The Benefits of Buy Now Pay Later for Ecommerce Shops

Online shopping has become an important part of many people’s lives. In fact, a report published by Statista indicates that the number of online shoppers in the U.S. is expected to increase by around 12 percent between 2021 and 2022. This means that e-commerce will continue to grow as a channel for brands and retailers to connect with their target audience and sell their products. However, it can be difficult for some consumers to afford items they want from trusted sellers online. This is why buy now pay later (BNPL) benefits programs are becoming increasingly popular for shoppers who want to make purchases but might not have the cash readily available at the time of purchase or may not be able to meet other financial obligations precluding them from making such purchases at that time. With so many different buy now pay later programs out there, take a look below at some examples on how these programs can benefit your business:

Consumers Are More Likely to Buy When They Can Pay Later

Buy now pay later programs allow consumers to make a purchase immediately without having to worry about having the money at hand. This may put less pressure on consumers who are trying to make ends meet or who are having difficulties managing their current finances. As a result, these programs can be an important factor in boosting sales volume and encouraging customers to make purchases they might not otherwise have done if they expected to pay cash at the time of purchase.

Shoppers Are Less Likely to Return Items With No Interest

Some shoppers try to return merchandise they’ve purchased. They may do this because they purchased the item using a credit card and the card issuer has a “return protection” policy that allows the buyer to receive a refund for the product purchase. However, if the item was purchased with a cash payment, the shopper might not have the same ability to return it if it’s not up to the standard expected. 

This can be frustrating for both the buyer and the seller. With a buy now pay later program, there is less of a chance that customers will return an item since they don’t have to tie up their cash in the purchase. This can help you save money in the long run by avoiding unnecessary returns and providing you with a better experience as a seller.

Shop Now, Pay Later Options Help Build Customer Loyalty

Buy now pay later programs can help build customer loyalty in a number of ways. First, they can make it easier for shoppers to make purchases without having to worry about finding cash on the spot. This can help to reduce the amount of customers who might otherwise walk away from the checkout line due to lack of funds. Furthermore, if you offer these programs as an extension of an existing credit card, you may be able to increase the amount of available credit on these cards. This can help to expand the amount of goods customers can buy overall and boost their loyalty to your brand.

Offering a BNP Program Supports Brand Awareness

Credit card companies have long been promoting their cards through television ads featuring well-known entertainers and sports personalities. Credit cards are the primary means by which retailers extend financing and allow consumers to “buy now and pay later.” But with the increasing popularity of buy now pay later programs, brands can also promote their products through these advertisements. You can use this opportunity to further promote your brand and show that you are a trusted business that customers can rely on when they need to make a purchase but don’t have the cash readily available.

Conclusion

Ultimately, buy now pay later programs give consumers an opportunity to make purchases that they might not be able to afford with cash at the time of purchase. These programs help to ensure that customers can make the purchases they want without having to worry about being turned down for a loan due to their financial situation. However, as a retailer, you also want to make sure that you are offering these types of programs responsibly to ensure that you can collect on the money that customers owe you when the time comes. With a little research and planning, you can profit greatly from the "buy now, pay later" approach, thereby benefiting your business and your customers.

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