Irina Bordea, head of marketing for Deko, explains in her own words why now is the right time for jewellery retailers to utilise tech to boost online sales.

For centuries, jewellery purchases have punctuated a person’s life unlike any other transaction. However, these products usually carry a high price tag, reflecting the significance of the life event they so often celebrate, but nonetheless representing a considerable outlay for the customer – all the more challenging as living costs continue to rise.

Global eCommerce growth, which will be worth more than $7 trillion by 2024, catalysed by Covid’s impact on consumer shopping habits, has seen Buy Now Pay Later (BNPL) products soar in popularity over the last few years. However, these products, although great for smaller transactions, are often far too rigid and limited when it comes to the jewellery sector. As a result, low conversion rates, frustrated merchants and unhappy customers are all too common.

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Understanding the payment landscape and identifying the right BNPL option is, therefore, essential for jewellery retailers. With better and more suitable BNPL solutions, jewellers can increase their conversion rates, boost their revenues and offer their customers the flexibility and the support they need, especially in the current financial climate. 

The question that then naturally arises is – what are the best finance options for this sector? 

The path to finding the right BNPL provider 

Over the years we have seen the capabilities of BNPL products develop, but this progression has been confined mainly to the increased flexibility of repayment terms. One issue that still exists is limited basket size coverage and low acceptance rates. This is because traditional BNPL products are supported by a single lender who has a limited credit appetite. However, lender aggregation can overcome this challenge and provide merchants with comprehensive basket size coverage and higher acceptance rates.

This is why platforms like Deko, with its panel of lenders and its ability to offer finance up to £25,000, are the future of the payment landscape. Deko’s multi-lender platform has a broader range of risk appetite, which means it can match the right lender with the right consumer ensuring that more customers will have their applications accepted. 

In addition to that, with help from a prequalification tool, the platform reduces the tendency for consumers to abandon their online purchases before checkout. This flexibility fills a gap in the BNPL market where traditional offerings have failed to meet the needs of both merchants and consumers.

By integrating with products like this, jewellery retailers can improve customer relationships, increase the number of successful transactions and ultimately drive revenue. 

Taking fintech innovation to the next level

The fintech industry is fast evolving and with evolution comes choice, innovation and ultimately better products. Combined with the accelerated growth eCommerce has experienced due to the pandemic, jewellery retailers now have a perfect storm of opportunity to utilise tech to boost online sales. However, knowing how to navigate the landscape and understanding where the BNPL industry is headed is paramount. 

Equipping businesses with the right technology will allow retailers to thrive while providing their customers with the right tools and services they are looking for. The increase in the cost of living will act as yet another catalyst for innovation within the industry. And merchants, like BNPL providers who quickly adapt, will gain a competitive advantage that sets them apart from their competitors in the years to come.

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