Does “Try Before You Buy” Have A Shot At Being The Next BNPL?
The buy now, pay later ( BNPL) category has skyrocketed in popularity over the past two years, with many small and medium-sized businesses (SMBs) embracing digital channels and flexible payment options for driving sales and engaging new and returning customers.
The offering caters to the millennial and Gen Z demographic ( the average Afterpay customer’s age is 33), who not only account for a rising portion of retail spend but are also budget-conscious and debt-averse than older generations. But, while BNPL has emerged as a critical tool for brands to increase average order value (AOV) and attract shoppers that prefer to pay over time, there is another opportunity for brands and retailers — try before you buy.
Just like BNPL, try before you buy can increase AOV and can be offered for a variety of product categories, including apparel, home goods, electronics and luxury goods.
The difference between buy now, pay later and try before you buy is that the consumer isn’t necessarily worried about the cost of the item but more so the quality and if they will actually like it.
Brands that have already hopped on try before you buy
Direct-to-consumer ( DTC) bra brand, ThirdLove, offers its own try before you buy service, giving customers a free 10-day trial period. All the shopper pays upfront is $5.99 for shipping. If the shopper likes the bra, they can just keep it. If the bra isn’t a perfect fit, the shopper can return it within ten days. All returns then go to women in need.
Based on sales, ThirdLove has become the third-largest eCommerce retailer of bras, following competitors such as Victoria’s Secret and Aerie, according to NPD.
Similarly, Warby Parker offers a home try-on option, allowing shoppers to try on as many as five frames for five days for free. Once the buyer knows which frame they like, they can customize it online and expect a fresh pair of glasses in the mail.
eCommerce giant Amazon also has its own try before you buy offer, enabling Prime members to try eligible women’s, men’s, kids, and baby clothing, shoes, and accessories before they buy them. Members have seven days to try the items at home and are only charged for the items they keep.
Khloé Kardashian’s Good American teamed up with BNPL service provider, Klarna, to offer up the best of both worlds, allowing shoppers to try before they buy and then pay for items over time. Through the program, shoppers can pick out the items they want, try them for 21 days and on day 30, Klarna will charge the shopper for all of the items they decided to keep.
The potential of try before you buy
Like BNPL, try before you buy is full of potential as it powers merchants to deliver a unique shopping experience to their customers — one where customers don’t have to cough up cash upfront and still experience the quality of the product.
With few players in the space currently offering it, try before you buy presents a fresh opportunity to offer a differentiated shopping experience that drives customer engagement and conversion.
Are Buy Now, Pay Later Solutions Tainting Luxury? ThirdLove Is Gunning For Victoria’s Secrets Customers
Originally published at https://retailbum.com on March 8, 2022.
