Francesca shares details about the latest technology advances New Media Retailer is incorporating into online checkouts for retailers.
Video Transcript
Hello my name is Francesca. Thank you so much for joining me today for another quick marketing tip. Today’s tip is a new feature available in Shopify called Shop Pay.
Shop Pay is a cutting edge new e-commerce feature that helps stores drive sales.
It works like this. When customers wants to place a big order on your website, any order over fifty dollars they’ll have the option to spread that payment out over four interest free payments. Now you, the store, is still paid in full at time of checkout but you’re now able to offer your customers the convenience of spreading out that payment over a few months. Now this is a tool offered by a lot of big box stores so you now are able to compete even more and offer this great convenient tool to your customers.
Now of course anytime you can offer an added convenience to your customers that’s already a win. But there’s more. One of the stores we work with has already seen a 50 percent increase in average order value.
Leading finance companies like RBC capital markets estimate that these point-of-sale loans increase retail conversions by 20 to 30 percent which means more orders for you and an increase in average ticket sizes between 30 and 50 percent meaning bigger orders because now your customers don’t have to pay all of that out of pocket. They can split it up over a few months.
There is a slightly higher processing fee per transaction. It’s 5.9 plus 30 cents, and the higher fees are only applied to orders that select shop pay at checkout. Now this is a feature that you can turn off at any time in your Shopify account if you’d like to do so.
Thanks so much for joining me today for another quick marketing tip. Check back soon for more.