As an online retailer selling electrical goods, you're in a great position to take advantage of customer demand by offering retail finance. Doing so gives shoppers more buying power to purchase items that cost hundreds (sometimes even thousands) of pounds, as they can ease the financial burden by spreading the costs. With that in mind, this guide outlines how to boost online sales with consumer electronics finance.
How does consumer finance work for electronic stores?
With consumer finance, you can offer shoppers flexible ways to pay so they can spread the cost of purchases over instalments. Customers don't need to cover the total amount upfront and feel more empowered to buy essential electronic items, such as a new phone or television. Offering additional types of finance has become increasingly popular in recent years, and it's now a crucial tool for online retailers looking to boost their sales and attract price-sensitive customers.
How does consumer electronics finance boost sales?
1) Flexible payment options
Offering alternative payment methods increases your chances of attracting customers who otherwise might not be able to afford electronic products and pay the entire cost in one go. Alternative financing options, such as buy now pay later (BNPL), lower the barrier to entry while increasing the likelihood of additional business from customers looking for their favourite payment methods.
2) Widen your customer base
Providing shoppers with consumer electronic financing options for your store increases your appeal to a broader audience. You can attract customers who may have discarded the idea of purchasing from you due to the high price associated with paying for items in their entirety. That all changes by offering additional ways to pay at checkout, with the number of shoppers buying from your store increasing thanks to added payment flexibility.
3) Increase customer satisfaction
Consumer electronics financing also helps increase customer satisfaction by giving shoppers more payment options. Offering finance lets consumers choose the payment plan that best fits their budget, reducing the risk of financial strain while helping them feel happier about shopping with a brand offering their preferred payment solutions. This will likely lead to an uptick in positive reviews and word of mouth, with shoppers inclined to recommend you to others while returning for repeat business themselves.
4) Increase the average order value
Removing the financial barrier for customers makes it easier to afford more expensive items and increases the average order value (AOV). Shoppers can buy the goods they really want instead of opting for sub-premium, cheaper options. This leads to a higher average order value for your business and a jump in revenue.
5) Reduce cart abandonment
The average cart abandonment rate is around 70%, meaning you're leaving plenty of business on the table due to customers exiting at the most crucial stage in the buying journey. With online finance, you can reduce cart abandonment rates and enjoy more sales with a selection of ways to pay. Paying £500 upfront might not be realistic for many shoppers, but it's manageable when they can spread the cost over several payments. Making finance options visible at checkout boosts customer confidence and lowers cart abandonment rates.
Key features of consumer electronics financing solutions
1) Seamless integration with popular eCommerce platforms
Partnering with the right finance solution means you can offer customers a five-star shopping experience. Aim to work with a provider that integrates with the most popular platforms, such as Shopify and Magento, as well as offers bespoke integrations. A fast and seamless integration allows you to provide financing options directly from your website without delay, making it easy and convenient for customers to apply for finance and buy products.
2) Customisable options
Offering consumer electronics financing should be customisable to an extent, so it's easier for retailers to integrate payment methods into their websites and offer a tailored solution for customers. This includes having several finance options, repayment plans and general financing terms.
3) Multi-lender products
Multi-lender solutions increase the chances of application approval by redirecting customers to alternative and better-suited lenders if they are initially declined. Give your entire customer base the confidence to use finance with solutions that are supported by multiple lenders, plus look out for smart “Will I qualify?” tools that use soft credit checks to give customers an indication of how likely their application is to be accepted.
A valuable asset
Consumer electronics financing is valuable for any online retailer looking to boost sales and attract more customers. And by partnering with Deko, you can get set up easily and take advantage of multi-lender options that lead to higher acceptance rates and more business for your consumer electronics store.
