Amazon recently introduced a new program called Flexible Customer Financing, which gives sellers the ability to offer payment options on products priced over $50. This new program makes high priced items more accessible to a broader range of customers by letting them pay in installments instead of making a one-time payment. It also helps sellers increase the likelihood of selling higher-ticket products to more customers than before. There is no impact to your seller account and no risk if a customer misses a payment since Amazon and its financial partner carry the risk for customers missing payments. Flexible Customer Financing is a great tool that improves affordability for customers while helping sellers increase sales with no added risk to their account.
What is Amazon Flexible Customer Financing (FCF)
Amazon flexible customer financing is a program which allows eligible products over $50 to be purchased by customers using 0% APR installment plans. These interest free plans are offered by Amazon and their financial partners which gives customers the ability to pay on eligible products for up to 24 months. Sellers are still paid upfront for the full product's cost and Amazon assumes all of the risk if the customer stops paying for the product.
How Flexible Customer Financing Works - When you enroll eligible products into Flexible customer financing, customers can start purchasing those products using the pay over time feature with 0% APR installment plans. Buyers may split payments 3 to 24 months or 4 bi-weekly installments depending on the purchase size. The seller will still get paid upfront by Amazon for the full product cost.
Eligibility and Enrollment - To be eligible for Flexible customer financing products must be in stock and priced at $50 or more. Sellers can check eligibility within Seller Central and choose to enroll items individually or in bulk. Enrollment is free and it can take 24 hours for the review process. Digital products, gift cards, and services are excluded from the program.
Seller Cost for Amazon Flexible Customer Financing (FCF)
Sellers are only charged a fee when a customer purchases one or more products that are enrolled under the flexible customer financing program and the order is marked as shipped. For FBA orders, the fee is the percentage of the total sale price which includes gift wrap and taxes. For seller fulfilled orders, shipping and gift wrap are excluded.
Example - If a customer purchases three of your enrolled products priced at $100, $120, and $150, a 1% fee would come out to $3.70. In a mixed cart where a customer buys one of your enrolled products at $100 and another seller’s item at $120, you would only be charged a fee for your product which would be $1 in this case.
Returns and Cancellations - If a customer cancels their flexible customer financing order before it ships, no fee will be applied to your account.
Considerations for Implementing Amazon Flexible Customer Financing (FCF)
When implementing new programs sellers need to be fully aware of some of the pros and cons that can come with the program and to closely monitor the account when using this new program. Flexible customer financing can be a great tool to increase your products conversion rate and drive more sales for these higher priced items. However, it’s important to understand that there is an extra fee so you should assess your product margins with the extra fee. Keep an eye on product pricing, if for some reason your price drops below $50 the enrollment will be deactivated. Regularly reviewing performance and catalog eligibility will help maximize the program’s effectiveness.
FAQ
What is Amazon Flexible Customer Financing?
Amazon flexible customer financing is a program that allows customers to purchase your products using a payment installment plan with 0% APR.
How do I know if my products are eligible for FCF?
Your products must be in stock and priced at $50 or more. You can check eligibility and manage enrollment directly in Seller Central under the “eligible products” tab.
Is there a cost to enroll in my products?
There is no fee to enroll. You’re only charged when a customer completes a purchase using the installment option and the order ships.
How are program fees calculated
For FBA orders, fees are a percentage of the total sales price which includes gift wrap and taxes. For seller-fulfilled orders, shipping and gift wrap are excluded.
Can I enroll products from the program after enrolling
Yes, you can unenroll a product at any time via the “Manage enrolled products” page in Seller Central. Changes typically take effect within 24 hours.
What payment plans are available to customers?
Depending on cart size, customers can choose payment plans over 3, 6, 12, 18, or 24 months—or select 4 bi-weekly payments over 8 weeks. The exact plan depends on the financial partner and approval process.
What payment plans are available to customers?
If a customer cancels an order before it ships, you won’t be charged a fee. If the product is returned, the fee you were charged for that transaction will be refunded to you.
Will my seller account be impacted if a customer misses payments?
No. Amazon assumes the risk on customer payments. You still receive your disbursement as usual, and your account remains unaffected by customer payment issues.
Will my seller account be impacted if a customer misses payments?
Once you enroll a product in FCF, it typically becomes eligible and visible with the installment option on the detail page within 24 hours.
How can I monitor performance of products enrolled in the program?
You can download performance reports from the “Manage enrolled products” tab in Seller Central to view metrics like enrollments, orders, and financial impact.
Conclusion
Flexible Customer Financing is a great program that provides Amazon sellers with a competitive edge when it comes to selling higher-priced products. By offering 0% APR installment payment options, you can increase your product's conversion rate and drive more sales while receiving the full payment upfront from Amazon with no risk. For shoppers, this provides a better customer experience by making higher-priced products more affordable with this payment option. Goat Consulting helps brands and manufacturers take advantage of new Amazon programs like Flexible Customer Financing by reviewing your catalog and enrolling and managing eligible products. If you have any questions or would like Goat Consulting to help you enroll in this program, please reach out through our Contact Us button below.
About the author
This post was written by Albert Podshivaylov, an Account Manager at Goat Consulting. Albert helps his clients sell on Amazon by increasing sales, mitigating risk, reducing costs, and solving problems. Albert has experience and expertise in advertising and merchandizing on Amazon that align with the overall Amazon selling strategy and goals for his Goat Consulting clients. If you want help with your account on Amazon or assistance with other aspects of selling on Amazon, Albert is happy to lead your account