Minimize supply chain pain by offering longer terms

Warehouse stocked with merchandize in cardboard boxes with man and woman in the foreground checking clipboard, looking at inventory projections

With supply chain blockages creating new challenges daily, you may be facing hard decisions about raising prices and preserving margins. While higher prices could deter customers just as the holiday shopping season arrives, you can soften the impact for many shoppers by offering pay-over-time plans—especially with longer terms.

The sticker shock of an $1800 sofa, for example, can put less stress on a shopper’s budget when the total cost can be divided and paid over 18 months.

Offering longer terms (beyond 12 months) is a good way to help shoppers retain more spending power despite rising prices in the current economic environment. The resulting lower monthly payments can reframe the total purchase price in a more budget-friendly way. For example, the payments for a high-tech piece of fitness equipment could become similar to a monthly gym membership.

You can unlock maximum benefits from longer terms by making sure shoppers know they have a pay-over-time option before checkout. Onsite banners, messages on product display pages, and social media placements are just some of the ways you can direct attention to the option of longer terms early in shoppers’ decision process.

Displaying as low as monthly payment calculations alongside an item’s price is one method. This can reduce friction at checkout when shoppers see they don’t have to pay the total cost immediately. After seeing a comparison display—like these from Casper and Room & Board—customers may also opt to upgrade or add another item they might not have bought otherwise.

The displays can increase average order value (AOV) for your business, as shoppers discover they may be able to afford more if they spread the payments over time. In fact, furniture/homeware businesses that partner with Affirm to offer pay-over-time options saw an average 89.5% lift in AOV during September.

The predictions of supply chain pain will likely limit the discounting options of many retailers in the coming months. But there is a way to reduce the impact that higher prices may have for your customers and your business: offering payment plans with longer monthly terms from Affirm. It may be just the thing to brighten your holiday season.

Learn more about how Affirm can help increase sales for your business.

Payment options through Affirm are provided by these lending partners: affirm.com/lenders. Your rate will be 0–36% APR based on credit, and is subject to an eligibility check. Affirm Pay in 4 payment option is 0% APR. Options depend on your purchase amount, may vary by merchant, and may not be available in all states. A down payment may be required. For example, a $800 purchase could be split into 12 monthly payments of $72.21 at 15% APR, or 4 interest-free payments of $200 every 2 weeks. The Affirm Money Account is held with Cross River Bank (CRB), Member FDIC. Affirm is not an FDIC-insured bank. FDIC insurance covers accounts held with CRB in the event of a CRB failure. California residents: Affirm Loan Services, LLC is licensed by the Department of Financial Protection and Innovation. Loans are made or arranged pursuant to California Financing Law license 60DBO-111681. The Affirm Card is a Visa® debit card issued by Evolve Bank & Trust, Member FDIC, pursuant to a license from Visa U.S.A. Inc. The Affirm Card is not available to residents of U.S. territories. The one-time-use Affirm virtual card is issued by Sutton Bank, Member FDIC, or Celtic Bank, pursuant to a license from Visa U.S.A. Inc. Affirm, Inc., NMLS ID 1883087. Affirm Loan Services, LLC, NMLS ID 1479506. For licenses and disclosures, see affirm.com/licenses.