The word itself explains everything. “Buy now pay later” literally allows consumers to buy a product and deliver it while delaying payment until the next day.
This option of buy now pay later furniture is very similar to the old-fashioned old school system, where stores allow consumers to reserve an item while paying for it in installments. Once all payments have been made, they are able to take the item home.
However now, buy now pay later furniture offers even better alternatives to consumers. No need to wait until the item is paid in full – buyers should wait for their item as long as it takes to get to their door.
Maybe you’ve seen the purchase now, paid for later payment options at checkouts at most places you buy.
Unlike layaways, buyers do not use purchases now, they pay later to pay for expensive purchases. They use the payment method to purchase all kinds of items, from everyday necessities such as clothing and homeware to large items such as fitness equipment.
While there are several options for buying now and paying later, they all offer the same thing. The buyer proceeds with payment in the form of several installments (usually two to four or four) or full within 14 to 30 days. Failure to pay will result in fee, but not always.
Buy now pay later furniture is very popular because it gives consumers an easy way to get credit. Unlike credit cards, which require users to provide more information and pass difficult credit checks, buy now, pay later providers ask for the buyer’s name, email address, date of birth and billing address.
Reasons Why e-commerce sites Offer Buy Now, Pay Later Furniture
Buy now, pay later furniture is a hot new ecommerce practice, and many store owners understand that customers love it. But what is the benefit of offering BNPL to customers, and what does it offer you?
1.) Improved customer quality for life
Your loyal customers are likely to buy with you regularly, no matter what payment methods you have to offer, but how much they spend with you is not guaranteed. These customers may end up purchasing their favorites, but the availability of Buy Now Pay Later furniture may affect the frequency or value of their purchases.
Imagine that ordinary customers would buy furniture from you regardless of the payment method without the risk of being left in the trailer? Think again. Even people who are in a comfortable financial situation can sometimes come to the cart, see that they have expensive furniture items which would make them shy away from buying.
However, with – buy now, pay later furniture, opportunities increase the odds of customers buying expensive furniture. Of the customers that were surveyed who used BNPL, 31% said they would not buy at all without the ability to pay later.
2.) Extended conversions
If you’ve ever loaded your cart with great quality furniture on your favorite eCommerce site to get out and about for a price, you’re not alone. Many customers are happy to buy new products until they are directly concerned with how much they will pay – which leads to leaving the cart.
While Buy Now Pay Later furniture operates in the same way as credit cards without any real savings, the psychology after a later payment with a single purchase makes consumers more willing to purchase.
On average, about two-thirds of the shopping cart is abandoned, the equivalent of most lost sales in many ecommerce companies. However, stores that add Buy Now Pay Later furniture options to the exit screen see a significant drop in abandoning of the cart, leading to a rise in profits at no significant cost.
One study found that 48% of consumers would allow BNPL availability to influence purchasing decisions, meaning that about half of your customers could be somehow changed by the availability of your payment option.
3.) The best customer experiences
Why is it important to improve your customer experience? Creating a good customer experience builds trust and encourages repeat business.
Many shopping methods, many payment methods, and many products to choose from are all good things from a customer perspective. Giving customers the flexibility to buy and pay the way they want means increased loyalty and, ultimately, sales.
An estimated 6% of carts are abandoned due to inadequate payment options, which means a lot about how customers value the various payment methods.
4.) Young buyers opt for Buy Now, Pay Later furniture
Buy now, pay later furniture is rapidly in popularity with young consumers driving to this trend. Young generations are less likely to trust traditional institutions, but they still need simpler payment methods over time. Buy Now Pay Later furniture offers these payment methods, which means they become something customers expect everywhere.
5.) Consumers are ditching their credit cards for purchasing now pay later furniture options
Credit cards are always a popular transaction, but relying on them as a primary payment method for business is a good idea only if all your customers have one. The number of credit card holders in your target audience may be much lower than you expect.
Many consumers are trying to avoid the flexible debt that can be incurred by these payment methods. Millennials are notorious for debt and debt consolidation, with one study finding that Millennials own fewer credit cards and more independent credit cards than their Gen X counterparts. In fact, only 33% of Millennials have a credit card, and many prefer to use their bank cards to make purchases. Always. Buy now, pay later is a good option for those who do not have access to the credit line, or do not want to rely solely on it.
The payment process is an integral part of any eCommerce site and it is very important to provide multiple payment methods for customers. Choosing the best payment methods for customers who have made a seamless transaction is essential to the success of an eCommerce business. ‘Buy now, pay for the later furniture’ makes use of one of the fastest growing payment methods. Hopefully, you now know why it is so popular and how its benefits ecommerce business.