It's a question thousands of merchants ask themselves, and the answer isn't always the same. Does it require focusing on marketing, improving product lines or looking at niche markets?The answer might be a little of all three, but there's one other important, proven method for increasing eCommerce business: retail finance solutions.
Four benefits retail finance solutions have to offer
Not only can retail finance lead to increased conversion rates, but it improves average order values and customer loyalty. Here, we explore how retail finance helps you grow your eCommerce business and achieve your goals.
1. Improved conversion rates
Offering retail finance solutions to customers helps improve conversion rates and decrease cart abandonment – you're killing two birds with one stone. This is because some customers may hesitate to make a large purchase all at once and prefer to pay for an item over time.
By offering financing options, you make it easier for customers to commit to purchases, which in turn increases conversion rates and helps you appeal to a broader customer base. It also empowers shoppers and gives them more flexibility to pay using their preferred payment methods.
2. Increased average order value (AOV)
Offering retail finance at your eCommerce store encourages shoppers to spend more per transaction. Customers are more likely to buy higher-priced items if they can spread the cost over a period of time, as they benefit from increased financial flexibility.
For instance, if a customer is interested in purchasing a £1,000 electronic item but can't afford to pay the full cost all upfront, offering a financing solution, such as buy now pay later (BNPL), allows them to pay the amount over several payments. Subsequently, shoppers are more encouraged to complete the purchase instead of finding a cheaper alternative. The result is often an increase in the average order value for businesses.
3. Customer loyalty
Customers are more likely to return to your business when they have options, like being able to finance their purchases. This is especially true if you offer interest-free and low APR options.
Indeed, a growing number of shoppers are looking for eCommerce solutions that offer their preferred payment method. By meeting their needs head-on, you provide a service that increases the likelihood of repeat purchases and sets you apart from competitors that refuse to take a more personalised approach to finance.
4. Competitive edge
Shoppers continually look for ways to save money and make purchases easier, one of which is retail finance. With retail financing solutions, you’ll attract new customers who are looking for these types of services.
Additionally, you’ll improve customer retention and be seen as the eCommerce store that provides flexible ways to pay. You can discourage shoppers from using competitors and build a reputation as one of the best, most flexible and customer orientated eCommerce stores in your industry.
Deko’s retail finance solutions
Now that we've discussed the benefits of retail finance solutions for your eCommerce business, let's take a look at how Deko helps you achieve your goals. Deko offers a range of retail finance methods, including interest-free credit and buy now, pay later. These solutions are designed to give your customers flexibility in how they pay for their purchases while helping you sell more.
Deko can be easily integrated into an eCommerce website. Once integrated, your customers see the available financing options at checkout, making it easy for them to choose the payment method that works best for them.
Flexible payment plans
Our payment plans can be customised to fit the needs of your business and its customers. It means you can offer a variety of payment plans that suit different budgets and timelines. For example, you can offer BNPL financing interest-free or something more traditional, such as a pay monthly interest-bearing option.
Deko is a multi-lender platform, which means we can connect your customers to lenders most suited to their financial needs. This vitally boosts finance accept rates meaning that more of your customers can buy the products they need through flexible finance options. Plus, you won’t have to wait until the end of the loan term to see the benefits, as you’ll receive payment upfront and in-full.
Deko case studies
We’ve helped many businesses thrive through our retail finance solutions. As a result, they’ve increased sales and average order values while reducing cart abandonment at checkout. Here are some examples showcasing how businesses grow their eCommerce offering with Deko.
London Camera Exchange
London Camera Exchange began in the 1950s as a photography studio, eventually expanding to 27 shops throughout the UK and having an online presence. To address changing consumer demand, the company integrated our platform into its website to offer more consumer finance options. Deko provided more flexibility in payment options, with London Camera Exchange seeing an immediate impact on its revenue – a 7.5% increase in credit acceptance rates and a 6% increase in total revenue generated through finance compared to their previous lending platform.
Steven Stone, established in 1937, is a high-end jewellery brand providing custom-designed, ethically-sourced diamonds to its customers through online and physical stores. The brand faced the challenge of average basket size and inflexible finance options, which hindered sales and slowed growth. With Deko's multi-lender platform, Steven Stone was able to offer flexible finance options that led to a 30% increase in sales and higher conversion rates at checkout. The onboarding process was smooth and frictionless, allowing for a quicker implementation of its retail finance solutions.
Read the full case study
To see how we’ve helped other retail businesses grow their eCommerce stores, increase their customer bases, and achieve higher revenues, check out the Deko case study page on our website.
Summary: Grow your eCommerce business with retail finance solutions
Offering retail finance solutions helps eCommerce businesses grow by improving conversion rates, increasing average order value, maintaining customer loyalty and providing a competitive edge in the market. By partnering with Deko, your business will see significant improvements in its sales and AOV as you sell more and grow your brand.