Buy Now Pay Later (BNPL) is one of the fastest-growing payment methods in the e-commerce industry. According to an estimate by 2030 the market size of BNPL will increase by thirty billion US Dollars.
Buy Now Pay Later or BNPL is a payment option that provides users an opportunity to make payments in installments. It is a point on sale agreement financing option. The best part about the buy now pay later financing option is that consumers can purchase the product right away but don’t have to bear the burden of a one-time payment. Several BNPL options allow the customers to make one upfront payment and the rest through a pre-determined number of payments.
What makes BNPL favorable and attractive for consumers is that these payments are interest-free and without any added charges if paid timely.
As the dropshipping business market is expanding so does the variety of payment options. BNPL is also one of those payment options that make the online shopping experience more convenient for both customers and business owners.
Let’s explore how BNPL can boost sales and attract more customers.
Examples of Successful BNPL Offers
According to an estimate, the BNPL industry will reach up to six hundred and eighty billion dollars in terms of the transaction by the year 2025. More consumers are opting for BNPL because of its increasing popularity and convenience. The following examples depict how BNPL implementation leads to the success of these businesses:
Charlotte Tilbury is a makeup brand popular for selling expensive and high-end products. Charlotte Tilbury targets consumers within the age bracket of 16-24. Consumers within this age bracket cannot pay big amounts easily.
Therefore, the brand has added the BNPL option. Through the integration of Klarna Charlotte Tilbury provides an option to its customers to pay in installments. Keep in mind that the installments are interest fees and without any extra fees.
Moreover, the Klarna logo is placed just under the checkout button on the product page. This keeps the customers informed about the ease of payment facility they have through BNPL.
Canyon Bicycles is a high-ticket bicycle selling brand with consumers above the age of 35. Even the simple bicycles at Canyon cost hundreds of dollars. Although the brand targets such an age group that is expected to be financially secure. Yet some people enjoy paying through a payment plan.
Canyon Bicycles offer a BNPL option at check out through Splitit. Therefore, consumers who want to have the privilege of these high-end bicycles but cannot pay at once can now pay in installments. This strategy has let Canyon Bicycles increase its target audience and sales. The reason is that previously only consumers who could afford could buy the bicycles. BNPL facilitates the inclusion of consumers who cannot pay the whole price at once.
How to Make the Most of BNPL Offers
Buy now pay later offers are beneficial for both consumers and business owners. It is through BNPL that online shoppers can enjoy the immediate gratification of purchasing a product through easy-to-understand terms of payments. BNPL integration makes the whole shopping experience more convenient for both consumers and business owners alike.
Not only at the B2C level but BNPL integration is also possible at B2B level. How? The dropshipping business model involves the online business, the supplier, and the consumers. A lot of dropshipping suppliers have warehouses and subsidiaries in the USA. BNPL payment option can be used between online retailers and dropshipping suppliers in the USA.
Some online dropshipping business owners want to purchase inventory beforehand to streamline the supply chain process. Such businesses can pay the cost of inventory to dropshipping suppliers in easy installments. BNPL payment methods such as PayPal, Stripe, Klarna, etc. are all safe and user-friendly.
Award-winning fulfillment and dropshipping companies such as Shipbear also provide BNPL options to their customers. The process is very smooth and easy. Not only does Shipbear allows its customers to get a free quote through its website. But also facilitates the process of paying in installments.
The process runs such that when a customer or client orders products or fulfillment services to Shipbear part of the payment is made on the spot. The rest of the payment can be done after fulfillment of the order.
For Premium Customers Shipbear offers a credit buffer option. This makes sure that the supply chain runs in a streamlined manner. This is the reason why businesses from across the world have put their trust in Shipbear’s dropshipping and fulfillment services.
How BNPL Helps Businesses Boost Their Sales
BNPL enables businesses to boost their sales and attract more customers. The reason is not only because the payment is in installments. Also, because consumers get peace of mind that they have not made the full payment yet still they can have the product.
BNPL helps a business by boosting its sales. But how is it possible? Well, it is possible because BNPL attracts more customers.
Customers love the idea of getting instant access to the product with an instant upfront payment. Thus, if the product price exceeds the purchasing power of the customer even the customer can buy it by paying in installments. Therefore, BNPL makes expensive items accessible to consumers with limited purchasing power.
Most customers cannot make purchases through credit cards. This might be possible because their credit limit has been exceeded. Another reason is the risk that the credit card company might charge them extra if the payment is not made on time. Therefore, brands lose such customers to such financing issues.
BNPL solves this problem for customers by providing them with a financing opportunity that is free from extra charges. Moreover, BNPL provides a period of two to three months to pay the installments. This makes the whole purchasing process smooth. Also, it encourages more customers to purchase the products.
BNPL helps customers buy products at a payment plan that best suits their budget and cash inflows. Similarly, Shipbear provides easy payment options to its customers. Especially for businesses with a limited capital and credit limit, Shipbear facilitates their payments. Businesses need to make a small upfront payment and the later payment can be done in installments.
Shipbear makes sure that customers spend maximum time scaling their business by keeping the stress of payments aside. Therefore, when it comes to business payments, Shipbear is the most trustworthy partner. Click here to know more about Shipbear’s customer-friendly services and payment options!
BNPL being the most widely used payment option in the e-commerce industry has a variety of advantages. It is beneficial for both the consumers and the business owners. BNPL provides a steady income flow to business owners and relieves the stress of one-time hefty payment from the consumers. The trend of BNPL is expanding across the world and with each passing day, more customers and businesses are becoming part of this ecosystem.