As consumers look to reduce holiday season costs, BNPL is fast becoming an alternative way to save money in the short term.
According to Business Wire, Adobe Analytics predicts that BNPL (Buy Now Pay Later) payments will reach a record high this holiday season—increasing 16.9% from 2022.
BNPL was also a big player in Amazon’s October Prime Day event, which was their most successful so far.
Furthermore, Adobe Analytics expects significant discounts this holiday season, predicting that toys could be discounted as much as 35%, electronics by 30%, and apparel by 25%.
Discounts in these categories are unsurprising, considering that Adobe’s Digital Price Index (DPI) has tracked a decline in online prices for the last 40 months (as of September 2023).
According to Adobe’s DPI, between August 1st, 2022, and August 1st, 2023, prices are down by approximately 3.23%, with electronics declining the most at an enormous 11.64%.
However, experts disagree on what to expect this holiday season, with or without newly emerging payment methods such as BNPL.
While some expect a bigger-than-ever holiday season, others are concerned that shoppers have been hard hit by inflation and other economic woes that may limit their spending.
Conversely, there is also the opinion that it could be highly profitable if merchants can cater to cash-strapped shoppers looking for holiday season deals, whether or not they add BNPL as a payment option.
However, arguably, BNPL can be seen as a workaround for around high prices for shoppers.
If BNPL continues to grow this holiday season, it will solidify its status as a viable payment alternative and likely only grow in popularity in other major shopping events.
Merchants should consider adopting BNPL as a payment option to not miss out on more customers as it grows in popularity among shoppers.
With Sellercloud’s omnichannel platform, sellers can access a wealth of repricers integrations to keep product prices competitive across multiple marketplaces throughout the holiday season.
On top of that, integrations with the top shipping companies and top-shelf inventory and warehouse management software help keep merchants efficient, enabling them to streamline operations, reduce blunders, and save money.