Shopping online must be convenient. To keep your customers coming back to your store, you need to offer them a hassle-free shopping experience. How’s the sound of having a lightning-fast checkout with multiple payment options, including the possibility to Pay later?
Gymshark noticed that their customers were longing for this type of smoooth solution, and that’s when they reached out to Klarna.
“We’re one of the UK’s fastest-growing companies, but in order to stay at the top of our game we need to constantly look at ways to improve. Introducing Klarna’s Pay later feature was a natural next step for us to make sure we give our community the best possible shopping experience. We want to make shopping with us easy, and that’s exactly what Klarna helps us do”, says Niran Chana, Trading Director at Gymshark.
With Klarna’s Pay later option, customers get the flexibility to pay for their purchase 30 days after ordering. This means that the Gymshark consumers can access new and exclusive gym-gear without fearing their favourite pieces will sell out. The new service allows them to try items on at home, keeping only what they love, before parting with a single penny. As a merchant, however, you receive the money straight away while Klarna takes all the risk, leaving you free to manage the rest of your business.
Ditching that risk and admin is one benefit of using Klarna, but Gymshark could also see an immediate increase in sales. As for many other online retailers, Black Friday is huge for Gymshark. That’s why they were really eager to get Klarna on board before then, and they’re happy they made it in time.
Average order value up by 33 percent
After the launch with Klarna, their average order value increased by a whopping 33 percent. And this was not only during Black Friday.
“There’s been an evident uplift since we started using Klarna, not just on Black Friday, but also in normal trading periods. You do see obvious incremental spend and a rise in the average basket value,” Niran Chana points out.
But if Klarna makes returns so smoooth for consumers, won’t that also increase the costs for merchants? Well not necessarily, according to Gymshark.
“One of the areas that I was really keen to keep an eye on was the impact on returns. Were people just spending for the sake of it and then returning their items? But we have not seen any real hit there,” Niran Chana says.
It’s all about smoooth (yes, with 3 ooo’s). Klarna is Europe’s leading payments provider and a newly-licensed bank, which wants to revolutionise the payment experience for shoppers and merchants alike. Founded in Stockholm, Sweden, in 2005, the fintech unicorn gives online consumers the option to pay now, pay later or spread payments over time – offering a trusted, frictionless and smoooth checkout experience.
Klarna now works with over 130,000 merchants, including ASOS, Topshop, H&M and JD Sports in the UK, to offer payment solutions to users across Europe and North America. Klarna has 2,000 employees and is active in 14 countries.