Order volume is going to increase! Amazon launches a new plan to stimulate consumption

According to foreign media reports, in order to cope with the impact of inflation, Amazon recently announced the launch of "Amazon Layaway" to stimulate consumption. This is a new interest-free installment payment method that allows consumers to complete the payment of goods in 5 months without any additional fees or credit checks.

Amazon Layaway is different from BNPL. The BNPL installment model is that the goods will be shipped after the consumer makes the first payment, but if the payment is not paid in full or delayed, BNPL will charge consumers late fees and other penalties. Consumers who use Amazon Layaway payment methods do not need to bear the risk of being fined. If the consumer chooses to cancel the payment or fails to complete the payment on time, Amazon will refund all the amount paid without charging service fees and cancellation fees.

In addition, Amazon Layaway allows consumers to pay 20% of the product price in the first payment, and the remaining fee only needs to be paid in monthly installments over the next four months. Unlike BNPL, consumers who choose Amazon Layaway payment method need to wait until the full amount is paid before receiving the product.

In fact, this is a policy of Amazon to stimulate consumption before the peak season. Judging from the current situation, the inflation situation in the United States, Europe and other places is still unclear. This policy can provide consumers with zero interest to repay future debts. If the economy improves, consumers can complete consumption in advance. If the economy is not good, they can also choose to cancel consumption. For them, this is a welcome thing.

It is reported that Amazon's program does not require a credit check, and has no interest or hidden fees, making it more beneficial for large purchases.

While the program does not require a credit check and will not be reported to credit bureaus, installment eligibility is determined based on the consumer's purchase history on Amazon, and consumers must link to a valid credit card to make scheduled payments.

A spokesperson for the regulatory consulting firm said that having to wait until all payments are completed before receiving the goods will not appeal to all consumers, but for Amazon and other retailers looking to increase sales, providing more payment options is always a good thing. Because some experts believe that the economic recession and inflation are driving consumer demand for more choices in flexible payment options.

In short, Amazon Layaway is of great benefit to sellers because there is a great hope that consumers' installment purchase rate can be increased.

Amazon

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