Our purchasing behavior is shifting increasingly from the offline to the online market. For you as a webshop owner, this makes it an ever greater challenge to be attractive to new customers. One way to achieve this is by offering payment after delivery. This feature is considered very attractive by consumers, as it reduces the barrier to conversion.
To make a good decision on whether pay-later is right for your webshop, you have webshop specialist Best4u has dedicated a blog post to it. So sit back and take your time, so you can make a well-considered decision.
Various methods of paying later
First of all, it is good to realize that there are various ways to pay later. You can choose to partner with a company like Klarna or Afterpay. In this case, as a webshop owner, you do not risk the payment being completed, as you transfer this risk to the partner you work with. You can offer your customers the choice between installment payments or one-time transactions. A more traditional method is payment by invoice.
Minimum spending
As easy as pay later is, there are also downsides to this concept. One of them is the minimum spending requirement often attached to it. There are partners where consumers are required to spend at least 100 euros to use the service. Not exactly efficient if your webshop consists of cheap goods.
More conversions
Research has shown that paying later increases conversion rates. This is because the pain of paying only needs to be felt at a later stage, forcing customers to complete their order sooner. Another logical explanation for this is the authority projected by offering the option to pay later. This establishes a bond of trust, which is very important online.
Need money
Especially if you sell seasonal products, it makes perfect sense that you want to see your money flow into your account quickly. After all, you are in the months you depend on, and with deferred payment, that simply takes longer than you would like. So, ask yourself carefully whether you can handle deferred payments.