Carrot, the leading shopping app for visual product bookmarking with a mission to bring joy to online shopping, issued a response to recent Consumer Financial Protection Bureau warnings about the significant risks to consumers posed by “Buy Now, Pay Later” (BNPL) services.
Nick Kuzma, the Head of Growth at Carrot spoke about the plummeting consumer shop browsing figures, imparting that “the current cycle of spendthrift behavior is coming to an end.”
Buy Now, Pay Later companies flourished amid the Coronavirus pandemic, with home furnishing and home gym products reaching all-time-high sales numbers. As Nick imparted, “over 40% of Americans were at some point persuaded by marketing that promised an antidote to the pitfalls of traditional credit cards. But now, 18% of Americans, nearly one in five, have missed a payment, incurring late fees and, for many, damaging their FICO credit scores,” Nick said.
The founder and CEO of Carrot Bobby Ghoshal saw the rise of BNPL companies as a threat to consumer wellness, stating that “the bulk of e-commerce has become fast food, designed to trigger cravings and feel good at the moment, but ultimately leaves you with regret.”
Bobby said that the inability of companies to connect to their customers and grow together is “a symptom of a greater malady.”
“Instead of addressing the root cause, brands have understandably focused on removing friction; optimizing for FOMO, cheap credit, one-click checkout, discounts, and “buy right-this-second” messages because they know that if a prospective customer leaves their website without converting, they’re unlikely to ever see them again. BNPL takes this to an extreme, giving folks the ability to supersize their purchases, ultimately leaving them in worse shape and even greater regret,” said Bobby Ghoshal.
To address this, Carrot plans to expand its consumer offerings, bringing greater intention and satisfaction to online shopping. “The purchase journey doesn’t have to end in regret—we can address the root cause of the current issues in e-commerce and, in doing so, support consumers and merchants, especially smaller independent brands who don’t possess Amazon-sized marketing budgets. Our number one focus will continue to be bringing increased gratification to our users—that joy you feel when you buy a product you love from a brand you believe in,” said Bobby Ghoshal.
Louis Kearns, Head of Product at Carrot imparted that “Carrot was designed to let consumers enjoy being power shoppers without the pressure of being “immediate” power shoppers.” The app was designed to help consumers keep track of their cart and return at any point they want to resume their purchase.
Many consumers have warmly received this alternative focus on intentionality, making Carrot a top mobile Safari extension in the Apple App Store.
Ramin Bozorgzadeh, co-founder and CTO at Carrot said that “the most remarkable thing has been seeing how users apply the tools we’ve built to their shopping journeys. The more consideration involved in the purchase – whether that’s because it’s an expensive purchase, one with many comparable options, or a very visible purchase like a gift – the more they turn to Carrot to visualize their options and make the decisions with confidence,” said Ramin.
More information about Carrot is available on the company’s official website.
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Company Name: Carrot
Contact Person: Nick Kuzma
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Country: United States
Website: https://addtocarrot.com/
