There are various payment options, including pay-over time. This is whereby a customer takes the product home and then pays for it with fixed instalments. The instalments sum up the original buying price without adding interest. Here are some of the reasons to use a pay-over time solution.
Enables You to Reach Out New Customers
As new customers scroll online looking for an online shop, they will always go to the shop with various payment options. Reaching out to new customers is the aim of every business owner, and you would not want such an opportunity to pass you. That is why you need to offer a pay-over time solution in your business. In most cases, a customer might want to purchase something expensive, but they have less cash. With the pay-over-time solution, you will not lose the customer. When your business attracts more customers, you get more sales, thus increase in profit.
Increases Average Order Value
Average order value is the average amount a customer spends when purchasing from your business. Pay-over time solution enables the customer to order more because it breaks down the bill into budget-friendly instalments. Offering the customers an approach of paying for the goods over a certain period makes them decide on purchasing what they have been dying to have. Pay-over time enables the customer to know how much they owe you without additional interest and thus gives them an easy way to budget on how they will pay for the product.
Reduces Return Rates
Return rates mean no profit to the business. Your aim is to make more sales, thus you should work on reducing return rates. Customers often return goods because they cannot raise the amount at once. With pay-over time, customers will not have to save over time to be able to purchase what they need. In addition, often customers return goods because of the interests set when they pay with instalments. However, with pay over time, there is no interest, making customers opt to take the goods home. With some retailers who have been using pay-over time, they have recorded over a 15% reduction on return rates.
Lowers Carts Abandoned Rates
It is disheartening as a business owner to see that a customer wanted to purchase some products from you but abandoned them after adding them to their cart. Often, customers add goods to the cart with the aim of purchasing. However, after checking the cart, they realize that the goods cost more than what they can raise at that moment. With a pay-over-time solution, the price barrier is not an issue. Studies show that pay-over time has reduced carts abandoned by 11%.
Enhances Customers Shopping Experience
Most people would love to shop without having barriers like lack of enough money. When you offer pay-over time to the customers, you enhance their shopping experience. People who love shopping will shop more, knowing that there is no pressure on payment at that moment of purchase. Pay-over time offers transparent information on how much the customers owe and how much they will have to pay for their monthly instalments. Customers will keep in mind the monthly instalments, and it will not be a surprise to them when the payment is due. With a good shopping experience, customers would recommend more people to your business, thus increasing your sales.
Pay-Over Time Works Internationally
Pay-over time is a payment method practised in many countries. Studies show that it will have taken an upward trend in the business world in the coming years. This is an advantage to you as a business owner. At times, someone from a different state might want to purchase from your business, but it becomes impossible because of the payment options offered. However, with a pay-over-time solution, your business can be able to sell worldwide. Pay-over time works well for various companies, including fashion, furniture, automotive, and home decors.
If you are a business owner, your primary concern is to make your customers satisfied. It would be best if you gave your customers various payment options to settle on what favours them. Utilize pay-over time in your online business, and you will experience increased sales and increased cash flow. Make your customers understand the terms and conditions of pay-over time before selecting it as the payment option.
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