Thriving in a Challenging Economy: Boost Your eCommerce Revenue with Buy Now, Pay Later
As an online creator, selling products, goods, or services in today’s economy can be an uphill battle. Figuring out the right pricing and positioning is critical, but how do you do so without eating into your profit margins? In this article, we will explore the power of Buy Now, Pay Later (BNPL) services as a solution to this dilemma, drawing on insights from The BNPL Solution: Boost Your Order Values and Conversions in a Challenging Economy – Without the Risk of Payment Plans, a white paper by the SamCart team.
Bottom Line: This article offers invaluable insights for eCommerce business owners and managers on how to leverage Buy Now, Pay Later services to boost conversions, improve average order value, and navigate the challenges of a tough economy.
eCommerce in the face of economic recession
Although not in an official recession, 65% of economists polled by Bloomberg expect the US to fall into one this year. With consumers already cutting back on spending due to rising inflation and interest rates, online creators are left wondering how to price their offerings without jeopardizing profits. High-ticket products are often the first to scare potential customers away during uncertain times, and these are the sales that offer the biggest opportunities for profit.
The Buy Now, Pay Later revolution
BNPL allows customers to split the total cost of their orders into smaller, interest-free payments over time, with companies like Klarna, Afterpay, and Affirm taking on the risk of underwriting and collections. For sellers, BNPL can lead to:
- A 40% increase in average order value
- A 30% improvement in cart conversions
- A 36% increase in purchase frequency
From the customer’s perspective, BNPL:
- Makes high-ticket purchases seem more affordable>,
- Allows immediate access to product offerings without having to pay the full cost upfront.
SamCart now offers BNPL to its customers, enabling creators to leverage these services to their advantage.
BNPL and SamCart
After a successful beta test, BNPL is now available to SamCart customers using SamPay as their payment processor. Three key benefits of utilizing BNPL services on SamCart include:
- Immediate payment in full to the creator, reducing the risk of customers defaulting on their payments
- Increased likelihood of customers spending more, given the perception of affordability
- BNPL’s flexibility to work with a wide range of product prices
Having BNPL as a payment option at checkout can give your eCommerce business a significant competitive edge owing to its alignment with consumer behavior.
Learn more with The BNPL Solution white paper and a free SamCart trial
Dive deeper into how eCommerce creators can navigate economic uncertainty and capitalize on BNPL services by downloading The BNPL Solution white paper. And when you’re ready to put these learnings into practice, give BNPL and SamCart a spin with a 7-day free trial.