Choosing Payment Methods – Factors Medical Devices Online Sellers Should Consider

---

What payment methods should you consider offering your buyers? Every owner of an e-commerce website has to face this question at least once. Our experts say occasional re-examination of these important choices is desirable because it can dramatically affect your business results.

Many businesses in the field of aesthetic distribution are losing existing and potential buyers because their payment methods are unsuitable for their target audience. On the other hand, many distributors are not even aware that this is the reason healthcare professionals abandon their carts.

To help you understand what the key factors are, we first need to explain the difference between payment methods and payment providers (in our experience, two often confused terms).

A payment method is the way a buyer purchases, while a payment provider is a third party that makes that possible. For example, Areto (payment provider) supports payment with a credit card (payment method).

Most common methods in European aesthetics B2B

Before we introduce our list of payment methods we found most common, please note that we are not trying to determine which of these options you should use. Each business has their favourite payment method and different reasons for using one rather than the other. It is important to remember when making your selection that a successful wholesale website should offer diversified payment methods.

Here is the list of the most common payment methods:

• Debit card
• Credit card
• Bank transfer
• Digital wallet / Mobile wallets
• Cash on delivery
• Traditional trade credit
• Paper cheque

One buyer report (2021) found that as much as 90% of B2B buyers will turn to a competitor if a supplier’s digital channel does not possess their preferred payment method. Your brand and shipment guarantees are not the only things buyers want – sometimes it is as simple as offering a personalised and localised payment method.

Factors to consider when choosing payment methods

Why choose? Why not provide all the possible payment methods on your site? We often get these questions from online sellers during our consulting sessions. The answer is a balance between buyer needs and the technical capabilities of a particular business.

Knowing your buyers is everything, and this can be applied to each of these factors. Keep that in mind while reading the following list of factors.

1. Compliant with B2B e-commerce selling injectables

The first thing we need to discuss is which payment methods your target buyers prefer. If you have that information, you can go to the next steps.

Good options for B2C shoppers are not always transferable to B2B buyers

Although some of your buyers may be individual healthcare professionals, you are still in the field of B2B sales and distribution, which is different from B2C in many ways, including payment methods.

For each B2B transaction, there should be an invoice as proof of payment, which automatically narrows down your options. Bank transfers are, for example, recommended whenever it is possible.

Not all payment providers or banks want to work with injectables distributors.

This is an issue most of our partners face. The aesthetic injectable market is considered among those labelled as risky for most payment providers.

A lot of establishments, especially banks, refuse integration with e-commerce, which sells medical devices such as facial fillers. Therefore, when you manage to find a suitable payment provider, your available payment methods will depend on the provider.

2. Localising your Buyer’s payment experience

Choosing a suitable payment method based on the buyer’s location is the second crucial factor. In a demographic sense, your target audiences may sometimes appear to be very similar. However, their location is an important factor to understand because it makes their online buying behaviour different too.

Countries where you do business (or plan to) have laws, restrictions, or commission fees that can determine buyers’ preferred payment methods. For example, in the UK, most B2B transactions are made via Faster Payments, while cards are not relevant for most businesses.

On the other hand, if you plan to approach a new demographic in order to increase revenues, perhaps you should think twice. This can mean starting from scratch in terms of understanding the payment habits of the local healthcare professionals. 

It may be easier, faster, and more cost-effective to examine your existing buyer’s payment journey and improve it to make them satisfied. In our experience, positive word-of-mouth about payment options alone can help you expand your current market share.

3. Cash-flow speed

If you are a business owner in the healthcare industry (or any other), there is no need to explain the importance of cash-flow speed. Some payment methods are faster, and others may take up to a week to process into your account. For example, paper checks can take up to 7 days to complete the entire process. That includes mailing to the seller (and there is always the risk of privacy infringement or theft while in transit).

Giving up on slow payment methods could be an option, but be careful before making this decision because it can contrast with what buyers prefer. Studies show that businesses still use certain slow payment methods regularly, so there is no single answer.

This leads us to our final important factor for choosing payment methods.

4. Unique business needs

As we considered all the factors discussed above, we touched on the importance of adjusting your payment methods, so they meet your target audience’s needs.

Online medical device sellers often make the same mistake: copy/paste what competitors do. While it is helpful to inspect their tactics, the key is to rethink and test each option with your target healthcare providers.

Final thoughts

As you can see from this article, the answer is not simple, and it is hidden between balance, experience, and the ongoing process of understanding the market. 

In case you want to get a consultation from our B2B payment expert, feel free to get in touch.

References:

https://www.bigcommerce.co.uk/blog/b2b-ecommerce-payments/#the-benefits-of-b2b-going-digital

https://www.aretopayment.com/online-payment-gateway-aretopay/

https://www.fasterpayments.org.uk/how-faster-payments-works

https://www.paystand.com/blog/b2b-payment-methods

https://www.avionos.com/resources/2021-b2b-buyer-report/

---