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With growing numbers of consumers doing their shopping online, having an integrated payment system for your eCommerce platform is essential. For most merchants, the easiest way to do this is through a retail finance plugin.
In this article, we’ll explain what retail finance plugins are, how they work and how to choose the right one for your business.
What is a retail finance plugin?
Retail finance plugins for eCommerce are tools that allow you, the merchant, to offer financing options to customers at the point of purchase.
These plugins integrate with your eCommerce platform or website, making it easier for customers to finance purchases and spread the cost over time.
How do retail finance plugins work – and what are the benefits?
This essential software comes with a wide range of services and benefits – provided you find the right fit for your eCommerce site (as not all are compatible).
Here are some key aspects and benefits of retail finance plugins for eCommerce.
1. Integration with eCommerce platforms
Retail finance plugins are typically designed to integrate with popular eCommerce platforms like Shopify, WooCommerce, Magento, and others.
When done correctly, this integration simplifies the setup process and lets you offer finance options to customers without extensive development work. Some retail finance plugins can be integrated by you and your dev team (if applicable), while others may need to be integrated by the finance provider who owns the plugin.
Always check what integration options are available when considering a retail finance plugin, as delayed or ineffective integration can cause issues.
2. Flexible finance options
Most retail finance plugins give merchants the ability to offer various finance options to customers. This can include traditional instalment plans, interest free finance for a specified period, or buy now, pay later (BNPL) options.
A good finance solution should let you tailor these options to suit your business needs and customer preferences.
To find out more about retail finance solutions and how to choose the right one, visit our guide on the topic.
3. Increased sales and conversion rates
Offering retail finance options can boost your sales and conversion rates. Customers who might not have the immediate means to pay for a product upfront – or those who do and would rather keep their cash in the bank – are more likely to make a purchase when they have the option to spread payments over time.
Not only can retail finance increase conversions, but when done correctly it can lead to larger average order values and win you new customers as well.
4. Competitive advantage
In today’s economic climate, offering retail financing options gives you a competitive edge in the market. It lets you stand out from competitors and cater to a wider range of customers.
Adding a retail finance plugin to your eCommerce site is a key way to outpace your competition. And if they’re already offering finance, that’s even more incentive for you to follow suit – especially if your finance options are better!
5. Improved customer loyalty
If customers know they can spread the cost of a purchase on your eCommerce site, they’re more likely to give you their business. Even if another merchant is offering the same item on sale, the cash output may still be offputting for shoppers.
Choose a retail finance plugin that offers multiple payment options so customers can decide how many instalments they want to pay. Knowing they have a range of choices with you will inspire loyalty and repeat business.
6. Risk management and regulatory compliance
Retail finance plugins often include risk assessment and fraud prevention features. This helps you as a merchant to minimize the risk associated with offering financing options, and ensures that you’re only offering credit to qualified customers.
Many regions have regulations governing consumer financing and lending practices. Retail finance plugins often come with compliance features to help you, the merchant, adhere to these regulations and avoid legal issues.
To find out more about financial promotion guidance and how DivideBuy supports merchants with this, get in touch with us.
7. Customer support
As a merchant, taking care of your customers is obviously high on your priority list. However, you might not be able to handle queries and issues related to retail finance, as this is provided by an external lender.
When choosing a retail finance plugin, be sure that it offers customer support features, such as chatbots or customer service representatives, to assist customers with finance inquiries and applications. Also check the finance provider’s reviews and Trustpilot score. For example, DivideBuy has an NPS of 83, which tells merchants that customers are in good hands.
8. Analytics and reporting
Retail finance plugins often come with analytics and reporting tools that allow retailers to track the performance of their financing options. You can gain insights into how these options impact sales, revenue, and customer behavior.
It’s worth noting that most of these insights are top-level and limited, so you’ll want to choose a finance provider who can dive deep and turn your data into discoveries for growth (for example, DivideBuy gives merchants a real-time dashboard to track sales against goals and customer demographic insights).
In summary
Retail finance plugins for eCommerce are valuable tools to grow your online business. Offering your customers more ways to spread the cost of what they want to buy will lead to higher sales and conversion rates. It will also improve customer loyalty and give you a competitive advantage in the eCommerce market.
DivideBuy’s seamless retail finance plugin offers customers a finance journey of less than two minutes from application to approval. Merchants using our finance solutions are benefiting from conversion rates of up to 85%.
To start your growth journey with retail finance, why not book a demo with us now?
