In today’s business environment, business owners are employing different strategies to increase sales volume. Particularly, social commerce merchants are using the Buy Now Pay Later (BNPL) to increase sales. It’s not uncommon for customers not to be in a position to buy for goods upon purchase. That’s why consumer financing, point of sale financing, and online financing are popular ways of encouraging sales. The big question is how BNPL helps to boost social commerce sales. Here is how this is possible:
It Diversifies Payment Options
BNPL diversifies payment options for social commerce. Since customers have the option of paying for purchases later, this gives merchants the opportunity to accept different payment options. Customers are able to pay using payment methods that are convenient to them. A merchant payment is a system of payment that a merchant uses to receive payment from customers.
When payment options are diverse, the more social commerce sales increase. Merchants welcome BNPL like ChargeAfter.com because they know many customers like the idea. Here is a list of the payment options that merchants offer:
Mobile payments offer a quick way for customers to buy products on the social commerce platform. In most cases, this type of payment happens in countries where the level of banking penetration is low.
Bank transfers allow customers to pay for purchases through internet banking. When paying for online purchases, bank transfers ensure that the funds of customers are safe. For every transaction made through bank transfer, there has to be authentication.
In this type of transaction, online purchases are paid directly from the bank accounts of customers. Essentially, customers make requests to their banks to have the payments made on their behalf.
Converting Passive Customers to Active Ones
Passive customers don’t translate to sales. Only active customers have the capacity to increase that sales volume of social commerce. The online market space is competitive. That’s why online merchants use BNPL to encourage customers to make purchases. One of the reasons that contribute to customers being passive is their inability to buy the products or services they come across. In order to solve this problem, e-commerce traders employ POS financing to motivate customers to go ahead and buy their desired products. Additionally, BNPL offers customers the chance of buying things they wouldn’t have bought. This turns them from potential customers to actins ones.
It Boosts Customer Loyalty
The capacity of BNPL to boost customer loyalty increases sales significantly. This payment model helps to build a strong relationship with customers. They keep coming back to a store to buy more. This is because the payment plan is good and enticing. It gives them flexibility. According to Retail Express, 90% of BNPL purchases are from customers returning after previous purchases. If you’re a social commerce merchant, you can rely on BNPL to boost customer loyalty. On the long-term, this will lead to increased sales.
It Drives Customers’ Instant Gratification
BNPL contributes to instant gratification. This is a sure way of increasing your online store’s sales ratio. Since there is the option of paying later for the goods customers buy, they get motivated to purchase more. There’re able to get whatever they want and satisfy their immediate needs. They don’t have to go back to their savings to pay for purchases. Instead, they can get what they want and pay for it later. The outcome of this is that social commerce merchants witness an evidence of their sales increasing.
It Reduces Abandoned Purchases
Abandoned purchases are not a good business sign for online business owners. As Retail Express puts it, 75% of shopping carts don’t reach the purchase stage. In order to solve this setback, BNPL comes into play. It’s an encouragement for a shopper to get what they need and pay for it later. Some shoppers fail to make purchases because of a lack of money at the time of purchase. So, with the opportunity to pay later, they find it convenient to make purchases. The capacity to reduce abandoned purchases goes a long way to boost social commerce sales.
The bottom line is that BNPL is a great idea for increasing your business’ sales ratio. It’s a proven way of reaching out to potential customers and encouraging them to buy more.