In today’s world of high-speed internet and fast logistics services, the concept of distance is reduced tremendously. Folks want to remain at their homes and enjoy the shopping spree. An E-commerce website takes care of this desire to shop, sitting at home.
The global sales figure for e-commerce is estimated to reach $4.5 trillion by 2021, and the credit behind this growth goes to eCommerce financing to a great extent. The financing solutions provide the customers with the ability to pay overtime for the items they bought from the companies. This is to fill the gap that exists within the market, especially for high-priced goods and services.
Retailers avail this mode of finance to purchase big-ticket items more accessible, and consumers want a simple & transparent way to make low monthly payments. If you are an e-commerce website owner and looking for ways to offer financial assistance to consumers, this article will help you in the run. It drops some light on various topics of e-commerce financing.
Benefits of e-commerce financing to the customers
There are many benefits of eCommerce financing, whether for customers, retailers, or third-party lenders. The term has many synonyms like Point-to-sale financing, point-to-sale lending, pay-over-time financing, and many more. It increases the power of consumers and improves the revenues of e-commerce companies.
Studies have revealed that 84% of participants appreciate the flexibility to pay overtime for large purchases, and the size of the order increases. Thus, it is safe that these financing activities improve the sales figure by increasing the order value of the customers. It also builds long-term loyalty and chances of repeat purchases.
1. Working on e-commerce financing for retailers
The concept of eCommerce financing is not new. Its debut is made in the market by introducing private label credit cards, which incentivize shoppers around the world with discounts and the ability to buy the goods now and pay later. However, the modern concept of online financing is a bit different and gives shoppers instant access to pay overtime options.
Retailers can quickly integrate the financing on the products pages through the check-out option. Then, the shoppers can check whether they qualify for the financing option. The loan repayment period can range from three to thirty-six months. Once the check-out is done, the retailer gets paid instantly, and financing solutions take off the later part of the payment or non-repayment situation if it arises.
2. Choosing an e-commerce financing partner
There are several financing partners present in the market. Unfortunately, none of them are the same. Their working process differs from each other, starting from the integration policies to the customer service they offer. So choosing a perfect financing partner is a crucial decision for your payment strategy and border retail strategy. This comprehensive checklist will help you choose the best option for your business:
This is all about the implementation policies of the partner or third-party lender company. It talks about the time required and resources that are needed to implement the solution on your website.
- User experience:
This is an essential feature of the financing solution because it needs to be customer-oriented to some extent. The solution needs to ensure a seamless shopping experience for your customers. If the customers are directed away from your website due to the finance option, you might have to reconsider your choice. If you provide different loan terms, it will cater to the customer’s interest.
The quicker you receive a payment from purchase, the better your business will work smoothly. It is better to have clear terms and conditions with your finance partner, like whether the firm will provide you with quick payments, their readiness to take the repayment risk, their collection methods, and more.
The option of customization helps you to change the look, feel, and tone of the solution to match your business. This option comes in handy when there is a need to make alterations to the solutions provided.
This will help you to improve your business. If the solution partners provide you with data available to them, like the payment schedule, repayment range, amount, etc., this will help design the website as per the customer’s needs and wants.
- Customer service:
The customers of a business are often concerned about customer service. They try to avoid doing business with a company providing bad customer support. So, it’s essential to inquire about the customer support of the finance solution, the quality of the customer service they provide, and ongoing services for retailers.
It is a proven fact that eCommerce financing is among the simplest ways to boost sales volume for retailers and build loyalty among the company’s customers. Moreover, it provides many benefits for the sellers, especially when it comes to high-priced items or big-ticket items. So, a firm needs to look into all the financing options and choose the best among them to grow the business.