What is BNPL?
Buy now pay later schemes or (BNPL) have recently taken the e-commerce world by storm. These schemes have in the past been offered as alternatives to bank loans by retailers as part of loyalty or finance schemes that often charge eye watering amounts of interest. However, the new BNPL platforms such as Klarna , Clearpay etc offer a cheaper and much more attractive alternative for your consumer.
Ideal for your target market?
The prospect of 'Buy Now, Pay Later' appeals to many younger consumers who can’t wait until pay day, allowing them to easily spread the cost of purchases over a certain number of weeks or months without paying interest. These platforms perform an initial soft credit check that doesn’t affect the customers credit score. With argued impacts such as single-handedly causing the death of credit card, we can be pretty sure that BNPL isn't just another trend- it's here to stay. Many of our eCommerce customers have clued up to this fact, too. Simply scroll below to see how cosmetics brand, AllEven have integrated Clearpay within their checkout.
Benefits of BNPL
• Have a luxury product or multiple bundle offers? This financial tool is perfect for tapping into a larger customer demographic who wouldn’t normally be able to afford a high-end product purchase in one swoop.
• Boost your sales. Companies like Klarna claim to increase your online orders by 30%, increase your customer spend by 34% and secure a 80% conversion rate on mobile- a cosmic boost above your competitors!
• Keep competitive. 1000’s of famous online retailers have already integrated with BNPL. Become an early adopter now, so not to fall behind!
• Most BNPL providers handle all complaints, refunds and returns. Once an unavoidable, tedious part of running an eCommerce business, companies like Klarna, now allow you to free up spare time while reducing admin costs.
Most BNPL have easy integration with marketplace software such as Shopify, WooCommerce etc. With the below statistics showing that brands having these alternative payment options are often their first choice, can you really afford to be missing out?
59% of people aged between 18-35 felt they were encouraged to spend more money with BNPL schemes.
Advertising this payment method on your website and checkout could be the difference between a customer making a purchase, or a customer bouncing to a competitor. These types of platforms are ideal for a whole host of industries, such as fashion, homeware, cosmetic, fitness retailers and more.
70% of people aged 18-34 had used a BNPL plan to make purchases.
Alongside the use of these tools, companies like Klarna have been very successful in marketing themselves as a fun, new and strong modern brand and can be often seen partnering with popular brands, influencers and sponsoring major events. When customers see the Klarna logo on an ecommerce site, they instantly know what they’re getting: trusted eCommerce service
Integrate your entire supply chain
Congrats! You've taken the steps to secure your customer's purchase. Now it's time to ensure safe storage, speedy delivery and an excellent unboxing experience. As a trusted fulfilment provider for over 300 eCommerce brands, fulfilmentcrowd integrate with all major eCommerce platforms, including those that also host BNPL plug-ins. To integrate your entire supply chain and optimise your business for premium customer service, while saving further time, why not take a look at our integrations, and enquire for a more detailed quote via our free cost calculator.
by Cameron Mitchell on 26/05/2020