How to Increase Sales and Conversions with Financing on Your eCommerce Store
Trevor here with eCommerce Paradise.
Today's episode is about financing.
Offering financing on your dropship eCommerce store is a good idea, especially if you sell high ticket items. Many customers won't have the money or won't want to be spending that much money the time they want to buy the product. If you offer financing options, people will be more likely to have a better way to check out and save themselves from spending cash or putting it on their credit card and pay it off in 30 days, six months, or even years. The monthly payments can be under one hundred dollars, which means that for them, it's practically like adding on another little bill to their life, whereas they can get that product that they really want right from your store. Adding financing is a pretty simple thing. There's a couple of options that I use nowadays. And the first one is PayPal.
Now, PayPal is interesting because you actually have to have the customers sign up for it outside your store. They can't sign up through the checkout process. It's a little bit clumsy in the way that it's set up and integrated with your Shopify store or other eCommerce storefronts. You have to let the customer know that, and you probably should give them a link as well. That whole process takes them off your website. Bringing them back is a little bit more painful later on. At any rate, PayPal does offer a six month, zero percent financing program. It doesn't cost you as a vendor anything extra. I recommend that you consider adding some banners to your website from PayPal. Go and type into Google, PayPal financing banners, you'll find a link to where you can log into your PayPal account and get those financing banner codes. Add them to your product page, collections pages, blog posts, sidebars, footers, headers, everywhere. Put it all over the place. The more your customer knows that you offer financing, the more likely they are to put themselves through the checkout process.
So another great financing option you can offer your customers is Klarna. I'm using Klarna now because they're really easy to integrate, and they have some great automation tools setup. Klarna integrates itself with your Shopify checkout. When you have the customer go to checkout, they can choose as a payment method Klarna. And then right there, they'll be applying for Klarna in a little pop-up, and then they'll get approved or not. If they get approved, they can complete their purchase and the purchases then put onto their client account. You, as the vendor, get paid out right away. Klarna just takes a little bit of an extra fee than you normally would pay through PayPal. Usually, it's close to like one percent, and clients do their own fraud prevention. You don't need to pay anything extra for any fraud prevention apps. Klarna will pay you out a little bit later than other apps than the other merchant processing programs will. Instead of three to four days, you'll get it like five to seven days. But that's about it.
You should remind them of the amount they would be paying per month if they were to add their entire card to their purchase if they got more than just one product. In check out, they have the option to slice it with Klarna. That's what they call it, slicing with Klarna. It's a really good, easy system to follow. Again, you want to add banners all over your website - your home page, informational pages, blog posts, collection sidebars. You can do this just by adding them into liquid templates; you don't have to add them one at a time. Just go to the theme settings and edit the code and go to the liquid page templates. You can find the appropriate spot to add the code into. You can put the code right in there. It'll show up on every single page as a banner. You can do it on the sidebars as well, and I highly recommend doing that. And then, of course, put some emails into your autoresponders that talks about financing and then go over and adjust your Facebook.
Financing is a big deal depending on the niche. In some niches, people have the cash to blow, like toys. In comparison, they don't have in some niches. The demographics show that they don't necessarily have a ton of cash to blow, and they are relying on financing a lot of the time to get these products that you sell.
Do your research. I highly recommend checking out Facebook audience insights in their demographic section of how much people make. I recently found out that one of the niches I sell in that the people I thought were going to be able to afford it actually, more often than not, can't afford it. And so financing really was required. If I didn't do the financing, then we really wouldn't be where we are today with the sales number. I'm really happy that we did that, and we did all the integrations possible.
I'll probably be making a course on that separately, focusing on how you can integrate all the financing stuff into your website. Something to be part of my conversion rate optimization course. But overall, this is just a heads up that you should get some financing on your website, especially if you sell high ticket products. You have to promote the crap out of it. You have to get it all out there into all your marketing messages. Put it all over your website, talk about it a lot, and link around to it. One more tip is to actually create a financing page and provide step by step instructions on how to check out, because some people, especially if they're older, might not have any idea how it works. They might not want to figure it out on their own, and they might go to a different website that will actually explain it to them. If you are interested in getting more sales through this stuff, give them step by step how-to instructions. Consider even recording a screenshot of a video of yourself checking out on your website. That way, they'll really have no questions. You're not going to get any of those phone calls saying, "Hey, I want to order this product, and I see you offer financing, but I have no idea how to use it." You're not going to get those because if you link to your instructional page from all your product pages, it'll be really easy for them to figure that out independently.
Making the shopping experience easy. Make it easy for them to get the financing they need to get the products that they want. Make it a fun experience for the customer. Take all this into mind, get out there, and get some financing in your store. And if you do, make sure you get out there and promote it. Hopefully, it boosts your sales. The only thing you have to be mindful of is your cash flows. It takes a little bit longer to get it out and that little bit higher fee as well, but then again, for a little bit extra fee in time, you can get a lot more sales, which in the long run will help you grow your business.
Check out my other podcast and YouTube videos about outsourcing. I made automation and scaling your business because all those things matter, and financing is one big part of it. Check out ecommerceparadise.com for courses and coaching and some cool merchandise. We'll see out there.
eCommerce Paradise was created by Trevor Fenner of Seattle, Washington in 2015 to help you, the entrepreneur, to start and scale your own eCommerce business selling high-ticket products online with the drop shipping fulfillment method so you can make more profit per sale, have a sustainable and evergreen online business, get started with very little upfront investment, and live a location independent lifestyle. Trevor owns multiple 7-figure High-Ticket Drop Shipping eCommerce stores and is a digital nomad, traveling the world while working remotely with the help of his team of over 10 virtual assistants from around the world. Trevor is currently located in Bali, Indonesia. Trevor is also a passionate skateboarder, surfer, scuba diver, photographer, environmentalist, outdoorsman, fitness and tattoo enthusiast.
AFFILIATE DISCLOSURE: Some of the links on this page may be affiliate referral links. I will get a commission from the vendor when you make a purchase after clicking them at no added cost to you. As a result, many of them also provide you with a special discount just for using my link. You can go directly to their support if you have any issues with their software or product.
Step-By-Step Training for High-Ticket Drop Shipping
Here are the next steps you'll need to take to start your high-ticket dropshipping business:
- Lesson 1: Research The Market And Choose Your Niche
- Lesson 2: Start Your Shopify Website and Legal Business Structure
- Lesson 3: How To Find And Recruit The Best Suppliers
- Lesson 4: Optimize Your Shopify Website and Sales Funnel
- Lesson 5: Launch Your Store With Paid Traffic
- Lesson 6: How To Manage Your Business
- Lesson 7: Automate and Outsource Your Day-To-Day Work
Resources for Starting A High-Ticket Drop Shipping eCommerce Store
These are the resources I've created to help you start your own high-ticket dropshipping eCommerce store:
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