Alibaba offers delayed payment options to EU customers
What: It is now possible to pay at or after the delivery for EU customers ordering on Alibaba.com.
Why it is important: Instead of trying to change the logistics (Alibaba orders take between 10 and 15 days to be delivered as they are shipped from China), why not change behaviours by making new options appear as benefits (while they are simply adaptations to basic customers’ expectations)?
Chinese internet giant Alibaba has started allowing customers in Europe to pay for purchases on its international e-commerce platform, AliExpress, only after receiving their merchandise in an effort to boost global sales as growth slows at home.
Fintech firm Splitit Payments will join with Ant Group's Alipay to provide a delayed-payment option to customers of AliExpress, which sells consumer products to more than 200 countries.
The service, called "Pay After Delivery," will allow customers to pay for merchandise in instalments via their credit cards. The service will first be rolled out in Germany, Spain, and France and could expand into other international markets.
AliExpress has seen a decline in orders in Alibaba's last three fiscal quarterly reports, due to a weakened euro, changes in EU tax rules and supply chain disruptions caused by the Russia-Ukraine war. Chinese e-commerce firms are looking more abroad to bolster sluggish sales growth at home, as a result of Covid-19.
Alibaba offers delayed payment options to EU customers
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