When Is Buy Now, Pay Later Worth Adding?

[SophieR]

BNPL can lift conversion on higher-priced products, but it also adds fees and another checkout choice. At what average order value or customer demand level does it become worth testing?

 

[ElenaMoretti]

I would test it when the product price is high enough that customers mention affordability or abandon after viewing the total. Compare conversion and contribution margin, not just revenue, because the extra fee can erase the gain on lower-value orders.

 

[ElizabethParker]

I would test it when the product price is high enough that customers mention affordability or abandon after viewing the total. Compare conversion and contribution margin, not just revenue, because the extra fee can erase the gain on lower-value orders.

I’d probably test it once enough customers are asking for payment flexibility. If people are already asking whether they can pay in installments, that’s a pretty good sign that the option could be useful.

 

[ryanchristophermason]

Another thing to look at is whether the products are usually bought more than once. For higher-priced products with repeat customers, having a payment option like this could make checkout feel a little easier and more flexible.

 

[_MadelaineRose]

It’s worth adding once the business already has a steady source of sales and can handle the extra fees that come with BNPL. The downsides are easier to manage when the business is already doing well.

 

[Charlotte&AnneWilson]

It’s worth adding once the business already has a steady source of sales and can handle the extra fees that come with BNPL. The downsides are easier to manage when the business is already doing well.

Agreed. I’d say it makes more sense once the business has steady sales and can comfortably handle the extra BNPL fees. It’s easier to take on those costs when the business is already doing well.