E-commerce is an ideal platform for online businesses as it helps them become competitive over time. Similarly, e-commerce is vital for startups, small businesses, and large companies, allowing them to achieve long-term goals.
Through e-commerce, businesses can easily break geographical barriers and discover new target audiences worldwide.
Our demands and choices have changed as we reside in this digital era. We prefer to shop for products and services online using a few clicks.
Moreover, we are no longer habitual of paying the entire amount at once for the products or services we buy. Instead, we consider paying the total amount of products or services through e-commerce installment plans that are simple and cost-effective.
By doing so, we can purchase various expensive products without significantly stretching our budget.
This blog post will discuss how e-commerce installment plans are critical when revolutionizing businesses globally.
What do you mean by E-Commerce Installment Plans?
In this age of digitalization, consumers usually buy their desired products and services online. Furthermore, they pay their dues by transferring money electronically from personal accounts to sellers’ accounts using various payment options.
The whole phenomenon is referred to as e-commerce installment plans. Through these advanced installment plans, shoppers or consumers can get the items they bought straightaway.
Additionally, they have to pay a proportion of the total amount when purchasing. They can pay the remaining item amount in simple and convenient monthly installments.
E-commerce installment plans, also called BNPL (Buy Now, Pay Later) options, allow consumers to shop for numerous products or services that are otherwise hard to buy due to budget constraints.
How E-Commerce Installment Plans Revolutionize Businesses?
BNPL or e-commerce installment plans have indeed transformed different businesses or firms worldwide. For instance, Play, a leading airline from Iceland, has partnered with Uplift to provide its customers with impactful BNPL services.
It is a massive boost for travelers willing to buy tickets and turn their dreams into reality without breaking the bank.
The story goes on as Amazon has recently included a lucrative BNPL option for its customers who manage their small businesses.
Small business owners who use Amazon’s online store, Amazon Business, will benefit from this game-changing partnership between Amazon and Affirm.
The above scenario highlights the importance of BNPL options as more and more SMBs (small to medium businesses) will likely get funding using this facility to support their day-to-day operations.
Based on the above scenario, e-commerce installment plans are revolutionizing businesses and companies worldwide and will continue to do so in the coming years.
Advantages of E-Commerce Installment Plans
Businesses or companies in the e-commerce sphere can get numerous benefits by including BNPL or e-commerce installment plans in their offerings. These benefits include:
E-Commerce Installment Plans Make Customers Loyal
BNPL or e-commerce installment plans help businesses or organizations improve customer relationships. When customers buy products from your e-commerce business frequently, they develop an association or belongingness with your organization and your products.
They think you are a reliable company as you offer them an array of stunning products at affordable prices.
Gain Competitive Edge with E-Commerce Installment Plans
BNPL services allow businesses to gain a competitive edge over their competitors. As companies have started offering BNPL options on their e-commerce websites, you should also incorporate the same option on your website if you are willing to increase your customer base.
By doing so, you can grab the attention of new customers and smartly compete with other firms in the e-commerce industry. The primary objective behind enabling the BNPL option on your website is to provide convenience to customers.
In other words, you can make the entire shopping experience simple and engaging using the BNPL option. Customers will likely shop for products from your online store again if they find the shopping experience easy and attractive.
Prominent Trends Transforming the E-Commerce Landscape
In this post-COVID-19 era, different trends will likely rule the e-commerce landscape in the future. These trends are:
Mobile Payments and Digital Wallets are Growing
Mobile payments and digital wallets have already positively impacted the e-commerce industry. Consumers prefer financial freedom and security, which is why mobile payments and digital wallets are rising.
GlobalData states mobile wallet payments will grow by a CAGR (Compound Annual Growth Rate) of 19.9% until 2026. Likewise, 60% of the world population will use digital wallets by 2026 in some capacity.
Companies or businesses in the e-commerce industry should focus on collaborating with popular digital payment services like Google Pay, Apple Pay, and Samsung Pay to meet the growing demands of digital wallet consumers.
Alternative Payment options are Rising
Peer-to-peer payments, cryptocurrencies, and other alternative payments have become popular among consumers worldwide. That’s because they are flexible and provide more peace of mind to users than traditional payment methods.
Thus, businesses must include such payment methods to facilitate their customers as much as possible. By doing so, they can appropriately fulfill and exceed their target customers’ expectations.
AI and ML have Become Crucial
AI (Artificial Intelligence) and ML (Machine Learning) are useful when securing digital payment mechanisms and services. Therefore, e-commerce companies or organizations must invest in AI and ML to protect their digital payment methods in the best possible manner.
Moreover, AI and ML help companies detect fraud in real time. Hence, they can safeguard their customers’ e-commerce transactions comprehensively and bypass numerous security risks proactively.
All these trends can transform the e-commerce landscape in the right direction. At the same time, they will help boost e-commerce businesses globally because people rely on different digital payment services when making purchases through e-commerce installment plans or BNPL options.
Therefore, businesses must embrace such trends proactively. Otherwise, they will need help expanding their customer bases in the future. Unfortunately, they will not improve conversion rates and increase revenues.
The e-commerce landscape is evolving rapidly, and businesses can only survive by adding e-commerce installment plans to their armories. Luckily, companies like Amazon and Play Airlines have taken the right step, considering their customers’ ever-changing demands and preferences.
Businesses other than Amazon and Play Airlines must add e-commerce installment plans on their sites or stores by partnering with leading BNPL service providers.
This way, they can engage with their existing customers, satisfy their needs perfectly, and get the attention of new customers simultaneously.