Benefits of adding BNPL to your eCommerce Store

by Hankly
27th May, 2022 05:03pm

Have you wondered why your conversion rate is low? Even though you have a lot of traffic coming to your store, great conversion-optimized product pages, and an easy and simple checkout process. Still, your eCommerce store conversion rates are around 2% to 3%.

Do you want to increase your conversion rates?

Yes! Then make sure you follow all the guidelines given in this blog. The most influential part of your customers buying decision is pricing. No matter how good your product or web page copy is if the customer can not afford the product, he is unlikely to purchase it.

According to a study, 87% of online shoppers say that price is the most influential factor in their buying decision. Most of the customers abandon their carts because of excess costs.

For minimising this pause that comes in customers while buying is where BNPL comes into play. BUY NOW PAY LATER can be your secret weapon.

Simply splitting your total cost into small instalments makes it easy for the shopper to purchase products at higher prices — This process can increase your conversion rates drastically.

Here are some of the reasons why you should add BNPL to your Store. Read on. We will show you how BNPL works, why it is so trending in today’s e-commerce market and how it will help you increase your sales.

What is BNPL?

BUY NOW PAY LATER is simply what it sounds like: A customer purchases a product now and pays later. Here’s What happens:

1. Your customer Ads something to their cart

2. When they choose to opt to check out with BNPL, Their Purchase cost will be split into small instalments, usually four to six, Which they can pay over the period of several weeks or months.

3. The customer only pays the first instalment at the time of checkout.

4. The merchant places the order as usual and delivers it out to the customer.

5. Meanwhile, the BNPL provider pays the total cost to the merchant, minus some of the processing fees, making the merchant whole immediately. Over the period of time, the BNPL provider collects all the instalments from the customer.

The biggest advantage of BNPL is that it enables the customers to purchase what they want, at any time they want without worrying about the budget. Customers can easily split the total cost into smaller payments. Meanwhile, the merchant also gets an increase in conversion rates, without any involvement of risk — all because of BNPL.

Benefits of Adding BNPL to Your Ecommerce Store

Higher Conversion Rates

According to studies, the addition of a BNPL to an Ecommerce store leads to an increase of 20 percent in sales. Some companies have even witnessed a 60 percent increase in average checkout value. BNPL is the best way to ensure more sales, rather than resorting to tactics like Discounting.

New Customers

The BNPL can help you attract new customers real fast. Most customers who were previously unable to purchase a product, due to the high pricing will be able to choose the BNPL option to ease their burden. Easing the buying process leads to getting millions of new potential customers. Meaning more sales for you!

Increase in Repeat Purchases

Customers that are aware that the option of BNPL is available on an eCommerce store, and like its experience, are always likely to return for repeat purchases.

Wrapping Up

More and more eCommerce stores are keeping this option in their arsenal to increase their sales. We recommend you also hop in the game to make your customers purchasing experience easy and smooth.

Most Frequently Asked Questions

How does BNPL Work?

How does BNPL work? Basically, BNPL makes money from both the sellers and consumers. Usually, BNPL players make money by charging interest ranging between 10% and 30% on the basis of their credit score, repayment tenure, etc. But, if the amount is repaid on time, no interest is charged.

What does Ecommerce mean?

The Buying and selling of products and services on the internet are called e-commerce or electronic commerce. This can be a primary way of doing business or can be a supplementary part of a business to grow more.

What type of eCommerce website is eBay?

eBay is a Consumer to Consumer Type eCommerce Website. Where a consumer sells products and services to other consumers.

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