Having Afterpay on items priced from $7. eg $7. $9. $14. $18. ... etc
Hi - can i get people's thoughts and findings on the benefits or not of increased sales if you add Afterpay to low price items - eg clothing from as low as $7. to eg Pottery from say $14. Can anybody confirm if people use Afterpay on items say from $5. to $40. ? and do you definitely have more buyers on those low $ prices. I am wondering whether to add the Afterpay option (meaning i would probably add say $1-2 more to start or buy now price to cover the increased fees). Thoughts and findings please - thank you :)
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For me, people, unfortunately definitely use Afterpay on low value items. I've found that in previous times, Afterpay made up maybe 15-20% of my sales, but now easily half of my sales use Afterpay (a sign of the economy I guess.)
In saying this, the bulk of my sales are around the $20 mark, so it can be absorbed by the ever decreasing profit margin - I imagine this could be even worse with low ticket items which could have less of a margin to absorb this.
I know a good portion of my sales wouldn't happen if I didn't accept Afterpay, but by raising your prices to accommodate Afterpay fees, I would personally be concerned about loosing people who aren't using Afterpay. A possible alternative might be to state in the description (or even add a 'Other' payment option,) that you can make a new listing with Afterpay but with an extra fee to accommodate Afterpay fees.
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Thank you Shane for your reply, very helpful. If i was to add Afterpay and adjust my prices up just a little i am not too concerned as i tend to price them on the low side at the moment - thanks again for your insight - really appreciate it.
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Callum Community SuperuserEditedHi Vicki. I don't offer afterpay unless requested, then add it with the increased cost to cover the fee. For low value items I suspect some people just use it without really realising how much it costs the seller. It sounds like you have 1 off items. If you did happen to have multiple identical items you could run your own little trial to see which works best.
Widget X without afterpay $10 buynow. Widget X with afterpay $11 buynow. Then just keep a record of how many sales are made of each item.
PS. If I see an item I want and notice the seller offers afterpay, I ask for a discount if I DON'T use it to buy. I think others do this as well. So if you do decide to activate it you might want to be prepared for those questions.
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