By Michelle Janse Van Rensburg, entrepreneur and founder of Nimacc Business Lounge
As an operator of a retail or e-commerce store, the idea of increasing your sales conversion rate by 20% or your Average Order Value (AOV) by between 50% and 80% is pretty compelling… The upfront cash flow benefit of expanding your sales basket makes this prospect even more attractive.
Industry research says that merchants who opt to incorporate Buy-Now-Pay-Later (BNPL) into their offering are seeing these kinds of numbers.
This is particularly relevant as global players like Amazon, Shein and Temu are asking local retailers and e-commerce providers to up their game.
Incorporating Buy-Now-Pay-Later (BNPL) into a retailer's offerings not only increases sales conversion rates and AOVs but also significantly expands their clientele by appealing to a broader audience and ultimately capturing a larger market share. This boosts immediate sales and fosters long-term customer loyalty by enhancing the experience of the consumer with convenience and flexibility.
This strategic adaptation allows retailers to thrive in a competitive market, ensuring they not only stay ahead of the growth curve, but also consistently drive sustainable growth.
Traditionally, businesses needed to try and balance enhancing customer experience with trying to maintain low costs to ensure favourable margins. It is a constant balancing act between lowering friction around the buying decision, but still allowing you the ability to integrate payment tools into your bricks and mortar and e-commerce offerings. Technology has changed this completely, allowing the business owner to provide a cash-flow smoothing tool for consumers while integrating proven payment systems into their business for a seamless operation.