Today I’m going to talk about financing purchases in eCommerce. Specifically this instant online funding service that I just met and I found it very interesting. I would like to review the main benefits that an eCommerce offers to offer the fractional payment to its customers:
– Higher conversion ratio: Obviously, the more facilities we put to the potential client, the easier it will be to close the transaction.
– Increase in the average ticket: the products of a higher amount are those that are more likely to be financed. This will have a direct impact on the average amount of purchases.
– Reduction of abandoned carts: this is an increasingly common problem for any online store. There are many factors that affect that a user desists the purchase, but without a doubt the final price is one of the most determining. If we manage to reduce that friction point we will increase the number of transactions.
As eCommerce, what should I ask a financing service?
There are a series of minimums that our financial partner must meet, some directly related to technical and business aspects that affect the store itself and others that have direct implications for the client, after all we are responsible to them and any incident that can be given with the payment will have consequences for our brand. The first thing you need is a company that is solvent and specialized in financial solutions for business.
If we talk about solvency we can not forget the payments. We need to know that we are going to receive 100% of the amount and this type of service is delivered to us upon completion of the purchase. We need to put it in a quick way, that the credit company assumes the risk of financing and manages refunds or cancellations. This is very important at the level of treasury and internal management. At a technical level it is essential that you provide facilities and support for integration regardless of the eCommerce platform you use.
International coverage is increasingly important
One of the biggest advantages of selling online is that we can expand to any market (obviously in a thoughtful way and assuming the economic and logistical challenges) that is why the financial partner should reach as many countries as possible so as not to limit us. The buyers have also gained various ease in finding the source of funding online. For buyers who are domiciled in the UK, payday loans uk direct lenders are one of the best solutions.
There is one last important factor for customer and trade equally: the management of the credit grant. It is essential that it be as fast as possible and ideally be done completely online. If we involve a phone call or any other paperwork that takes the user out of the process, we are very likely to lose the sales impulse.
As eCommerce matures users lose the fear of making purchases of a larger amount, the problem is not so much a matter of confidence. Traditional retails have that differential advantage of financing much more widespread than electronics, so this type of service is a way of equating us in benefits.