Impact on Consumer Financing Facilities on Online Shopping

Abstract

The surge in popularity of consumer finance options, particularly in the realm of online shopping, has reshaped the dynamics of modern commerce. This research explores the profound impacts of consumer financing on internet shopping behavior merchant revenues and market competitiveness. By enabling consumers to make larger purchases with ease and accessibility, these financing alternatives have not only expanded the online shopping landscape but also intensified competition among businesses vying to offer optimal financing solutions. However, concerns regarding debt accumulation and hidden costs persist, prompting a critical examination of various financing avenues such as credit cards, personal loans, and installment plans. Moreover, the integration of consumer finance into online retailing presents opportunities for merchants to tailor marketing strategies and foster customer loyalty, albeit with inherent risks of fraud and default. This study underscores the transformative role of consumer finance in online purchasing behavior and emphasizes the importance of strategic risk management for retailers to navigate this evolving landscape effectively.