There has been a buzz for the last couple of years with Afterpay changing the way people purchase products online. After only a few years it now has over one million users. It is particularly popular with millennials who make up 75% of their client base.
Afterpay's motto is Shop Now. Enjoy Now. Pay Later. It is essentially a modern form of lay-by. However, you don't have to wait until you pay for the goods to enjoy them.
It is estimated, depending on your business, that conversion rates (ie the percentage of people who come to your website and go on to make a purchase) can increase by 30%. In addition, people are inclined to spend more when they use Afterpay. In fact it is estimated that they spend up to 60% more.
So is Afterpay a good option for your business?
1. How Afterpay works for your customers
Afterpay is easy for your customers to use. They simply select the Afterpay option at the checkout on your online shop. Note that Afterpay is limited to the purchase of goods up to the amount of $1,000.
Your customer will pay the first of four installments upfront to Afterpay at the point of sale. There are another three installments each fortnight that need to be paid.
One of the major benefits of Afterpay is that if all the installments are paid on time, there is no further cost to your customer.
If your customer misses an installment there is a $10 fee payable to Afterpay. If the installment remains outstanding 7 days after it was due then there is another $7 fee.
2. How Afterpay works for you
Within 48 hours of the purchase, you will receive the full amount of the purchase from Afterpay. Important to note is that Afterpay assumes the credit or fraud risk.
The fees for using Afterpay are a flat 0.30c per transaction and a commission rate of between 4% and 6%.
3. How to install Afterpay onto your online shop
The first step to get Afterpay onto your Online Shop is to complete their enquiry form. You will need to give provide such information as your website address, your industry, annual sales, and average order value. This means that you need to have your website up and running before you can get Afterpay onto your website.
Once Afterpay has approved your business, they will need access to your website to install Afterpay. Once Afterpay has been installed, do a check to make sure everything is working correctly.
4. Are there any alternatives to Afterpay.
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Dynamic Websites is one of Melbourne's leading web design companies for small and medium sized businesses, based in Hawthorn. We understand what it takes to get a business online. We specialise in providing exceptional web design services and digital marketing services. Our digital marketing expertise extends to Google AdWords, search engine optimisation, content marketing, social media marketing, email marketing and blog writing.