E-Commerce Solutions: Benefits of Pay Later Financing in Retail

Online retail isn’t an easy industry. Sure, your business is only a click away for most customers, but so are your competitors. You have to distinguish yourself in some way, but that’s easier said than done. You may sell quality goods, but your customers can only engage with them through photos. It’s hard to know how a home accessory or a piece of art will look from just a snapshot on a website.

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So how else can you make your virtual store appeal to customers? As Melissa Gonzalez, the author of The Pop-Up Paradigm writes, you need to capitalize on the urgency of a purchase. Customers are more likely to buy when they can receive it in a short period. But what if you allowed them to reap the rewards of these purchases without actually having to spend money?

That’s the principle behind the pay later program, one of the e-commerce solutions that’s become popular in recent years. It allows customers to buy a product immediately, but defers payment for two weeks. This gives customers more freedom and control in their purchasing decisions, which in turn makes them likelier to buy from you.

So how do these e-commerce solutions benefit your online store? Read on to learn just a few of these programs’ many advantages.

It’s Easier to Attract Impulse Purchases

Sober second thought is never good for sales. Consumers are most likely to buy a product immediately after you’ve just finished a sales pitch. In these moments, the shopper has heard about a product’s benefits, but hasn’t had time to consider its flaws. This is how impulse purchases work. If you remove the barriers to a product, you’re more likely to sell it.

Pay later programs are the next step in the impulse purchase’s evolution. A visitor on your website may see something they want, but they might back out when it comes time to pay. This often leads to shopping cart abandonment and other inconveniences.

When you defer payment, though, you distance customers from the consequences of their actions. They’ll be more likely to buy something because they won’t feel the immediate effects of their purchases. This allows you to sell to consumers who probably wouldn’t have bought from you before.

Customers Can Buy Big-Ticket Items Sooner

If you sell big-ticket merchandise, you probably don’t make a sale out of the blue very often. Shoppers will often want to compare prices at other retailers, consider the specifications of your products or even wait until a better deal arises. This can make the sales process a long and difficult slog, but the right e-commerce solutions can simplify it.

Consumers may hold off on buying something big until their financial situations allow them to proceed. This moment can come sooner, though, if they don’t have to pay right away. Deferred payment options ensure that you won’t have to wait while prospective customers get their money in order.

You’re Not Responsible When Customers Don’t Pay

Pay later programs suffer from one burning question: what happens if your customers don’t reimburse you after 14 days? Thankfully, you don’t actually have to wait to receive payment.

Processors will usually transfer the money to your account immediately after the purchase. All further interactions will take place between these service providers and buyers’ banks. As a result, you won’t have to worry about getting ripped off any time soon.


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James Newman

James brings over 30 years of experience in the telecommunications and merchant services industry to his role as Client Relations Specialist for BNA Smart Payment Systems. With a focus on sales, marketing and client services, the last 10 years have been spent with BNA. He has completed over 2,000 hours of professional business training, including professional sales, solution selling, conflict resolution, appraisal workshop, strategic marketing, and financial analysis. Outside of work, James is almost constantly reading fiction. In direct contradiction to this rather silent interest, he took up the guitar six years ago and regularly, happily, and shamelessly destroys the peace and quiet of his family home.

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