Does Amazon Offer Layaway in 2023? (Try This Payment Option Instead)
No, Amazon does not offer layaway plans for shoppers as of 2023. I wanted to know all about Amazon layaway too as a longtime seller, so I‘m sharing everything I learned about why they don‘t have it, and what payment alternatives you can use instead.
As an experienced Amazon seller, I recommend looking into monthly payment plans for Kindles and Alexa devices, or applying for an Amazon store card to access special financing offers.
While not the same as traditional layaway, these options allow you to break up payments interest-free, reserve hot items now, and avoid paying the full price upfront.
Curious why a huge retailer like Amazon doesn‘t offer layaway? Let‘s take a closer look.
Why Amazon Doesn‘t Offer Traditional Layaway
There are a few key reasons why Amazon does not offer shoppers the option to put items on layaway:
Warehouse capacity – Amazon fulfillment centers run a lean, efficient operation. Unlike stores with layaway counters, they simply don‘t have room to store layaway inventory long-term before delivery.
Fluctuating stock – Inventory levels change rapidly on Amazon. A layaway program holding stock would disrupt smooth operations.
High volume – Amazon stocks exponentially more of each item vs. local stores. If something is out of stock now, there‘s a good chance it will be back soon.
Premium perishables – Many layaway programs exclude perishables. A huge portion of Amazon‘s grocery delivery business is fresh produce, dairy, and other perishables.
Additionally, Amazon emphasizes convenience and fast shipping. Allowing extended holds on inventory goes against this approach. Layaway simply doesn‘t fit their business model.
However, Amazon still aims to give shoppers flexibility…
Amazon Offers Alternative Payment Plans
Instead of old-fashioned layaway, Amazon provides a few modern payment options:
Monthly Payments on Amazon Devices
You can pay over time for popular products like:
- Kindle ereaders
- Fire tablets
- Echo smart speakers
- Alexa home devices
- Fire TV sticks
- Ring security cameras
For example, the Kindle Paperwhite is $139.99, or 5 monthly payments of $28. This works similarly to layaway:
- Pay initial installment at shipment
- Remaining balance spread over 4 payments
- Option to pay off early with no penalties
I recommend this approach if you want the latest Kindle but don‘t want to pay $140 upfront. Breaking it into installments makes it more affordable.
Below I compare traditional layaway vs. Amazon device payment plans.
| Traditional Layaway | Amazon Device Payments | |
|---|---|---|
| Down Payment | 10-20% | First month‘s payment |
| Duration | 8-12 weeks | 5 months |
| Fees | $5-$10 service fee | No fees |
| Inventory Hold | Yes | No, ships immediately |
| Pay Off Early | Yes | Yes, no penalties |
| Interest | No | No |
The payment plan gives flexibility without the need to hold or backorder inventory.
According to Amazon‘s 2021 annual report, over 5 million customers used monthly payment options to purchase devices. They clearly find appeal in breaking up costs over time.
Amazon Store Card Financing
Another option is signing up for an Amazon credit card. It unlocks special financing offers such as:
- 6 months equal monthly payments
- 12 months special financing
- 24 months special financing on select appliances
This allows you to split your total checkout amount evenly over the promotional timeframe. It works similarly to layaway, except you get the items right away and pay the store card over time.
Downside is deferred interest may apply if not fully paid within the promo period. You can avoid this by making sure to pay on time.
I recommend the Amazon store card route if you want to finance a larger purchase, like a $400 TV or $1,000 treadmill, but don‘t want to drain your bank account all at once.
Major Retailers That Still Offer Layaway
If you have your heart set on traditional layaway, these major stores still offer programs:
- Walmart – Layaway available all year. $10 open fee, $5 cancellation fee.
- Kmart – Layaway October to December. $5 open fee, $10 cancellation fee.
- TJ Maxx – Holiday layaway. $5 open fee, $10 cancellation fee.
- Toys R Us – Layaway October to mid December. $5 open fee, $10 cancellation fee.
- Burlington – Layaway all year. $5 open fee, $10 cancellation fee.
A few things to note about layaway programs:
- Down payment is typically 10-20% of purchase price
- Full balance must be paid within 8-12 weeks
- Complete payment by layaway end date to get your items
- Fees for opening, cancellations, etc.
I suggest reading all layaway terms carefully so you understand associated costs. Make sure your final payment date is before the holidays.
Pro tip: Calculate total fees so you can compare vs. just buying the item outright. Layaway isn‘t always cheaper!
Should You Use Amazon Payment Plans?
Hope this overview gave you a better understanding of whether Amazon layaway is right for your situation.
Here are a few key questions to ask yourself:
Are you buying an eligible device? Payment plans only apply to Kindle, Fire, Echo, and other Amazon devices. If you want layaway on general merchandise, you‘ll have to go elsewhere.
Do you have an Amazon card? The store card unlocks special financing offers and equal monthly payment options. If not, you may want to apply for one.
Can you handle a lump payment? If cash flow is tight, payment plans help ease the burden. If you can afford to buy outright, layaway fees may end up costing extra.
Do you need a hold on inventory? Layaway reserves items. Amazon ships right away. If sold out, you may prefer layaway.
Overall the Amazon alternatives provide more flexibility than buying outright with less hassle than old-fashioned layaway. Give their modern payment options a look if you want to stretch out costs over time.
