March 7, 2008, 12:00 AM

Alternative payments boost average order value at Bare Necessities

Online lingerie retailer Bare Necessities has experienced an increase of about 3% in average order value for orders placed through the Bill Me Later payments web site, the retailer says.

Online lingerie retailer Bare Necessities has experienced an increase of about 3% in average order value for orders placed through the Bill Me Later payments web site, the retailer says.

Although the effect on order value varies month to month, shoppers typically spent more when they purchased products through the shopping section of BillMeLater.com in response to a promotional offer, says Keira Lim, director of customer acquisition for BareWeb Inc., which conducts business as Bare Necessities. “We find that order values are about 3% higher when they originate through the Bill Me Later site in response to promotional programs,” Lim says. Promotions have included free shipping and special sales on certain brands, she adds.

Bare Necessities, No. 250 in the Internet Retailer Top 500 Guide, also processes orders for customers who choose the Bill Me Later option in the checkout section of BareNecessities.com, but hasn’t determined how that affects order value, Lim says. Because shoppers are already in the checkout phase when they choose Bill Me Later on its own site, it’s difficult to determine whether shoppers would complete a sale without the Bill Me Later option, she adds.

Bill Me Later is a billing service from Bill Me Later Inc. A shopper who chooses this option clicks the Bill Me Later icon during the checkout process, enters her date of birth and last four digits of her Social Security number, then receives an e-mailed invoice within five to 10 days. At that point, the shopper can pay through BillMeLater.com in an automated clearinghouse direct debit transaction, through her own bank bill-pay system or by mailing a paper check.

Bare Necessities offers its customers Bill Me Later as the only payment alternative to major credit cards, though it is considering eBay Inc.’s PayPal third-party payment service and Google Inc.’s Google Checkout, which can be tied to Google search marketing programs.

To participate as a merchant listed on BillMeLater.com, Bare Necessities also works with the comparison search engine Become.com, which powers Bill Me Later’s comparison shopping feature. Shoppers on BillMeLater.com can search for a product to produce a list of merchants that accept Bill Me Later payments.

Bare Necessities uses its internal technology and marketing personnel to manage its bids through Become.com for placement in search results on BillMeLater.com. Although it pays search fees to Become.com in addition to commissions on the value of purchase transactions to Bill Me Later, Bare Necessities has realized a strong return on investment, Lim says.

“We’re getting good ROI and have been pleased with our customer acquisition opportunities,” she says.

comments powered by Disqus

Advertisement

Advertisement

Advertisement

From IR Blogs

FPO

Patrick Smarzynski / E-Commerce

What the changes at eBay mean for sellers

The online marketplace introduced new rules for sellers last month. It’s crucial that sellers understand ...

FPO

Mark Feinstein / E-Commerce

A quick guide to global e-commerce opportunities

Consumers in many countries are buying more online each year. Understanding the nuances of each ...

Advertisement