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Does Amazon Have Layaway Program? (A Full Guide)

More people are increasingly opting for installment-plan-driven services, particularly via firms such as Affirm, Klarna, or Afterpay. Layaway is a payment plan that allows consumers to spread the expense of a large purchase out over many months rather than having to come up with the whole amount at once. Does Amazon have a Layaway program? Read on to find out what I discovered.

Does Amazon Have Layaway Program in 2023?

As of 2023, Amazon does not offer a specific layaway program during the festive season or at any other time. Instead, Amazon provides monthly payment plans for a few products, including Fire tablets, Kindle e-readers, and Alexa-enabled smart home gadgets.

However, Amazon cardholders can get special financing or an offer to pay the same amount each month on some orders. The layaway program offered by Amazon is not new, but you may not have been aware of it. When this service first launched in August 2021, it was only available in a few regions. Since then, other delivery places have been established.

Amazon Layaway is unavailable for orders shipping to Maryland, Ohio, Connecticut, Washington, D.C., or Pennsylvania. To learn more about Amazon Layaway, including how to use Amazon Layaway, keep reading.

How Do I Use Amazon Layaway Program?

Amazon Layaway Program

You must first identify an eligible item before you can start using the Amazon Layaway plan. Click Reserve with Layaway near the product's name to reserve the items. The number of available items seems to be restricted at the time of publishing.

However, the company offers a vast range of product categories that can be purchased on layaway. After adding an eligible item to your Amazon shopping cart, you'll need to pay at least 20% of the total price (including any discounts) at checkout to secure your purchase and guarantee its availability.

The fee will be divided into five equal installments over the course of eight weeks. The final payment will include standard shipping; however, Prime Members may use Amazon Layaway to enjoy free shipping on eligible purchases. Your order will ship once you've made the final payment, so if you complete it before the eight weeks are out, you'll receive it sooner.

If you decide to cancel your layaway or do not pay it off in full, you will get a full refund of any and all payments made. Your payments for the layaway are determined by dividing the total price of the item, minus any applicable taxes and fees, into five equal installments.

How Does Amazon Monthly Layaway Work?

Amazon Monthly Layaway Work

Monthly payments are a little-known way for eligible Amazon customers to pay for certain items over time. You must make five payments if you choose the option for monthly payments on eligible products, which functions similarly to layaway. After selecting a payment plan, the first payment is due on the day of shipping prior to delivery.

Then, you will get four equal monthly installments at 30, 60, 90, and 120 days from the date of shipment. By consenting to monthly payment plans, you authorize Amazon to charge your chosen payment method on a monthly basis.

Furthermore, clients may prepay the next payment or pay off the whole debt at any moment. Amazon does not usually impose interest or financing fees in conjunction with monthly payments for its own devices, such as e-readers and Amazon Echo smart speakers. You can only enroll in one monthly payment plan per product category, and you may only utilize monthly payments for one qualified product from each category at a time at checkout.

Why Doesn't Amazon Provide Layaway as Other Stores Do?

Layaway as Other Stores

Amazon does not provide layaway like other stores mostly because its warehouses do not have sufficient capacity. Even though Amazon's fulfillment facilities are enormous, they are built to maximize space. Amazon's stock levels continuously fluctuate, and a layaway program would disrupt this.

In contrast to other stores, Amazon does not have a dedicated layaway counter. The fact that stock volume is much larger when purchasing from the eCommerce giant is excellent news. Therefore, although layaway may make perfect sense in your nearby department store that supplies restricted goods, commodities are constantly restocked with this online retail company.

For instance, if you come across an item on Amazon during the Festive season but do not have the funds to purchase it, it is quite possible that the item will still be available a few weeks later. Although there are often more options available on Amazon than at other retailers with a smaller variety in-store, Amazon can not guarantee stock availability or cost.

How Do You Register For An Amazon Store Card?

Registering for an Amazon store card

Registering for an Amazon store card is another smart approach to avoid the lack of layaway options on this eCommerce platform. You can register for the Amazon store card and connect it to your account when it has been accepted to get extra benefits.

If your item is eligible for special promotional benefits, you can see the payment options and choose how many monthly payments you would like to make. You will be reminded of the payment plan and the monthly payment amount when your purchase is confirmed.

What Happens If I Fail To Pay My Amazon Layaway Balance?

Pay My Amazon Layaway Balance

 When you fail to make your planned layaway payment, Amazon will email you that your payment is overdue. When your Amazon Layaway plan becomes late, you will be unable to open any additional programs.

You may bring your Layaway plan up to date and continue using it to make purchases if you pay off any remaining amount before your next payment is due. But if the overdue payment isn't made before the next scheduled payment, Amazon automatically cancels the layaway plan and refunds money that has already been paid.

How Do I Cancel Amazon Layaway Program?

Cancel Amazon Layaway Program

You can choose not to pay for it. Amazon will provide you with the final date and grant a refund of all amounts spent if you decide to terminate the plan or do not finish the payments after a particular time. If a payment is declined, you will not be able to set up further payment plans while an existing program still has a balance that has to be paid.

Bottom Line

Amazon does not offer a specific layaway program; instead, it provides monthly payment plans for a few products. The eCommerce giant does not give layaway like other retailers because its warehouses do not have enough space.

If you select the option for monthly payments on qualifying items, which works similarly to layaway, you must make five payments. To cancel a layaway program on Amazon, you may stop making payments on the product.

Doug Wein

Doug Wein is an independent consultant and coach, working with sustainability-minded businesses and professionals to help them clarify and achieve their most critical goals. He has provided strategic sustainability consulting to Fortune 500 companies across a wide array of industries, including food & agriculture, retail, manufacturing, real estate, green building, and waste & recycling. His coaching work helps clients develop leadership skills, spread bold ideas, transform organizations, and ultimately create positive change. Doug has led strategy development trainings in small teams and in groups of over 650 professionals at such premier sustainability venues as the Greenbuild Conference. Doug has led people and organizations for over fifteen years. He has an MBA from the Ross School of Business and an MS from the School of Natural Resources and Environment, having graduated from the Erb Institute for Global Sustainable Enterprise at the University of Michigan. His undergraduate degree in Psychology is from Pitzer College. When he’s not coaching, Doug is often attempting to invent new culinary sauces to delight his wife, building treehouses, or exploring the backyard with his two-year old.View Author posts