In this article, Hokodo’s VP of Sales, Nasri EL-Sayegh, explores how buy now, pay later (BNPL) can unlock your sales potential and explains why it’s no longer just a nice-to-have but an essential when it comes to B2B e-commerce.
Buy now, pay later is certainly having a moment right now, and not just in consumer commerce. Across B2B trade, an increasing number of buyers are opting to enter into interest-free deferred payment agreements.
For customers, the benefits of B2B buy now, pay later are obvious. They get the stock, materials, equipment or services they need to run their businesses, all while enjoying the freedom of not having to pay until 30, 60, or 90 days later.
What may not be so obvious at first are the commercial benefits that a buy now, pay later solution could offer you as a seller. The question is this: how can BNPL unlock your B2B sales potential?
More sales
Offering your customers the chance to buy now, pay later increases the number of sales your business will make. We all know it’s not the only metric that matters when it comes to sales and growth, but it’s certainly one of the most important.
Why does BNPL stimulate sales? Think about it from the customer’s perspective. If you were offered the chance to defer payment or spread it over several months for free, would you not also be inclined to make a greater number of purchases?
B2B merchants and marketplaces integrated with Hokodo’s Buy Now, Pay Later solution have reported an average increase in purchase frequency of 24%. For one of our clients, this figure reached 57%.
Bigger baskets
When customers know that they don’t have to pay for their purchase in full at the checkout, they’re significantly more likely to either increase the number of items in their basket or opt for items of a higher value – or both, if you’re lucky.
Either way, this means good news for another of your key commercial metrics: average order value (AOV) or basket size. On average, business buyers choosing to pay later with Hokodo have an AOV 30% higher than customers paying upfront.
Higher conversion rates
Does your B2B e-commerce store struggle to keep customers from dropping out of the funnel? Is your conversion rate stagnating or, worse, dropping? Implementing a Buy Now, Pay Later solution could be the answer.
Think about it this way: once you’re offering payment terms that are flexible and convenient, customers have one less reason not to buy from you.
Check out our comprehensive guide to boosting B2B e-commerce conversion rates for more.
Boosting trust and loyalty
The fact you’re letting customers pay on terms in the first place shows that you trust them. In turn, they will trust you as a supplier and are much more likely to remain loyal. After all, why would they take their business to the competition when you’re offering them the chance to pay later?
According to Sana Commerce’s recent 2022 B2B Buyer Report, 81% of business buyers think the relationship between buyer and supplier is important in the buying process. Perhaps surprisingly, 84% would buy from a supplier they had a great relationship with even if business terms were less preferential. Imagine what you could do with great relationships and preferential business terms.
Win new business
How does your marketplace or e-commerce store stand out from the competition and the incumbents? If you’re struggling to think of a unique selling point, then you’re probably already losing business.
Integrating a Buy Now, Pay Later option into your checkout is an effective way to increase your share of customers for one of two reasons:
- Your competitors don’t currently have the ability to offer payment terms online, so your BNPL offering will be a highly attractive alternative.
- Other players in your niche are already offering deferred payment schemes, so implementing a Buy Now, Pay Later solution is necessary for remaining competitive.
Ready to reap the rewards of BNPL? Book a demo today and let’s explore how we can help you sell more and grow your business.
