retailer-guide-afterpay_shutterstock

Retailer Guide to Afterpay

Take advantage of Afterpay to grow your business and get convert customers who might be on the fence about your products.

You might have seen Afterpay spring into every retailer out there seemingly overnight. If you’re trying to decide if it will be right for your business, this guide will take you through what you need to know.

How does Afterpay work for retailers?

As a retailer, the Afterpay signup process is quick and relatively simple. When you fill out the enquiry form, a customer service representative will contact you in order to discuss your needs with Afterpay. Afterpay works both online and in-store, so you can choose how it suits you best.

If a customer buys something online using Afterpay, they simply select Afterpay at the checkout, and once the customer has received their item, Afterpay will settle with you and assume any credit or fraud risk. The instalments that the customer pays go to Afterpay instead of you since Afterpay will pay the debt that is owed to you initially.

How does Afterpay integrate with my point of sale?

Afterpay integrates with a variety of point-of-sale platforms as well as ecommerce platforms that you might have used to integrate online sales into your website. Some platforms that Afterpay instantly integrates with include:

  • Commerce Vision
  • Futura4Retail
  • Infinity
  • Island Pacific
  • Neto
  • Shopify
  • Magento

Afterpay may also be able to assist you outside these platforms. Afterpay offers comprehensive technical support for the initial integrations and ongoing maintenance if something should go wrong.

What benefits does Afterpay offer my business?

Some of the features that can benefit your business with a merchant agreement with Afterpay include:

  • Set installments for customers. Afterpay informs you about purchase installment amounts and frequency to make it easier for potential customers to decide whether or not they want an item.
  • New customers. Afterpay gives you the opportunity to benefit from more sales and the possibility of an increased customer base.
  • Rise in repeat purchases. The likelihood of repeat customers to purchase from your business increases, plus they will be more inclined to spend more per transaction.
  • Payment upfront. As soon as the customer receives their item, Afterpay settles with their merchants quickly and automatically. There are no complicated processes or lengthy wait times associated with payment.
  • Name recognition. As Afterpay is currently used by over 1,400 retailers across the country, it’s clear to see that customers from all industries are a fan of it. You are able to benefit from this recognition if you incorporate Afterpay into your business.
  • Zero fraud or credit risk. This is really important. Although it might seem like Afterpay could be high-risk, Afterpay assumes all end-customer non-payment risk for every transaction. This takes you and your business off the hook and you no longer have to chase up defaulting customers.

How much will Afterpay cost my business?

The fees that you can be charged depend on your business's agreement with Afterpay. However, the fees below are a general guide as to what businesses can expect with an Afterpay agreement.

  • A $0.30 fee per transaction.
  • A commission rate fee that is applied per transaction. This can range from 4-6% based on your agreement.

Although $0.30 per transaction doesn’t seem like a lot when you’re selling your products for much more than that, it’s important to factor in the commission rate fee as well.

What interest-free plans does Afterpay offer shoppers?

Now that you’re convinced about Afterpay, you might have a few questions as to how it works for your customers. Afterpay is a credit line for customers, where they use it to buy items that they want right now (like what you offer in your store) and pay the money back later.

Customers make four payments made over an eight-week period, with the first payment taken at the initial purchase of the item. If they do not adhere to the payment schedule, they are charged late fees until they have paid off their instalment.

The eight weeks are interest-free, so the customer owes the instalments that are reflected on the website.

How do I start offering Afterpay at my store?

In order to start offering Afterpay at your store, you just need to fill out the online enquiry form that is available on their website. Some of the details that you need include:

  • Your ABN
  • Your Point of Sales (POS) provider
  • Your average order value
  • The total for your annual sales
  • The payment platform you use
  • Personal details, such as your name and address
  • Your industry
  • The type of business you have
  • What sales channels you use and whether they’re online, in-store or both

Once you provide all of this information and more, a representative will get back to you within the next 24-48 hours.

FAQs about Afterpay

Was this content helpful to you? No  Yes

Related Posts

Ask an Expert

You are about to post a question on finder.com.au:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com.au is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder only provides general advice and factual information, so consider your own circumstances, or seek advice before you decide to act on our content. By submitting a question, you're accepting our Terms and Conditions and Privacy Policy.

2 Responses

  1. Default Gravatar
    TraceyApril 6, 2018

    We do not have any point of sale computer system can we still sign up to afterpay we are in the Hair & Beauty industry

    • Staff
      JeniApril 6, 2018Staff

      Hi Tracey,

      Thank you for getting in touch with finder.

      Currently, having a POS is a requirement to signup with Afterpay.

      As a friendly reminder, while we do not represent any company we feature on our pages, we can offer you general advice. You can also talk to their customer service for more info about being a retailer in Afterpay.

      I hope this helps.

      Have a great day!

      Cheers,
      Jeni

Ask a question
Go to site