Klarna launches comparative shopping service with the aim of becoming a de facto growth partner for merchants

Without Europe’s most valuable private fintech, it seems that you can’t go for more than a few days. Clana Get the ink.that is large-scale check, Celebrity CEO For that day, new function, Job creation, Technical glitches Have the user log in to another user account or student Received contact from a debt collection agency, Klarna is everywhere.

In a nutshell, BNPL

In a world plagued by layoffs and financial uncertainty, Klarna’s Buy Now Pay Later model is a compelling offer. The concept is simple. Instead of cashing out at Till or checkout, Klarna can pay the retailer on your behalf and repay within weeks or months. BNPL does not mean that you get any discount at the time of purchase, it is just a matter of cash flow management.

As an added benefit, BNPL is a free way to get credit when properly managed, as opposed to traditional credit cards, which are likely to charge interest and fees. So, if your BNPL provider isn’t charging you, in Rod Tidwell’s words, “show me your money.” The money is in the cuts that Klarna takes from all the products that help retailers sell. The pitch here is that retailers may need to shell out cuts by partnering with Klarna, but they will move more merchandise and revenue and bring more cheddar home. Let’s do it.

And Clarna was busy on that pitch. FinTech in Sweden counts more than 250,000 global retail partners, including H & M, Sephora, Macy’s, IKEA, Samsung, ASOS, Ralph Lauren, Abercrombie & Fitch and Nike, with 90 million global active users in 2 million transactions per day. I’m recording.

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So the BNPL industry seems to be almost sewn together, but where are the giants looking next? Obviously, to be a de facto growth partner for merchants. Do you want to stop by first? Comparison shopping service.

As of today, Klarna’s Comparison shopping service Located in 21 European markets, it offers partner retailers attractive offers, extended customer reach, all ready to buy.

To explain the context, let’s take a look at a short sidebar in the world of advertising / e-commerce, CPC, the world of cost-per-click. One of the tools in marketers’ bags is CPC advertising, and as the name implies, advertisers (marketers) are publishers, most often search engines (yes) every time a visitor clicks on an ad. , Google). The simplest formula is:

CPC (€) = Advertising Cost (€) / Clicked Ads (#)

Example: If you spend € 100 on a campaign and receive 32 clicks on your ad, your cost per click will be € 3.125.

Benefits of Klarna CSS

Google’s CSS (Comparison Shopping Service) was established to diversify search results for product list ads (remember that it’s still resolved). Fine of € 2.42 billion The search giant was slapped back in 2017).Ah Certified CSS Partner Acts as an intermediary and facilitates the publication of product list ads.

CSS providers can make money in basically two ways. It is a CPC model that charges a monthly hosting fee and a click fee. Klarna’s offer skips a 20% reduction in merchant CPC spending (see above) and therefore gives them the full power of bidding to win their first PLA position and / or placement.

Example: If a merchant is bidding $ 1 on the top slot, Google is only worth $ 0.80, but Klarna can get the full power of a $ 1 bid. The CSS flat rate is a small monthly hosting fee charged by Klarna, but merchants continue to manage and pay bids.

Now put in the mix that Klarna also lists the retailer’s product list inventory on the comparison shopping page. Visibility and customer reach are even better, ultimately leading to conversions.

“We are very pleased to launch the Klarna Comparative Shopping Service today. This new product will enable retailers to place Google product listing ads more efficiently. Specifically, this will be to retailers. It means expanding customer reach and providing a more effective and cheaper way to translate relevant traffic from consumers looking for the product they want to buy. David Sandstrom.. “As a retailer’s growth partner, we are excited to launch more products and services to support retailer strategies in the near future.”

Klarna’s comparative shopping services include Austria, Belgium, Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Spain, Sweden, Switzerland, and the United Kingdom. ..

Klarna Sequoia Capital Since 2010, recently Silver Lake, Dragoneer, Best-selling group, Permira, Ant group, HMI Capital, TCV, North Zone, Commonwealth Bank of Australia, Melian Chrysalis Investment Company LimitedFunds and accounts managed by Black lock Above all. Klarna launches comparative shopping service with the aim of becoming a de facto growth partner for merchants

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