If you’ve already heard about layaway, then you know that it is a popular payment method that allows shoppers to make a down payment, and the vendor holds an item until you complete all payments.
As you browse the various products on Amazon, you may ask yourself whether Amazon has layaway. Keep reading to get answers to this question and discover more about the several available options.
Does Amazon Have Layaway?
Unfortunately, as of 2022, Amazon doesn’t have a dedicated layaway program. Instead, it offers monthly payment plans on certain items such as Fire tablets, Alexa-enabled smart home devices, and Kindle e-readers.
However, if you are an Amazon cardholder, you may receive special financing or monthly payment offers on select orders.
Why Doesn’t Amazon Have Layaway?
One of the major reasons why Amazon does not have layaway is because it lacks the capacity in its warehouses. While its fulfillment centres are huge, they are designed and managed to make the most use of the space.
Unlike physical stores that have a designated layaway counter, the stock levels at Amazon are constantly fluctuating, and a layaway program would disrupt this.
The perks of shopping on Amazon is that they have a much higher stock volume. So while layaway may make perfect sense at your neighboring department store that stocks limited products, with this online retail store, items are replenished regularly. So say you see an item on Amazon during the holiday season, but you do not have the money to get it yet, it is highly likely that you will still find it there after a few weeks.
Of course, Amazon offers no guarantee of stock availability or pricing. Still, it goes without saying that it provides a wide range of products to choose from compared to other retailers whose in-store selection is limited. Target, Best Buy, and Costco are other major retailers with no exclusive layaway programs.
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Did Amazon Get Rid of Payment Plans?
If you are looking for conventional layaway, you might want to check out other stores such as Kmart or TJ Maxx, known for their extensive layaway options.
However, it is important to remember that while Amazon doesn’t have layaway, it has thousands of products in each category. This way, you are likely to find the item of your choice if you could wait a little bit.
To answer the question, no, Amazon didn’t scrape off its monthly payment plans. There are select items for which you could get a monthly payment plan on Amazon.
They include Amazon devices such as Kindle e-readers, Fire tablets, Amazon Fire TV, and Alexa-enabled devices like Echo Dot and Amazon Echo. You will usually find these monthly payments options displayed on the products details page.
How To Do Layaway On Amazon
If you go for the monthly payments options on qualifying items, you will find that it works in a similar way as layaway, and you will have to make five payments. Once you select a payment plan, you will need to make the initial payment on the shipment date before shipment.
Having done this, you will be left with four equal monthly payments usually spread out at the 30, 60, 90, and 120-day mark from the date of shipment. By agreeing to monthly payment plans, you give Amazon permission to charge your selected payment method every month.
It’d help to remember that you don’t have to stick to the set payment dates as you could prepay the next payment or pay the entire balance whenever you please. In addition, Amazon doesn’t issue finance or interest charges with monthly payments on its own devices like Amazon Echo smart speakers or e-readers.
Signing Up For An Amazon Store Card
Another genius way to get around the absence of layaway options at this internet marketplace is to apply for a store card. When you use an Amazon credit card, you have access to promotional financing on qualifying purchases.
The application process is done online and takes a few minutes. Once you get approval, you can link your store card to your account and enjoy additional benefits.
Suppose your item eligibility or cart total meets the requirements for special promotional benefits. In that case, Amazon will display the payment options, and you can choose how many monthly payments you’d wish to make. Upon confirmation of your order, you will see a reminder of the payment schedule and the amount you need to pay each month.
Are There Any Hidden Fees With the Layaway Payment Option?
Although layaway seems like a quite straightforward process, it involves a series of complicated fees. Different stores have different policies, but your local store may charge these fees:
- Service fee: This fee caters for the store’s costs associated with payment processing and ensuring items stay off the shelves. Normally, it ranges from$5–$10.
- Cancellation fee: some stores will charge you a fee in case you choose to forego your plan or cannot make due payments.
- Restocking fee: Retail stores will charge this fee if you are late in making your payments or do not complete your payments by the set date.
What Are The Pros Of Layaway?
When compared to some of the other financing methods, layaway ranks the best because of these reasons:
- Interest-free purchases: while you may have to incur some charges with this financing method, your purchases won’t attract interest.
- Additional purchasing options: layaway is an excellent substitute to using credit cards to make payments. If you have no credit cards and aren’t looking to get a store card, it provides an alternative method to make your payments over time.
- Availability of products on high demand: Layaway will prove helpful particularly during holiday seasons when popular toys, decorations and electronics quickly sell out. Placing such items on layaway before the holiday season guarantees you will get it during the holidays.
- Online availability: most retail stores offer layaway if you purchase for through their online stores. Online layaway goes a long way to shield you from the frustrations of handling holiday crowds, having to wait in long queues and having to move from one store to another looking for an item.
- Easily accepted: unlike with credit cards, layaway programs don’t conduct credit or income checks before approving you. To qualify for these programs, all you require is a down payment and identification proof to show that you are of legal age.
Want to learn more about Amazon? Check out these articles to learn if you can use Google Pay on Amazon, what to do if your Amazon order says delivered but you haven’t received it, and can you return opened items to Amazon?
Unlike Kmart, Walmart, and TJ Maxx, Amazon lacks a traditional layaway program. However, this shouldn’t worry you, as you can get monthly payment plans on particular smart home devices and Kindle e-readers.
Also, signing up for an Amazon store card gives you access to special financing and equal monthly payment options for some of your orders.