What Is Buy Now, Pay Later?
As an eCommerce retailer, tools like Sellbrite help you manage and grow your business by simplifying multichannel selling. But to truly enhance the shopping experience and drive more sales, offering payment options like Buy Now, Pay Later (BNPL) is a must. BNPL allows customers to purchase items now and pay over time in installments, making it an increasingly popular choice for shoppers across all age groups.
How Does It Work?
The BNPL process is straightforward:
Choose BNPL at Checkout: Shoppers select BNPL as their payment method during checkout.
Agree to Terms: The provider specifies the payment schedule, usually splitting the total into equal installments.
Soft Credit Check: A quick credit check is performed, typically with no impact on credit scores.
Start Payments: Customers begin paying over time, either through the provider’s app or by automated deductions.
The Benefits of Buy Now, Pay Later
For both customers and merchants, BNPL delivers unique advantages:
For Shoppers
- Shoppers can purchase higher-priced items without paying upfront.
- Many BNPL plans have no interest or fees, making them an affordable alternative to credit cards.
- Payments are spread out over time, easing the strain on monthly budgets.
For Merchants
- BNPL encourages shoppers to spend more, with some merchants reporting up to a 50% increase in AOV.
- Offering flexible payment options addresses affordability concerns, leading to more completed checkouts and less cart abandonment.
- Merchants receive full payment upfront from BNPL providers, even as customers pay in installments.
- BNPL resonates with Millennials and Gen Z, who often prefer alternatives to traditional credit cards.
Which Provider Should You Use?
When choosing a BNPL provider, consider their terms, compatibility with your business, and the regions they serve. Here are some leading BNPL options to explore:
Affirm: Known for clear terms and suitability for high-value items.
Afterpay: Specializes in interest-free, smaller installment plans, popular in fashion and retail.
Klarna: Offers flexible payment options, including pay-in-4 and financing for larger purchases.
PayPal Pay Later: A seamless solution for businesses already using PayPal.
Shop Pay Installments: Exclusive to Shopify merchants, boosting AOV and lowering abandoned carts.
Adding Buy Now, Pay Later to your payment options can transform your eCommerce business. With its ability to increase average order value, reduce cart abandonment, and attract younger shoppers, BNPL is a powerful tool for growth. When paired with Sellbrite’s inventory and order management capabilities, you’ll be better equipped to streamline your operations while offering a payment solution that resonates with today’s customers
