Innovative celebrity Pablo Foncilas has issued a warning to those who have bought gifts on Black Friday and are “full of Christmas shopping”. Problems left by the “consumer party” to individuals and businesses – this is what he calls “cheesy” – especially if the purchase is made online.
The business school professor explains that PayPal recorded a 400% annual increase in “buy now, pay later” during last Black Friday, allowing multiple installments of any service or product to be purchased instantly and paperless. The service has exploded in popularity lately, spurred by the boom in e-commerce during the pandemic.
Other consequences
The bill is not only economic, but also environmental
This trend worries regulators and consumer associations who believe that postponing payments for purchases encourages compulsive buying and exposes consumers to excessive indebtedness. as ReutersOne in three US buyers were unable to return one or more of their outstanding payments. “However, PayPal confirms that it has one of the lowest rates of late payments,” says Foncillas,
But in addition to leaving an economic hole in the pockets of consumers who decide to postpone payments, e-commerce causes a greater volume of revenue. Thus, while between 4% and 6% of purchases in the physical store are returned, in the case of online communication, the figure is three times higher. And in periods like Black Friday and Christmas, the percentage increases by up to 50%.
This phenomenon not only has repercussions in declining profitability for companies, but also has an even more “disturbing” consequence: pollutes the planet because online returns, for example, require more packaging. “I don’t know if you also know that many of the products we return are never sold again. Yes, they were simply thrown out,” the management expert laments.
The hole left by individuals and companies on Black Friday | Pablo Foncilas
