Multichannel Merchant has posted some of the highlights of last week’s eTail East conference, including Live From eTail: Alternative Payments Becoming Mainstream.
What I found interesting from the session recap was the results that Brad Wolansky of Orvis.com shared regarding Bill Me Later’s impact on average order value. While credit card customers’ average order value is around $150, Bill Me Later customers AOV is $175. And customers who opt for Bill Me Later’s 90 day same-as-cash option spend ~$400.
267% higher AOV is impressive. It appears 90 days interest free is a strong incentive for Orvis customers. If Orvis’ competitors do not offer this option, this could be a significant advantage for Orvis – creating more loyalty among a higher-spending segment. And for high-ticket items, deferred payments are all the more attractive in this economy — the more interest expense there is to save.
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