There are many benefits that a B2B seller can reap by integrating Buy Now, Pay Later (BNPL) into their online store. The ability to assist sales and income growth is perhaps the most evident benefit. But there are other reasons BNPL is worth considering, such as its ability to improve customer satisfaction and loyalty and reduce checkout abandonment rates. So if you’re thinking of ways to improve your online store, it’s certainly worth exploring the option of implementing BNPL.
What is BNPL, And How Does It Work For Online Sellers?
Buy Now, Pay Later (BNPL) is a type of short-term financing that allows customers to make purchases and defer payments for a while. The customer pays back the amount borrowed over time in instalments they select when they make the transaction. There are many different BNPL providers, each with its terms and conditions. Customers can typically choose to defer payments anytime from a few weeks to a few months.
On the other end of the table are online sellers, and BNPL providers can act as a bridge between themselves and their buyers. When a buyer chooses to defer payment, the seller is not affected because the BNPL provider takes on the financial risk for them. When the transaction goes through, the BNPL provider will pay the seller upfront in a certain period regardless of the customer’s deferred payment terms.
A lot of the time, BNPL providers will also conduct credit checks for sellers in-house, with the help of AI or their large databases. This makes sure a buyer is able to take on paying in instalments and reduces the risk of fraud or defaulted payments.
How can BNPL Help Increase Sales And Conversions for a B2B seller’s Online Store?
The most obvious way BNPL can help a B2B seller’s online store is by increasing sales and conversions. Offering BNPL as a payment option can entice customers who may be hesitant to make a large purchase upfront. And since customers are allowed to defer payment and break them up into instalments, they’re more likely to complete the purchase. Studies have shown that offering BNPL can increase sales by up to 30%.
But BNPL isn’t just a great way to increase sales; it can also help to improve customer satisfaction and loyalty. Customers who take advantage of BNPL are more likely to be satisfied with their purchase and to continue doing business with the seller in the future. This is because BNPL gives customers more flexibility and control when making purchases. They can spread out the purchase cost over time, making it more manageable. And if they’re unhappy with their purchase, they can return it without paying interest or fees.
Finally, BNPL can help to reduce checkout abandonment rates. Customers who see BNPL as an option are more likely to complete their purchase since they know they don’t have to pay the total amount upfront. Checkout abandonment is a significant problem for online sellers, so anything you can do to reduce it is worth considering.
What Are The Benefits Of Using BNPL as a Payment Option for B2B Buyers?
There are many benefits that B2B buyers can enjoy when BNPL is offered as a payment option. It gives buyers more purchasing flexibility, which is perhaps the most apparent benefit. They can also receive their products before payment. Certain BNPL providers also increase this flexibility by accepting payment in a variety of currencies, which can be hugely beneficial to buyers.
Another benefit of BNPL is that it can help customers better manage their cashflow. Customers can plan accordingly because they know the amount they will have to pay each month. It can help to avoid financial difficulties down the road, and it can also help customers to stay within their budget.
Finally, BNPL can help to improve customer satisfaction and loyalty. Customers who take advantage of BNPL are more likely to be satisfied with their purchase and to continue doing business with the seller in the future because they are given the flexibility and trust to defer payment.
Conclusion
The BNPL payment method can be an excellent way for B2B sellers to increase sales and conversions, as it can entice customers who may be hesitant to make a large purchase upfront or simply allow those who regularly make large purchases manage their cashflow better. In addition, BNPL providers can prevent fraud and lower the financial risk B2B sellers take on when they sell online by conducting credit checks and being the middleman in transactions. This can be a huge advantage for businesses of all sizes and help them manage their cashflow even better.