The photography industry is going through a period of unprecedented change. Competition from smartphone vendors, combined with the impact of the pandemic, saw digital camera shipments fall to a new low of 8.9 million units, from 121 million units in 2010 (opens in a new tab). However, despite a drop in sales, camera prices continue to rise (opens in a new tab).
Rising shipping costs and chip shortages are also driving up camera prices. Indeed, earlier this year, Canon and Leica informed their customers that they could expect significant price increases on their products. As prices continue to rise, the financial pressure on street and online photography shops will also increase, which are already seeing customers abandon their shopping carts in record numbers.
Photography has always had a reputation as one of the most accessible art forms, with anyone being able to pick up a camera and capture the world around them. Yet, as price increases continue, there is a real risk that this art form will not only turn away from its accessible nature, but also continue on this cycle of steady decline.
Working alongside retailers in the photography industry, the Deko team has found that one of the most effective ways to combat this drop in sales is for retailers to provide their customers with access to a wide range of financing solutions.
Provide various checkout solutions
Many shoppers are increasingly attracted to stores that can offer them alternative payment methods suited to their needs. This is reflected in the growing size of the buy now, pay later market which in the UK was estimated at worth £5.7 billion in 2021 (opens in a new tab).
Different payment solutions, such as the retail financing services provided by Deko, allow customers to break down a large purchase into smaller installments. This fast and flexible form of financing frees up the buying power photographers need to pursue their passion. Simultaneously, it can help merchants reduce abandonment rates and increase sales with more purchases and larger basket sizes.
Focus on the right retail financing
For merchants, there is no single retail financing solution, and this is especially true for photography merchants. Every merchant has different needs and traditional retail funding offerings – like existing BNPL solutions – are not always suitable. For example, some retailers are looking to increase order value or drive repeat purchases. In this case, you might consider providing your customers with revolving digital credit.
This payment option offers customers the simplicity of Buy Now Pay Later and the functionality of a credit card account. Alternatively, your business model may be better suited to adopting a buy now, pay later option that allows customers to make purchases in more manageable installments over a longer period, such as 12, 24, or 36 month.
These solutions can also support shopping carts of up to £25,000, making these payment products ideal for the photography industry where the average price of a professional camera and equipment correspondent may exceed £8,000.
It is important for photography merchants to have a better understanding of the financing options available to them and what is best for their business and their customers. Buy now, pay later platforms such as Deko are well equipped to guide merchants through the options available to them and the payment solutions that would suit their business.
The next generation of buy now, pay later
Using the right supplier buy now, pay later not only benefits merchants, but also their customers. Traditional buy-it-now, pay-later services that rely on a single lender produce lower acceptance rates than newer multi-lender platforms that expand lending reach. Choosing a supplier backed by multiple lenders, such as Deko, gives customers the best chance of qualifying for credit and being connected with the right lender to finance their purchases.
Offering different payment options is a proven method to help reduce cart abandonment. With an average cart abandonment rate across all industries of almost 70%, that means seven out of ten customers looking to buy a new camera won’t complete their purchase. buy at checkout (opens in a new tab).
If industry retailers are to continue to offer cameras and photo kits, they need to reconsider the payment solutions they offer. Providing customers with a flexible checkout experience will reduce cart abandonment and expand the customer base at a time when the rapidly rising cost of living is forcing people to reconsider investing in new camera equipment.
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