The ecommerce landscape is growing at a fast pace – by 2026, it’s expected that 24% of all retail purchases will be made online, with the global ecommerce market expected to total over $8.1 trillion.
As consumer demand for online shopping accelerates, retailers need to be agile – while it’s true that more customers are looking for ecommerce solutions, it also means that more competition among ecommerce retailers will continue to arise.
In order to attract new customers and retain existing ones, retailers need to create a shopping environment where customers feel confident, secure, and at ease during their purchasing journey. Pay after delivery is a tool that can deliver on all of these elements, helping you to differentiate from competitors and provide customers with exactly what they’re looking for.
Here, we’ll explore the importance of offering a great checkout experience and share how pay after delivery can reduce online shopping anxiety for customers.
Understanding pay after delivery
Pay after delivery (PAD) is a payment solution that allows customers to go through the online shopping experience without paying upfront, so they can receive an item and assess it before committing financially:
- They complete the checkout process but their payment method is not charged.
- The item is shipped to them and they can test it out for quality, size, and functionality before deciding whether they want to keep it.
- If they do keep it, their payment is processed.
- If they want to return it, they send it back by following the process that the retailer has set up.
Splitit offers PAD, as well as an optional installment payment solution – if customers decide to keep the item, they can choose to pay for it through a series of installments using their existing credit card.
With Splitit, PAD is a simple and frictionless process that puts your customers in control of their budget and finances. There’s no need for them to fill out any applications or apply for additional credit – everything works with their existing credit card. They can move through a secure checkout process that doesn’t require them to apply for third-party financing or hand their personal information over to an external agency.
With our white-label solution, all of these benefits are attributed directly to your company, as your payment options are presented as a holistic part of your brand. This means you can offer PAD (with optional installment payments) and give your customers a variety of ways to make a purchasing decision within an easy, uncomplicated checkout flow.
Learn more about PAD can be a catalyst for online sales growth.
Alleviating online shopping anxiety
Pay after delivery allows customers to shop online while getting the benefits of an in-store experience – they can touch, test, and assess a product before paying for it, which puts control back into their hands. This helps to alleviate online shopping anxiety in a variety of ways.
Financial Security
It’s extremely important that your customers feel they can rely on a secure checkout process – recent data shows that not trusting a site with credit card information is one of the top reasons for cart abandonment.
With our PAD solution, customers can rest assured that their credit card information is protected according to the highest security standards. Pay after delivery also gives them peace of mind that they’re not financially committing to a purchase until they’re absolutely sure that they want to keep it. If they decide not to keep a product after receiving it, there’s no need to worry about their funds being tied up in a long returns process.
This allows for better budgeting and financial management, as well as flexibility with the way they choose to handle their money.
Try before you buy
Pay after delivery allows customers the core benefit they get from in-person shopping – they can make sure they’re happy with products before deciding to purchase them. After receiving their delivery, they can inspect, evaluate, and do whatever they need to do in order to make a decision they feel confident about.
Whether it’s trying on clothing or testing out how a piece of furniture looks in their home, PAD gives customers the space they need to make a choice before committing financially.
Flexibility and convenience
When they choose Splitit’s PAD solution, retailers can provide their customers with a multitude of flexible payment options.
Using their existing credit card, customers can fund their PAD purchase and wait until they’ve decided to keep a product without tying up their funds, which gives them more control over their cash flow.
With the installment payment option, they can also choose a repayment schedule that fits their budget and their lifestyle. As Splitit works with their existing credit card, they don’t need to worry about fees, credit checks, or penalties – they already have everything they need for a flexible and convenient payment solution.
Boosting consumer confidence through an enhanced shopping experience
PAD helps retailers to create a positive shopping experience in a variety of ways. It alleviates financial commitment and helps to take the anxiety out of making an online purchase – just as customers can walk out of a store, they can decide to send a product back before paying for it.
It also shows customers that you trust them with your products, and that you trust your products enough to send them out for testing and inspection before payment. Once they’ve received a product and are happy with it, customers will associate this positive experience with your brand – which helps to build their confidence about shopping at your online store.
Encouraging new customer acquisition
Pay after delivery is a great way to attract new customers and drive conversion. New customers who haven’t tried a particular product or shopped with a particular retailer have the option to go through the experience without committing financially.
By removing some of the barriers that may prevent new customers from making a purchase, retailers have the chance to connect with a wider audience. Offering flexible payment options in the checkout can also help to reduce cart abandonment, as customers find the solution that will drive them over the checkout line.
Building trust and reputation
Pay after delivery can enhance your overall customer experience, which builds trust and boosts your reputation in a variety of ways. By giving your customers the chance to try before they buy, you can create a strong brand connection and sense of loyalty. This helps to generate positive reviews and build brand affinity in your customers’ wider networks.
When customers have had a positive experience with PAD, it encourages repeat business and allows you to build a strong retention strategy. It also helps you to differentiate from competitors and stand out within your market.
Pay after delivery is a solution that can help you to grow your business, attract new customers, and drive loyalty.
By giving customers the option to test out your products before handing their money over, you’re providing them with flexibility and control over their finances. This creates a positive customer experience, which drives customer satisfaction and repeat business.
In order to achieve true success with PAD, it’s important to create a frictionless checkout experience that is secure, simple, and effortless for your customers. With Splitit, you can implement a white-label solution that lives entirely in your brand ecosystem, with the option to incorporate BNPL installments to further enhance your flexible payment offering.
Get in touch to learn more about PAD and how we can help you improve your checkout experience and drive AOV and conversions.