buy now Pay later payment option. The outbreak of covid saw many changes in purchasing capacity of people, switching to new payment methods, etc. Many individuals saw Buy Now Pay Later as a reliable option to buy the products they want.

Buy now pay later is a strategy that benefits both the business and its customers. It offers customers a way to pay a small advance amount or sometimes nothing at all. This made many credit card users switch to Buy Now Pay Later.

What is Buy now Pay later?

As the name says it, buy now pay later allows a customer to buy a product and have it delivered to them while having an option to pay for it on a later date. This option is somewhat similar to what stores did earlier. They used to reserve an item to boost customer retention after they paid an installment.

The customer could take that product home once all the payments are made. With the option of buy now pay later, customers now have a convenient alternative to make their payment. They needn’t wait to pay all the installments to access the product. They now have to order and wait for it to reach their doorstep.

Reasons why You Should add Buy now Pay Later Option to Your Ecommerce Site

Here are the reasons why you should integrate the buy now pay later option to your Ecommerce site:

Increase in Sales

Customers are more likely to do purchases when they have an option to spread their payments. Sometimes, customers don’t even have enough money in their account to purchase a product. Buy now pay later option comes to their rescue. This option comes handy for customers who are broke by the end of the month, with paydays on the horizon. This even gives confidence to customers to purchase products that are generally out of their range as they can split their payments into manageable chunks.

Better Credit Solution to The Customers

Buy now pay later option is an affordable finance solution compared to credit cards. It is considered a much safer form of debt compared to other credit options. While credit cards charge people with huge interest rates, buy now pay later lets people pay for their products without paying any installments. If you are worried about your customers not being able to pay you back, relax. Just like credit cards, buy now pay later companies pay you when a transaction is made. It is on them to pursue a customer who is unable to make the payment.

Attracts New Customers

With this option available to people, more and more individuals are choosing this payment option. Customers who are having enough cash to purchase a product are still preferring to use the buy now pay later option. This is mostly because it gets easier to split and spread payments when they aren’t charged interest. This is pushing many customers to look for stores offering their favourite buy now pay later option.

Helps in Building Trust

Buy now pay later option makes customers get a trial period for the products they want to purchase. By purchasing a product through the buy now pay later option, customers can now test your product without committing to purchase them. If they like it they will continue the payment. If not, they can return the product without having to worry about getting a full refund. Providing this option to your customers will make them trust you and the products you offer.

Decrease Cart Abandonment

Most of the customers abandon their carts due to lack of payment options or fear of sharing their personal information. Adding the Buy Now Pay Later option to your site will decrease the rate of cart abandonments. It will also make the checkout process smooth and hassle free for your customers.

You need to keep up with the demands of your customer. As more and more customers are preferring this mode of payment, it is necessary for you to incorporate this to retain your customers and stay on top in the market.

How to Build Ecommerce Website Using Buy Now Pay Later

You must be wondering how and when to incorporate the buy now pay later option to your site ecommerce checkout. Here are some strategies that might help you get out of your confusion.

Sending Emails About Abandoned Carts

According to a survey, customers visit three to four stores before buying any furniture or appliances for their home. They choose the store that offers them the best deal and payment option. Since the cost of home products are generally high, it will be a huge strain on customers’ resources if they have to pay for it in one go. So, customers generally prefer paying for home goods in installments. Apart from this, they also choose a store that offers wide selection in products, interest- free installments and faster delivery.

You as a retailer can use cart abandonment emails to make the buy now pay later option more effective. Customers look for cost-effective ways to redecorate their home spaces. Offering these products on finance will increase your sales and help you in reaching out to more potential buyers. You can partner with any of the companies that offer buy now pay later option and extend interest free credit to your customers without making any sacrifices.

Your customer may not be aware of the new change. So, when a customer abandons his/her cart, you can send them personalised mails making them aware of the buy now pay later option that is available to them. These kinds of mails saw improvement in mail conversion rates and increased revenue. The click through rate for these mails is also high.

Full-Funnel Approach

Apart from furniture, there is another category where customers prefer payments in installments. The demand for electronic appliances is increasing day by day, particularly among the millennials. Compared to old shoppers, millennials prefer more of interest free installments from their retailers. Interest free financing options are especially appealing to these price-sensitive customers. So, how to make yourself visible to an audience who are price-sensitive?

Most of the customers who prioritize price prefer buy now pay later option. So, surfacing the financing options you offer all throughout your site is crucial. You can make use of the full-funnel approach. There should be an option for customers visiting your site to opt for the buy now pay later option anywhere on the site, not just at the checkout.

Offering Omni Channel POS Financing Solution

Buy now pay later option is more effective in driving sales compared to recommendations from friends, advertising. It provides customers with the best online shopping experience. People would like to try on fashion apparel and accessories before making a purchase. The customer’s journey is however not only limited to the online stores.

Their journey goes beyond your ecommerce site. They generally visit the stores in person to take a look at products and try them. With the buy now pay later option, people can now order the products without committing to purchase them. They can continue paying installment for the product if they like it or return it without having to worry about a full refund.

It is always great to offer more options to your customers. It will help them decide better. There are different buy now pay later strategies for different industries. Choose the right strategy for your ecommerce site that will increase your conversions and revenue.

Author Bio:

Allison Janney is a Sales & Marketing Manager at ChargeAfter. She would like to share content on Finance Industry like Point of Sales financing, Buy now Pay later, consumer financing & Ecommerce financing for valuable reader.