Former Shopify Employee is Disrupting Preorders: Why Full Price Up Front is Killing Your Sales w/ Diana Birsan Co-Founder @ Downpay
Shopify1Percent
· with Diana Birsan
· June 25, 2025
· 59 min
Summary
For Shopify merchants selling high-ticket, custom, or pre-order products, requiring full payment upfront is a major conversion killer. This episode reveals how implementing partial payments and deposits, similar to Downpay's solution, can significantly boost sales (up to 47% conversion lift) by building trust and leveraging buyer psychology, offering a powerful alternative to traditional BNPL models.
Key takeaways
Implement partial payments or deposit options for high-ticket, custom, or pre-order items to overcome conversion barriers. A Shopify merchant saw a 47% conversion increase by offering deposits.
Explore solutions that integrate natively with Shopify's checkout to maintain clean analytics and avoid duplicate orders, unlike some extended BNPL functionalities.
Utilize features like storing cards on file and custom charge triggers (e.g., on delivery, fulfillment) to maintain control over the payment schedule for partial payments.
Understand that Buy Now Pay Later (BNPL) can be detrimental for merchants with custom or delayed delivery products due to high fees (6-10% per sale) and unsuitable payment structures.
Leverage deposits to tap into buyer psychology, specifically the 'sunk cost fallacy,' which can reduce cancellations on pre-orders and custom items.
You’re not losing sales on Shopify because your product is too expensive. You’re losing them because you’re asking for full payment upfront. One Shopify merchant increased conversions by 47% simply by letting customers pay a deposit instead of the full amount. (*Not Buy Now Pay Pater)
Flexible payments aren’t just nice to have, they’re a growth lever.
Frequently asked about this episode
What does this episode say about conversion rate optimization?
Implement partial payments or deposit options for high-ticket, custom, or pre-order items to overcome conversion barriers. A Shopify merchant saw a 47% conversion increase by offering deposits.
What does this episode say about customer psychology?
Explore solutions that integrate natively with Shopify's checkout to maintain clean analytics and avoid duplicate orders, unlike some extended BNPL functionalities.
What does this episode say about e-commerce growth strategies?
Utilize features like storing cards on file and custom charge triggers (e.g., on delivery, fulfillment) to maintain control over the payment schedule for partial payments.
What does this episode say about payment optimization?
Understand that Buy Now Pay Later (BNPL) can be detrimental for merchants with custom or delayed delivery products due to high fees (6-10% per sale) and unsuitable payment structures.
What does this episode say about conversion rate optimization?
Leverage deposits to tap into buyer psychology, specifically the 'sunk cost fallacy,' which can reduce cancellations on pre-orders and custom items.
