Online shopping has become increasingly popular in recent years, with customers seeking the convenience of shopping from the comfort of their own homes. In spite of the multiple benefits, many shoppers still face a major issue: the ability to afford their desired purchases. For e-commerce businesses, offering financing options can be the perfect solution to this problem. In this article, we’ll discuss the benefits of offering financing options on your e-commerce site and why you should consider adding this option to your online store.
Increased sales
First and foremost, offering financing options can help increase your sales. Customers who may not have been able to afford a purchase will now have the option to finance it. This opens up your business to a whole new customer base who may have otherwise passed on your products. It also allows for increased spending, as customers may choose to pay for more expensive items over time.
Bigger average order value
Not only do financing options increase the likelihood of making a sale, but they also lead to a bigger average order value. With the ability to finance larger purchases, customers are more likely to add additional items to their cart. Offering financing may also encourage customers to purchase higher end items that they may not have been able to afford upfront.
Improved customer loyalty
Offering financing options can also be a great way to improve customer loyalty. If you’re able to offer a competitive financing deal with favorable terms, customers will be more likely to return to your store in the future. This can lead to repeat purchases and a loyal customer base that trusts your brand.
Better cash flow
Another benefit of offering financing options is the ability to improve your cash flow. While some customers may choose to finance their purchases, others will pay upfront. This will bring in immediate revenue that can be used to reinvest in your business, from marketing efforts to new product development.
Increased brand credibility
Offering financing options can also boost your brand credibility. It shows that you’re willing to work with customers and offer options that are convenient for them. By offering financing, you’ll be seen as a customer-centric business that cares about their needs.
Conclusion
In summary, offering financing options on your e-commerce site has many benefits for both you and your customers. These range from increased sales and revenue, to improved customer loyalty and brand credibility. With all of these advantages, it’s no wonder that more and more online businesses are offering financing options. If you haven’t considered it already, now is the time to start offering this great option to your customers.
