With each passing day, the e-commerce industry is becoming increasingly competitive. Businesses have to come up with new tactics to engage their target customers. The e-commerce installment plan is one tactic that lets companies attract current and potential customers appropriately.
From a consumer’s perspective, they can make purchases according to their budget and pay for them in simple yet manageable installments.
This blog post will explain the significance of an e-commerce installment plan for businesses in the e-commerce space.
What is an E-Commerce Installment Plan?
An e-commerce installment plan or BNPL (Buy Now, Pay Later) option is a results-driven selling model that lets customers quickly buy numerous products or services. The good thing about this model is that they can pay the dues in a split or several installments.
It means customers do not need to pay the total price of a product or service at once. They can break the entire cost into small and manageable monthly and quarterly installments.
Customers can purchase expensive products and services through this installment plan without stretching their budget. They need to pay a small amount at the time of the purchase. This way, e-commerce businesses can boost sales considerably.
How Can E-Commerce Businesses Benefit From Installment Plans?
Small or large businesses can make the most of e-commerce installment payment solutions by making their products and services more affordable and accessible to new and existing customers.
For instance, Laybyland is an Australian e-commerce brand launched in 2012. The company initially operated its business via two business models: Layby (Pay Later) and Shopzero (Shop Now, Pay Later).
In the last ten years of e-commerce operation in the Australian market, Laybyland has experienced tremendous growth. Initially, they offered 10000+ products available on two websites.
They now have 400,000+ products in their armory, accessible in different online stores, including Layawayland, Mylayby, Shopzero, and Laybyland.
As a part of Laybyland, Shopzero offers e-commerce installment services with the help of seven key partners: Zip, Humm, Latitude, Openpay, Afterpay, Wizpay, and Klarna.
Shopzero has established its credibility in the BNPL or e-commerce installment plan market by maintaining control over all e-commerce operations and payment processes within its system.
The popular online store has played a vital role in transforming several sectors, such as fashion, cosmetics, electronics, office supplies, gardening tools, children’s toys, travel, and furniture.
Installment plans for e-commerce businesses have positively impacted consumer payment habits. They have turned out to be a decisive factor in consumer purchasing decisions.
The above example demonstrates the importance of e-commerce installment payment solutions in enabling businesses to improve conversions and sales.
PayPal Decides to Become a Player in the Installment Plan For E-Commerce Space
PayPal, a leading online payment system, has entered the e-commerce installment plan market with its exclusive product Pay in 4.
Hence, PayPal customers can take advantage of this installment plan for e-commerce or BNPL service and pay the amount of a particular product or service in four easy bi-weekly installments.
Consequently, PayPal can grab the attention of potential customers and increase its customer base to the next level.
Why Do Customers Prefer the E-Commerce Installment Plan?
The BNPL or e-commerce installment option has recently become one of the most impactful payment solutions. Therefore, businesses operating in the e-commerce industry must understand why consumers prefer the e-commerce installment option over other payment solutions.
Once businesses know the actual reasons, they can instantly improve their conversions and increase sales.
Here are different reasons indicating customers like to use e-commerce installment plans, depending on their specific needs:
Customers Are No Longer Interested in Using Credit Cards
Customers are not willing to pay higher interest rates. Thus, they want to avoid using credit cards when purchasing various products and services.
Apart from this, other crucial factors like poor reward programs and declining credit limits have compelled consumers to prefer e-commerce installment services over credit cards.
E-Commerce Installment Options Are More Affordable
Unlike traditional credit cards, e-commerce installment options are more affordable. Consumers need to pay the whole amount in small and easy monthly or quarterly installments.
In short, these services offer consumers an affordable way to finance their purchases.
As an e-commerce business owner, you can benefit from Payment Plans WC, an excellent WordPress plugin enabling customers to pay their dues in affordable installments. This way, you can improve conversions and sales significantly.
E-Commerce Installment Options Are Convenient
If you are at a store and want to buy a product, the installment plan for e-commerce comes in handy. That is because it lets you purchase your desired product without paying the entire amount upfront.
If you do not carry cash, you can benefit from e-commerce installment services as they help you immediately buy expensive products under your budget.
Based on the convenience e-commerce plans offer, we can safely assume that installment payment plans have boosted the online shopping phenomenon worldwide.
E-Commerce Installment Plan Market Growth Potential
The e-commerce installment plan or BNPL (Buy Now, Pay Later) market touched $23.22 billion in 2022.
It will continue to grow at a CAGR (Compound Annual Growth Rate) of 22.0% from 2023 to 2030. It will increase from $30.38 billion in 2023 to $122.19 billion in 2030.
Wrapping Up
We hope you liked our blog post that enables you to understand the significance of an e-commerce installment plan.
As residents of the digital transformation era, our buying habits and choices have changed dramatically in the last two decades.
Thus, e-commerce companies or firms must use contemporary ideas when meeting with ever-changing customer preferences.
In this situation, the role of an e-commerce installment plan is paramount. The notion helps businesses appropriately improve customer satisfaction, conversions, sales, and customer satisfaction.
For businesses willing to enhance their customer bases, conversions, and sales, an Instant Checkout for WooCommerce plugin is a great choice.
The plugin allows businesses of varied sizes to improve customer shopping experiences considerably. They can easily integrate a side cart into their WooCommerce websites.
This way, customers can add multiple products and instantly complete the checkout process with a single click, enabling businesses to attain long-term goals.
