E-commerce merchants lose 18-billion dollars’ worth of business to cart abandonment each year. Cart abandonment refers to an online shopper who did not move forward with a purchase in their cart. In response to this growing issue, many merchants believe they need to sacrifice their margins to protect their volume. For this reason, investing in a consumer finance product can help merchants combat this problem.
Important Factors Leading to Cart Abandonment
Unexpected shipping costs, complicated checkouts, lack of payment methods and negative peer reviews can all lead to cart abandonment. Investing in the right POS financing solution can help merchants. The right BNPL solution can help merchants convert more sales and decrease cart abandonment.
Unexpected Shipping Costs
According to Shopify.com, unexpected shipping costs are one of the main reasons for cart abandonment. Shipping costs can increase the average order size by 10%. Consequently, this can push customers to downgrade to a less expensive item or off the checkout page altogether.
A BNPL payment gateway, like WeGetFinancing, allows customers to bundle the shipping costs into their financing payment. This will help prevent any type of sticker shock at the checkout page. A multiple lender BNPL solution will lead to a variety of financing options, allowing them to roll their shipping costs into the payment.
Moreover, merchants might also send shoppers who abandoned their cart a follow-up email. Often times, these emails are titled “Did you forget something?” A multiple lender, consumer financing solution can tell customers exactly what their payment will be. For example, “buy everything in your cart for $100 a month. The right consumer financing solution can lessen the time your customer spends at the checkout. This gives customers more choices better suited to their specific needs.
Complicated Checkouts and Unadaptable Financing Options
According to PYMNTS.com, 73% of customers will never return to a webstore if they had a bad checkout experience. Congested checkout pages-filled with too many financing options -can create confusion for the customer. Most consumers do not know the difference between a BNPL lender, a white-labeled credit card and a lease. If they are presented with too many options, they will not know which lender is the best option for their specific lifestyle.
Furthermore, if a customer needs to fill out multiple applications to compare the monthly payments for each lender, then they may abandon their cart. However, a multiple lender BNPL payment gateway allows the customer to fill out one application where customers can compare multiple financing options, side-by-side, for which they are already approved, helping merchants convert more applicants into customers.
The Positive Impact of a BNPL Multiple Lender Gateway at the Checkout
Increase your valuable payment methods
One lender cannot underwrite every customer. Multiple financing options are imperative in this evolving ecommerce market. To reach and capture today’s consumer, merchants need to have several options in a centralized, easy-to-access location. According to PYMNTS.com, 60% of consumers will leave a merchant’s website if their preferred payment method is not available.
Multiple lender BNPL gateways gives the modern day consumer what they value most, options. Without options, merchants risk losing their hard- earned customers to cart abandonment. Multiple lender gateways, like WeGetFinancing, give the merchant and the customer everything they need to increase their conversion rate.
Avoid Negative Peer Reviews
Online reviews matter. According to mobal.io, Google is the fastest-growing review platform. A study conducted by Bright Local pointed out that 82% of customers read reviews before moving forward with a purchase. Consequently, merchants are often blamed for the mistakes of their consumer financing partners, which is why partnering with the right BNPL partner matters more than ever.
The quality of the merchant’s product, the exceptional customers service and the efforts made by the merchant to ensure their customer had a nice buying experience can dissolve into a “guilty by association” charge if their lending partner did not match their same level of service. If a merchant’s customer leaves a bad review on Google about their financing provider, then they risk losing their customer to cart abandonment.
Merchants spend a lot of resources to attract a visitor to their website, which is why a multiple lender POS financing solution that supports the merchant’s brand and customer is a necessity in this market.
The Importance of Picking the Right BNPL, Multiple Lender Payment Gateway
Shopping cart abandonment is on the rise. However, with the right financing partner and installment providers, ecommerce merchants can increase their overall sales, average order value and conversion rates. Taking advantage of the growing BNPL financing solutions and multiple lender payment gateways will help merchants reduce their exposure to shopping cart abandonment. These solutions will help unexpected shipping costs, complicated checkouts, lack of payment methods and negative peer reviews. If customers are presented with a payment that is compatible with their lifestyle, then they are more likely to move forward with the sale and stay loyal to a merchant much longer.
