Why buying on credit is the key to the success of your online store

How to change the buyer's journey without raising prices? Take a look at your online store. Do you realize how many customers you are losing due to the lack of convenient loan offers? Who likes to wait for the funds to accumulate for the desired purchase? Research shows that the credit purchase option can be the key to increasing sales and attracting new customers. **First, it expands the availability of products.** Imagine a buyer who has been dreaming of a new smartphone or home appliance for a long time, but does not have a lump sum. By providing the opportunity to buy now and pay later, you make the choice obvious for him - your store becomes the preferred one. This approach not only attracts attention, but also creates loyalty. **Secondly, credit programs help increase the average bill.** Customers, seeing the possibility of installment plans, tend to add more items to their cart or choose more expensive options. This naturally leads to increased income for your business. **Thirdly, the introduction of credit offers increases overall conversion.** Customers stop thinking and comparing, making purchases faster and more confidently. Have the benefits become obvious? Let's figure out how to implement this strategy and what steps you will have to go through.

Glossary

• 📈 Conversion - The percentage of users who completed the target action on the site (for example, purchase) from the total number of visitors.
• 💳 Credit offer - Special conditions that allow the client to pay for a product or service in installments or with deferred payment.
• 🛒 Average bill - The average amount that a buyer spends in one transaction in an online store.
• 🔄 Implementation stages - Sequence of steps that must be completed to launch credit offers in an online store: choosing a partner, setting up the system, training employees and advertising the service.
• 🌐 Online lending - The process of providing a loan via the Internet, without the need to visit a bank office.
• 👍 Benefits - Features or aspects of the offer that make it attractive to customers, such as ease of application or low interest rates rates.
• ❌ Disadvantages - Negative points or restrictions associated with the offer, such as possible hidden fees or stricter conditions for borrowers.
• 🏦 Financial partner - A bank or credit institution that provides credit offers for online store customers.
• 📜 Documentation - Necessary documents and agreements that the online store and clients must provide to obtain a loan.
• 🔍 Underwriting - The process of assessing a borrower's creditworthiness to make a decision on whether to issue a loan.
• 📊 Sales statistics - Data on the quantity and amount of goods sold, used to analyze the effectiveness of credit offers.
• 🚀 Marketing campaigns - Advertising activities aimed at informing customers about the possibility of purchasing on credit and stimulating demand.
• 🏷️ Loan rate - The interest rate at which a loan is provided to the borrower.
• 📅 Loan term - The period during which the borrower must repay the loan.
• 🧩 Integration with the site - The process of adding credit offer functionality to an existing online store.
• 📊 Analytics - Collect and interpret data to evaluate the effectiveness of credit offerings and identify areas for improvement.

How to select and connect a credit institution

When I first decided to implement credit purchasing in my online store, I realized that one of the important steps was choosing the right credit institution to cooperate with. There are many factors to consider, such as the popularity of the bank, loan terms and interest rates.

How I found a suitable credit institution

I started by analyzing various banks and their offers.

The main selection criteria for me were:

• 📊 Popularity and reliability of the bank. I selected several of the most recognizable banks in which clients would have more confidence.
• 💰 Interest rates on loans. I tried to find organizations that offer more favorable conditions for my customers.
• 📞 Good customer support. It was important for me that the bank offered quality service and support.

After detailed analysis and consultations with colleagues, I entered into agreements with several banks, which allowed me to diversify offers for clients.

Adding the "Buy on Credit" option to the site

After the contracts were concluded, the next step was to finalize the site:

1. 🖥️ Bank integration into the platform: The developers have added bank widgets to product pages. This allowed buyers to immediately see offers and choose the appropriate loan option.
2. 🛒 "Buy on credit" button on the product card: Added a button that redirects the buyer to the loan application page.
3. 🗂️ Information on the site pages: I have posted detailed information about the possibility of purchasing on credit on the site so that clients can familiarize themselves with conditions in advance.

Application and Approval Process

On the application page, I added a few critical elements:

• 📄 Online form: The buyer fills out the application directly on our website.
• 📩 Application verification and approval: The application is sent to the selected bank, and the buyer receives a decision within a few minutes.
• 📲 Notifications: Once the application is approved, the buyer is notified of the results and next steps.

Useful and harmful practices

Useful practices:

• 🌟 Popularity bank increases customer confidence.
• 🔍 Clear and understandable terms and conditions on the site.
• 🚀 Fast integration of loan offers.

Harmful practices:

• ❌ Unclear and confusing loan terms.
• 📉 Unfavorable interest rates.
• ⛔️ Lack of quality customer support.

Results

I am confident that the right choice of credit institution and competent integration of credit offers can significantly increase the conversion rate of your online store. Compare conditions, choose the best offers and make the loan application process as simple as possible for your buyers.

How does buying on credit work?

Based on my experience, introducing the credit purchase option was a significant step for us. This has greatly simplified the process for our clients and reduced the burden on our staff. I share strategies and examples that helped us make this process as smooth and efficient as possible.

🤝 Minimizing actions on the part of the seller

When a client chooses to purchase on credit, the bank independently contacts him to clarify all the necessary data. This means that online store employees are freed from additional responsibilities for collecting and processing information.

📜 The process of processing loan documents

The process is as follows way:

• 📝 Filling out the form: The buyer fills out the form on the store’s website.
• 📞 Bank-client communication: The bank contacts the client to clarify details.
• 📊 Bank decision: After some time, the bank informs the client and us about the decision.

After the loan is approved, the courier delivers the loan documents and goods, receives the buyer's signature and a copy of the passport. These documents are transferred to the bank, and it transfers money for the goods to our online store.

💡 Real example

When we first implemented this process, I remember the case of a buyer who chose to purchase on credit to purchase an expensive home theater system. The bank quickly approved the loan, and all the necessary documents were completed through a courier. We received payment without any delays, and the client was satisfied with the convenience of the service.

📦 Returns

The only difficulty, like me I am convinced that there may be problems with the return of substandard goods. If the product turns out to be of poor quality, the store is obliged to accept it and return the cost to the buyer. However, the buyer who paid interest on the loan may face the need to return this interest through the court, since the bank does not return it.

In such cases, I recommend that you resolve the situation at the stage when the buyer addresses the problem. Advise the customer to replace the product. This can prevent your business from incurring additional costs and satisfy the customer in no time.

Advantages and disadvantages of refunding purchases on credit.

I encourage you to carefully consider the following recommendations to help minimize the negative impact of returning items purchased on credit.

Benefits

• 🚀 Increased sales: Research shows that implementing credit purchases can increase sales by up to 30%.
• 💼 Less burden on staff: Communication and data confirmation is carried out by the bank.
• 🌍 Expanded customer base: You will attract customers who cannot immediately pay the full price of the product.

Disadvantages

• ⚖️ Difficulties with returning interest: Return of interest may be required through the court.
• 🔄 Product return process: The store is required to accept returned products and provide a refund.

Best Practice

The introduction of credit purchases has become a powerful tool for our online store. I strongly recommend considering this option to improve sales and attract new customers.

How buying on credit increases your website traffic and average bill

When I introduced the credit purchase option in my online store, I was able to significantly increase site traffic and the average customer bill. This solution turned out to be very effective and brought many benefits.

Increase in average check amount and turnover

The history of my online store began with a small audience and modest sales. When I once decided to introduce the option of purchasing on credit, I immediately noticed how significantly the average check amount increased. Many clients who previously could not afford large purchases began to actively use this opportunity.

Increase in site traffic

I won’t say that success came instantly, but soon after introducing the lending option I noticed an increase in traffic website. Potential buyers began to visit the site more actively, look for information about credit offers, and ultimately purchased goods from us. By connecting several banking services, I ensured reliable cooperation, and this acted as an additional marketing ploy. 🛒

Benefits for the buyer

🧩 Availability of expensive goods: My audience got the opportunity to afford more expensive goods, which in turn increased the average bill.
🧩 Simplicity of registration: The ease and speed of obtaining a loan gives the buyer a motive to purchase the goods here and now.

Obstacles and risks

Of course, we cannot fail to mention the risks. A small percentage of clients may encounter difficulties in repaying the loan, and for us this means the loss of a solvent audience. However, I decided to take this step, and as practice has shown, the risk was minimal compared to the benefit.

Stages of introducing a credit offer

Here's how I implemented credit offers on my website:

1. Partnerships with banks: I contacted several banks and chose those who offered the most favorable conditions for my clients.
2. System integration: This stage took a little time, but everything went smoothly. We connected payment systems and tested them.
3. Staff training: My employees were trained and learned about all the nuances of the loan processing process.
4. Customer Awareness: I ran a marketing campaign to let my customers know about new features.

Don't be afraid to introduce new services to your online store. Buying on credit will help you not only attract more customers, but also increase the average check.

Final table with useful and unsuccessful practices

So, I would recommend all online store owners to implement purchases on credit . This step will be strategically correct and beneficial for both you and your clients.

Experience KitchenAid

KitchenAid has been providing the market with high-quality kitchen appliances for over 100 years. The main goal of the company is to simplify culinary processes and provide users with the tools to create culinary masterpieces. As part of its strategy "KitchenAid" strives to provide convenience and accessibility of its products to customers, as well as increase the average bill purchases and overall conversion in your online store.

Main goals and objectives

🌟 Increase in sales volume and average check.
🌟 Attracting new customers who are looking for convenient payment methods.
🌟 Increasing the overall conversion of the online store.

Key Problem

The main problem the company faces is the need to increase availability of its products to a larger number of users. Many potential clients, due to the high cost of the product, are thinking about purchasing it, but cannot afford to pay the full price right away.

Characteristics of the target audience

The target audience of the KitchenAid company includes people who:
🌿 Interested in high quality kitchen appliances.
🌿 They have an average and high level of income, but prefer moderate expenses.
🌿 Pay attention to convenient and modern payment methods.

Key points of interest to potential clients

1. 💡 Ease of purchase.
2. 📈 The ability to split a large amount into several payments.
3. 💰 Lack of tendency to immediately hit the budget.

Facts, figures and concrete results of the project

To increase the availability of products "KitchenAid" , it was decided to enable the possibility of purchasing on credit. In collaboration with a popular lending institution, the company has introduced online lending on its website.

Key results:

🏆 During the first three months of introducing credit offers:

• 📈 Sales increased by 25%.
• 🚀 The average purchase price increased by 30% thanks to purchases on credit.
• 🔄 The overall conversion of the online store has improved by 15%.

Benefits:

• 🌍 Availability of products to a wider audience audience.
• 🔒 Increasing trust in the brand thanks to transparent lending conditions.
• 💼 Increase in average revenue and total number of orders.

Disadvantages:

• 📂 Increased administrative tasks associated with processing loan applications.
• 💳 Dependence on the work and conditions of the credit institution.

"The launch of credit purchasing was an important step for "KitchenAid", which has made it much easier for many households to purchase premium kitchen appliances,” says the company’s CFO, Margaret Clark.

Stages of introducing credit offers

1. 📋 Market analysis and selection of a partner credit institution.
2. 🛠️ Integration of a lending system into the online store platform.
3. 📝 Regulation of legal and administrative aspects of cooperation.
4. 🚀 Launching a promotional campaign and informing customers about the new opportunity.

Necessary steps to connect online lending

1. 🖥️ Audit of the current infrastructure of the online store.
2. 📞 Negotiating with credit organizations.
3. 💻 Updating and integrating the necessary technical solutions.
4. 📝 Development of policies and conditions for clients.

KitchenAid has not only increased the affordability of its products, but also strengthened its position in market thanks to the introduction of purchases on credit. An integrated approach to problem solving and competent use of strategic tools allowed the company to achieve significant results and increase customer interest.

Frequently asked questions on the topic: Why buying on credit is the key to the success of your online store

Thank you for reading and for becoming more experienced! 🎉

Now you know exactly how buying on credit can transform your online store. You're ready to attract more customers, increase your average check, and achieve incredible conversions. Some may think that this is magic, but you know that this is a clearly proven strategy. You now have all the tools and knowledge to bring it to life. So go ahead, conquer the heights of your online empire! 🚀 Leave a comment below and share your thoughts!

Zinaida Rumyantseva, independent expert at Elbuz