Amazon Launches Interest-Free Instalments – What This Means for Brands
Amazon UK has introduced interest-free instalment payments for customers, making it easier for them to split the cost of purchases over several months. The feature, part of Amazon’s Flexible Customer Financing (FCF) program, is now more widely available.
What's Changed:
- Customers can now pay for eligible orders (typically between £80 and £3,000) in monthly, interest-free instalments.
- Brands still get paid in full upfront, Amazon takes on the financing.
- There’s no cost to sellers unless a customer actually chooses the instalment option.
- A new dashboard in Seller Central shows performance and engagement with the instalment feature.
What This Means for Brands Selling on Amazon:
- It gives brands an opportunity to increase conversion on higher-ticket products, especially those over £100.
- With no delay in receiving payment, it supports healthy cash flow while offering more flexibility to shoppers.
- Amazon suggests brands could see up to a 30% uplift in sales for products enrolled in the program.
- Brands now have a new lever to drive demand, especially in competitive categories or for new product launches.
- There is a small fee per transaction when instalments are used, so brands will need to assess the margin impact.
Overall, this is a sales-boosting tool that lets brands offer customers more buying power without taking on any payment risk. It’s especially useful for brands selling premium, high-AOV products, or looking to improve their conversion rates during key sales periods.
