5 Top Reasons for the Sellers to offer Buy Now and Pay Later

Traditionally, a customer pays for his purchase and receives the product or services in exchange. However, with the increasing competition and adverse market scenario fueled by unforeseen situations such as COVID - 19 pandemic, businesses need to push their traditional approach to explore newer attractive ways to stay intact with the customers. Implementing user-friendly methodologies and strategies enables businesses to retain their market shares even in unfavorable situations. One of the most common and prevalent strategies to strengthen ties with customers is “buy now, pay later (BNPL). Here you will know the top 5 reasons to offer the Buy Now and Pay Later option to the customers.

Buy Now and Pay Later - the Concept

Isn’t it attractive if, as a consumer, you have the chance to buy your favorite things right away without paying any money immediately? BNPL is a point-of-sale selling technique that allows customers to buy the desired products in installments. From a business point-of-view, the facility to pay later boosts sales by attracting customers to shop on whims. It also gives a beneficial payment mode for people who cannot afford to pay a hefty sum at once. The concept is more of a reward or appreciation of business association with businesses. Therefore, it is the next big thing in the eCommerce world today.

How Does Buy Now and Pay Later Work?

This marketing formula works on a simple logic of enticing customers to buy by making them feel rewarded for their prompt actions. To avail of such offers, customers need to complete the transaction, and the final dispersal amount will be divided into installment payments that need to be paid overtime. These days, businesses offer their financing so that their inventory can move out quickly.

Is “Buy Now and Pay Later” Right for You?

Here are some valid points to justify whether Buy Now and Pay Later is right for you or not

Conversion Rate

According to statistics, there has been a steady rise in BNPL purchases since 2019, since the pandemic outbreak. Such techniques allow customers to purchase goods and services even during straining financial situations. It is the surest success mantra for the promotional discounts being offered by online businesses.

Catering to Segmented Audiences

BNPL schemes make shopping more affordable and more accessible to even low-income people to afford to purchase their desired products and services.

Easy and Affordable Scheme

It is primarily a great source to buy high-value products and services such as electronic devices, cars, jewelry, and household items. BNPL schemes are more accessible and affordable by allowing merchants to sell products with a higher conversion rate quickly.

Average Order Value

Average Order Value(AOV) is calculated by calculating the average amount a customer pays when deciding to buy the products or services. According to reports, many online shops have registered a whopping 130% increase in AOV after activating this scheme.

Enhanced Customer Experience

BNPL is a great way to motivate and encourage customers to buy. They feel more empowered when they realize that they can control the outflow of money with an easy installation system.

The Final Verdict

BNPL is the latest marketing and selling technique that has a bright future with the development of the eCommerce market. However, transparency and hidden charges are potential challenges that might limit its popularity and success. Therefore, online companies need to choose customer-friendly and beneficial plans to entice customers. The need is to strengthen the customer-seller bond via creating a ‘win-win’ opportunity for both.