As the online retail sector continues to boom post COVID lockdowns, ‘buy now, pay later’ services allow small business owners to drive sales and growth
The new-age version of lay-by, buy now pay later (BNPL) services like Zip, allow shoppers to pay for products through instalments and receive them straight away. Partnering with Zip can help a small business online to connect with shoppers worldwide and drive sales.
For a small business, the major benefits of utilising BNPL services online include attracting new customers and drawing from a much larger pool of shoppers. The business is paid upfront, with the BNPL provider taking on the risk. For a small business, minimising the risks of fraud and late customer repayments can help stimulate growth.
Flexible payment options also help small businesses drive customer engagement and make customers out of browsers. According to reports, about 75 per cent of all virtual ‘shopping carts’ are abandoned prior to purchase. Buy now pay later services, like Zip, have been proven to boost conversion rates.
Giving customers access to BNPL gives consumers more choice. A small business often has fewer resources than their larger competitors to draw upon, but utilising BNPL services can help them level the playing field.
BNPL options resonate with consumers’ financial needs, which can give a small business a boost. By offering flexible payment options, customers feeling the pinch can pay off their purchases over time and small businesses can stay afloat with a steady revenue stream.
Partnering with Zip can also help a small business online to drive incremental sales, with an increase in cart conversion. Retailers report an increase in the average order value when customers use BNPL services, as it puts items within financial reach for more customers.
Creating a seamless customer experience, BNPL services can help create customer loyalty, boosting future sales. Considered an essential service offering by many consumers, BNPL is correlated with a range of highly desirable shopper loyalty related measures.
In addition to using BNPL services to accept payments from customers, small businesses can use Zip Business to pay expenses, with flexible repayment options available as well as access unsecured business loans, allowing them to fund business growth.