A store credit line can have big benefits for eCommerce. Here’s what you need to know.
Giving Ecommerce customers a store credit line allows them to buy items from webstores and pay the remaining balance later.
This might sound like an extraneous feature to provide, but establishing lines of credit for your customers drives notable results. For instance, credit lines tend to encourage larger size orders of higher priced items, and stimulate more repeat business.
Plus, when it comes to business-to-business (B2B) Ecommerce stores, credit lines are often expected. Many B2B customers need the ability to purchase goods on a credit line before managing their finances at scheduled times.
This naturally means many Magento merchants need to find a way to supply a line of credit to their customers. But thankfully, with Magento extensions that’s not very difficult to do.
With that said, here are the benefits of Ecommerce store credit lines, and how to establish one in your Magento store.
Benefits of establishing an Ecommerce Store Credit Line
Looking a couple decades back, before the conveniences of the modern digital age, B2B operations played out much differently (and slowly).
Company buyers weren’t purchasing their supply from websites, but rather making phone calls and holding in-person meetings over product catalogues. But since then the availability of Ecommerce has massively simplified those processes—and most people are pretty happy about that.
According to research from Forrester, 74% of B2B buyers find websites to be more convenient than anything else. However, with the cutting-edge tools available to nurture leads and transfer bulk amounts of vital data, that’s no surprise. What’s more interesting is how 59% of those same buyers would rather not engage with a sales representative at all.
Basically, the streamlined conveniences that B2B Ecommerce offers is a major reason why customers appreciate it. By providing the additional convenience of store credit line, not only will you elevate your webstore above any competitors who don’t, you’ll make your customer’s purchasing experience that much more enjoyable.
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1. Provide Customers with Purchasing Flexibility
When B2B customers consider their finances, purchasing decisions are often hesitated by the funds they are also allocating everywhere else.
From investing in startup capital for new projects, to paying for contractor salaries and general maintenance, when managing all their costs there are frequently circumstances where an Ecommerce store credit line is appreciated.
Even if used infrequently, offering a credit line still provides customers additional peace of mind that creditable funds are available to them as a customer of your website.
2. Supply Businesses with Better Cash Flow Management
Aside from the convenience a store credit line gives customers, it shouldn’t be under stressed how helpful the availability of additional capital can be for new businesses.
The ability for a business to control its cash flow is critically important, especially when it comes to newer companies. In fact, it turns that out 82% of small business failures come entirely down to cash flow problems
Because of this, many businesses make it a practice of securing credit before they ever need to use it. This means to even be considered by these kinds of customers, credit line options are a must for their vendors.
3. Inspire Organic Customer Loyalty
Aside from drawing in the kinds of B2B customers that only shop where credit is supported, an Ecommerce store credit line also naturally builds repeat shoppers.
Consider how nearly every online business accepts payments via credit card, which can be used to buy virtually anything at any place. While a store credit line also offers the ability to pay off purchases over time, unlike a credit card, it only works in your specific webstore.
Because customers are only able to use store credit for your products, this essentially makes your credit line perform like a digital loyalty program. Instead of looking for other providers, businesses are organically incentivized to keep using their existing credit lines to get what they need from your store.
4. Improve Company Image and Customer Relations
Finally, aside from the practical benefits of establishing a line of credit for your Magento store, it also comes as a welcome show of trust for your customers.
Trust plays a major role in all relationships, including professional ones. In this manner, fostering a business environment in which customers feel can depend on your store will further enhance the strength of your brand.
Establishing a Store Credit Line with Magento
As mentioned earlier, through the Magento platform’s extension capabilities anyone can enable a store credit line with relatively little effort.
Searching the Magento marketplace, you’ll come across multiple store credit line extension options to browse between for purchase. Of course, when searching for the extension you want to use, it’s important to ensure your picking a reliable one.
(Additionally, feel free to check out the Magento Store Credit Line extension we’ve developed for Magento below)
Install your Extension
After selecting the extension that’s best suited for your webstore, you’ll still need to install and configure it on your website.
Follow the documentation the developer of your extension provides to complete the installation, and to avoid potential compatibility errors, ensure you backup your website first and try loading the extension on a test site. If you’re unfamiliar with the extension installation process, an overview of the basics you need to know is available here.
For those for looking extension help, or assistance with Magento in general, CreativeMinds offers Magento extension installation services and consulting.
Magento Store Credit Line Extension
Available in versions compatible with both Magento 2 , this extension lets store administrators establish customizable credit lines.
With them, customers are able to manage their credit balance and monitor personal transaction histories through an added dashboard page. They can also make purchases at any time using their credit line, with ‘store credit’ listed as a payment option.
Store admins choose whether to limit credit amounts and modify payment scheduling for all accounts, or only specified customers. Options for both automated and manual invoices are also included to notify and remind customers of new and existing balances.