TBYB vs. BNPL __ Standing out from the crowd, improving product discovery and building lasting relationships to grow in a digital-first world are all online shops want.
It seems essential to find the best solution to achieve your business goals with e-commerce that supports your business model.
Some new and modern e-commerce solutions enable your customers to interact easily with your products.
In this article on Stage Marketplace, we introduce 2 business models and focus on differences between TBYB and BNPL. After reading this, you will find how to boost your business with the best e-commerce solution.
What is “try before you buy”?
“Try before you buy” is a premium solution by Stage Market place that provides a $0 dollar checkout for all shoppers. Once you use this option, You will have 7 days to try the products in the comfort of your home and only pay for the items you
Forget fitting room; try living room with TBYB
If you’re unsure whether to get the right size or you can’t decide which one fits better, trust us to try at home fee regardless of the number of items. In case you need it, we will handle all the returns for you.
Try before you buy or TBYB process is quick and straightforward:
- Add items you want to purchase on Stage Marketplace website and app
- Look for the “Try at home” button and click on it to make your order:
You’ll receive your selected product
- Try them at home during 7 days
You will be charged on your card only for the items you wish to keep. If you need to return a product you can get a free return label on the app.
There isn’t any limit to how many items you can order.
Implementing a Try Before You Buy experience helps stores increase sales while ensuring a positive experience for shoppers: they can safely try on or test out their products at home.
Regarding COVID-19, most shoppers don’t want to leave their homes to go to stores. TBYB allows customers to try out and interact with stores merchandise. Once stores integrate TBYB to their business, they unlock a new growth opportunity.
TBYB boosts customer retention
TBYB increases your share of wallet
TBYB engages more customers
TBYB supercharges your Salesforce
TBYB shortens the time-to-market
What is “Buy now pay later”?
“Buy now, pay later” or BNPL is a simple payment method for online shopping. Some shoppers who are determined to purchase a product with a final cost can’t pay for the whole purchase upfront and decide to abandon their cart. BNPL tackles this problem of affordability and access to credit.
This other e-commerce solution will give the user the chance to pay in installments. Usually, shoppers have loan length options. The time depends on the provider and the cost of the purchase.
To BNPL (Buy now, pay later), shoppers need to fill out an online application, qualify for the loan, select their payment plan, and make payments through the provider’s app until the balance is paid off.
Some popular BNPL companies are Affirm, Afterpay, Klarna, Zip, Sezzle.
The differences of TBYB and BNPL | TBYB vs. BNPL
TNBL and BNPL services can provide real-time credit checks at the point of purchase, offering pre-approval of the payment request. Although BNPL and TNBL sound like similar offerings, they address different business challenges. Here are some their characteristics:
TBYB helps brands convert hesitant shoppers interested in the product but struggling to pay upfront for something they are unsure about.
- TBYB brings more efficient marketing KPIs.
- The TBYB messaging drives increased ROAS and a reduction in CPAs.
- TBYB gets the product into the shoppers’ homes, so they can decide to shop it or not.
- With the TBYB method, the user’s credit card will be charged only for the item they keep.
- BNPL helps shoppers afford an item they know they want to buy.
- BNPL can have a negative impact on your credit score.
- BNPL could be a difficult experience to receive a refund if the product didn’t arrive. In other words, it can be hard to track.
- If you don’t make your payments on time with the BNPL service, you may be charged higher payment fees.
- BNPL can negatively affect your future loan applications.
- No rewards or cash back earned on purchases by BNPL
TBYB or TNPL, which one is better? TBYB vs. BNPL
As mentioned before, “Buy now, pay later” or BNPL is a financing arrangement that allows shoppers make purchases without paying upfront but in installments. And “Try Before You Buy” or TBYB allows customers to try products in the convenience of their own home and according to their test, decide whether or not they are keeping them, they can then send back any items they don’t want for free and only be charged for what they keep.
Both of them are convenient ways to buy products, but which one is better?
While are TBYB and TNPL are quick and simple solution, choosing one of them really depends on the situation because they address different business challenges.
First you should answer this question: “What is the problem I’m trying to solve?”
- If you have valuable products but you struggle moving sticky metrics like conversion, TBYB is the answer.
- If you want to reduce affordability barriers for customers purchasing a high price-point product, BNPL is a good option.
If you have a business, we recommend you strongly discover your target audiences. If your audiences and potential customers are people who know what they want but might not be able to afford it in one lump sum, BNPL helps you. Another use of BNPL is when your products are highly expensive.
In contrast, if your audiences are unsure about what they want to buy, provide them a TBYB option and expand your revenue. Stores with a TBYB solution lower the risk of an abandoned shopping cart by letting the shopper do a $0 checkout of the products they wish to acquire, increasing the conversion rate and average order value.
Stage Marketplace provides you with different finance solutions that can help boost your business. We help you navigate your path to e-commerce growth. If achieving your sales goals is your priority, join us soon.
We’re proud to provide a premium “Try Before You Buy” solution.