Affirm

Tradesy and Affirm Installment Financing Drive Great User Experience, Increased Revenues

Affirm Installment Financing Helps Tradesy Lead the “Cyclical Commerce” Revolution

Case study by Affirm, Inc. and Tradesy

With over three million members, Tradesy is now the undisputed leader in designer fashion resale for women. Apparel bought and sold on the two-and-a-half-year-old website or mobile app can range from a $50 pair of Toms shoes to pre-owned ultra-luxury goods, like $2,700 Louis Vuitton purses. But those luxury items – Tradesy’s bread and butter – were at times outside of the financial comfort zone of many members.

That changed dramatically last year when Tradesy started working with Affirm to offer installment financing at the point-of-sale.

“We’re on a mission to bring trust and fairness to fashion, making great style affordable and accessible to everyone,” said Sash Catanzarite, Tradesy Co-founder and Chief Product Officer. “At first we saw Buy with Affirm as just a nice alternative to credit cards or PayPal. But it quickly became an opportunity to accelerate customer gratification and our cyclical commerce model, where members sell underutilized items to fund the purchase of new ones.”

Catanzarite explains that after testing PayPal Credit, which had little to no impact on Tradesy’s business, Tradesy selected Buy with Affirm, allowing shoppers to pay for purchases in multiple monthly installments with simple, straightforward fees at a fraction of credit card interest rates. Tradesy has subsequently seen a 14 percent increase in checkout conversion and a 34 percent increase in revenue per user with Affirm. Further, the average order value for Tradesy purchases using Affirm is 75 percent higher than purchases using other payment methods.

“Our members love the option to pay for their purchase over time, but get it today,” said Catanzarite. “If they’re on the fence about making another purchase, the option to finance is often the difference between closing a sale and not.”

Tradesy sales are now growing 35 percent month-over-month, with more than 50 percent of those sales coming from repeat buyers. And Buy with Affirm is making a measurable contribution to that success.

Repeat purchasing on Tradesy is 88 percent higher among members who have used Buy with Affirm. Additionally, Affirm buyers on Tradesy re-list items they've purchased using Affirm 18 percent more often than those who purchased without Affirm, suggesting that Affirm financing supports the "cyclical commerce” trend that Tradesy is leading.

As a result, Buy with Affirm has been integrated into all of Tradesy’s product pages, so buyers can choose to purchase items in full or break purchases into monthly payments.

“What clicked for me was Buy with Affirm can be an opportunity for customers to essentially lease luxury goods,” said Catanzarite, who believes every fashion product can have five owners in its lifetime. “On average, we help consumers get up to 50 percent more value for items already in their closet. Now, using Buy with Affirm, they get access to things they want right away, enjoy them, and if they choose, sell them before they’ve made all of their payments.”

Tradesy seller Chic-Joy added: "Affirm financing has been an integral component of our extremely positive selling experience on Tradesy. Clients continually rave to us about their quick and easy financing experience with Affirm. Several customers have even taken advantage of Affirm credit to purchase items such as Hermes Birkin bags. The benefits are clear: increased sales, happy customers, and high-value transactions that may not have occurred without Affirm's quick and discreet financing.”

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Affirm is a next-generation consumer finance company providing shoppers with instant point-of-sale financing online. Our simple, transparent financing empowers shoppers to buy now and pay over time in 3, 6, or 12 monthly installments at reasonable interest rates. Millennials and other consumers are loving this new form of financing.

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