Payment options in an E-commerce store can make or break a conversion!
Your entire business obviously revolves around getting payments. Offering a convenient payment facility nudges a potential customer to make a purchase.
There are multiple payment gateway options and facilities that you can implement in your online store depending upon the nature of your business.
If you are a Magento 2 store owner, there are multiple payment gateway integration extensions for Magento 2 and Magento 1 stores.
Today, I’ll talk about the partial payment facility, how it is beneficial and what experts in the E-commerce field think about these instalment payments for a business.
Leveraging partial payments in E-commerce store means allowing your customer to buy now and pay later in instalments.
A potential customer may be unsure about making a purchase due to lack of money at a time. However, a partial payment option can encourage him/her to convert in your store!
Even experts recommend this payment-related marketing technique that can go a long way for your store!
Read what experts say about leveraging partial payment in online stores.
Experts’ opinion on leveraging partial payment in E-commerce:
Offering partial payment increases conversion. It improves the customer satisfaction that goes a long way! Moreover, layaway pricing can be helpful in reducing the abandon cart rates. In my opinion, offering partial payment in an E-commerce store is a win-win situation for customer as well as business!
Most E-commerce stores, especially startups, have to grapple with liquidity. For starters, online payment methods take a day or two to mature. This means that there may be a gap between a completed order and making ready the next product. While partial payment doesn’t mean fast receipt of money, the chance to pay with instalments will bring in more customers. This means that you will be looking at more frequent payments which in turn, increases your liquidity and production.
I believe partial payments go a long way toward increasing conversions. If you look at bigger electronics stores most will offer payment options through a third-party. Instead of paying $600 for that phone today, you could pay $20/month for it for a while and still get it shipped as soon as the order goes through.
I think this is a great model for E-commerce, especially with bigger purchases like this. You can catch a larger demographic that includes people who wouldn’t have been able to get it otherwise and people who are compelled by impulse buys when they see a good deal.
– Rex Freiberger, CEO, Gadget Review
The point of partial payments is to use the opportunity to sell more. Online or offline, you would prefer making maximum sales and not missing out on buyers because of their temporary lack of spending power. To leverage customers, you can mention the full price along with the deal on partial payment. It will convince the customers that it is a better offer to buy that $1000 you’ve been aiming to get for a while. Since most people are living on a budget, paying in full for some products does not suit them, and partial payments are their solution. 47% of smartphones in the US are sold in installments. This just shows how many people value and use this service.
Offering partial payment increases your customer base. Now your offer is suitable for more people. To increase your online conversion, you can offer multiple plans for partial payments for different products or services. When you offer plans that most eCommerce stores don’t, you’ll grab the attention of maximum customers. You can further improve your conversion by offering partial payment for expensive products that people hardly buy otherwise. This will add to your total tally of conversion as well.
– Damon Routzhan, Founder & CEO at Concrete Candles
If you are a Magento 2 store owner and want to implement the layaway plans in your store, you just got lucky! Meetanshi offers Magento 2 Partial Payment extension to offer customizable payment plans and facilitates customers to pay in instalments, layaway plans or EMI.
Some of its prominent features are:
- Enable the partial payment facility for particular customer groups and payment methods.
- Option to charge shipping cost and tax amount on the down payment or equally divide them into instalments with Magento 2 Partial Shipment facility.
- Auto capture instalment facility for the orders placed using PayPal and Authorize.net payment methods.
and many more.
So, do let me know what you think about this payment option in the Comments section below.
Also, please share the post with E-commerce store owners via social media.
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