And how they can help increase your Average Order Value (AOV) and more.
Pay later integrations and solutions can help eCommerce businesses in a number of different ways. From reducing abandoned carts to increasing average order value (AOV) and improving conversion rates on larger value items.
Pay later solutions provide payment flexibility for consumers. This comes in various guises; buy now pay later (BNPL), financing solutions, store or gift cards, payment plans, and more.
Offering different payment options can help reduce abandoned cart rates. Solutions that require no payment up front from the customer or provide the ability to spread cost can play a convincing role in securing that sale.
Transactions might also see higher AOV, as the larger more expensive items become more accessible to customers. Another way to increase your AOV is to offer free shipping over a certain value, i.e. spend £50 and enjoy free shipping options.
⇒ Buy Now, Pay Later (BNPL) platforms: BNPL platforms such as Afterpay, Klarna, and Affirm offer consumers the option to split the cost of their purchase into several smaller payments or instalments, usually without any interest being applied. These platforms can normally be easily integrated into an eCommerce store, helping to increase the number of conversions by providing choice to the customer and also has shown to increase average order value.
⇒ Financing Solutions: Financing providers such as PayPal Credit and Square Capital can help to increase sales by giving customers the ability to finance their purchase. This can be particularly useful for larger ticket items, such as appliances, furniture, and electronic goods.
⇒ Subscription services: Platforms such as Recurly, Zuora, and Chargebee allow sellers to offer a subscription-based payment option for a recurring service or product.
⇒ Store Credit or Gift Cards: A store credit or gift card, such as Shopify’s Gift Card or Yotpo’s Loyalty Program, can be a good way to incentivise customers to make a purchase.
⇒ Layaway and Payment Plan: Depending on your financing capabilities and status, you may also be able to offer your own layaway plans or payment plans that allow customers to make a purchase over time.
All of the above methods offer different way for customers to pay and often can increase the average order value and the conversion rate. Additionally, it allows for the customers to make purchases that they might not have been able to do otherwise. As always, it’s important to keep in mind the industry, the target audience and the type of products and services you offer before deciding on any solution, to make sure it aligns with your business goals.