Luxury goods online retailer JomaShop has seen sales jump more than 40% year over year, and average order value spike nearly 200% thanks to a new e-commerce platform and unique credit offering.
The retailer is running the Magneto's e-com platform with Affirm’s pay-over-time financing solutions integrated, enabling consumers to purchase goods and services from online retailers with simple, transparent and honest financing options.
Affirm lets shoppers pay for purchases across multiple months with transparent, simple interest loans as opposed to traditional credit products that charge compounding interest, fees, or come with promotional offers that transition into higher rates and fees. The Affirm extension for Magento 2.0 integration features support for new capabilities, including Affirm Multiple Financing Programs (MFP) designed to help e-commerce retailers utilize different consumer financing options for specific products, product categories and carts.
Thanks to the new platform, JomaShop is experiencing unprecedented growth, and general manager Osher Karnowsky agreed to participate in the below Q&A with RIS News to highlight its benefits and the company's trajectory.
Jomashop is growing by leaps and bounds. Can you share your growth strategy? And how are you able to connect with today's fickle shoppers?
Our goal has and always will be to earn the trust and satisfaction of our customers. We understand that this means providing the perfect combination of competitive pricing, the right product curation, stellar customer service and loyal commitment to our customers.
As a luxury retailer many of your customers purchase on credit. How is the Affirm platform helping in this regard?
Before integrating Affirm, Jomashop offered all the standard payment methods: credit, debit, PayPal and Checkout by Amazon. In general, they were fine, but Affirm meets a different need. With Affirm, there’s suddenly a tremendous opportunity for customers to buy something they really want, but can’t lay out all the money for at once. For them, paying over several months at reasonable interest rates is very attractive and has been a great success.
With Affirm, we can help customers feel comfortable about buying something that has a higher price tag. It’s just common sense. If you can afford $500 up front, and you have the option to spread payments over time, you’re more likely to push that limit even more. It’s good for our business, but even better for our customers because they’re getting something they really want that they wouldn’t have been able to buy in the past — and all in a responsible way. One thing only Affirm lets us do is offer 0% financing, which lets us use payments as a marketing tool.
What contributions has the combination of Affirm and Magento made to the business and the growth you are seeing?
Both combine to increase sales and ROI. Magento helps us deliver a state-of-the-art e-commerce presence to showcase and sell our watches. It delivers features that entice our customers while enabling us to more effectively track business metrics. In fact, we saw our online sales jump by more than 40% year-over-year in 2015, largely on the strength of the Magento platform.
Affirm helps makes our products more affordable for consumers, enabling them to buy sooner and enjoy the benefits of the products much more quickly. Since we started offering Affirm, our average order values have increased by nearly 200%, and sales conversion rates have improved by 7%.
What kind of features does the Magento platform offer that is helping you connect with shoppers?
Customer experience means everything, and our ability to quickly innovate and to personalize those experiences across digital channels has been key to our success. It is a great testament to the flexibility and scalability that only Magento can provide.
More specifically, Magento delivers:
· A walk-through checkout process
· Faster page loading speeds
· Refreshing shopping experience (faster shopping with fewer clicks)