Any seasoned ecommerce seller will know the importance of payment options. In many cases, the payment options offered by a seller can be the difference between securing a sale or losing a customer. Amazon are obviously aware of this and have therefore teamed up with Barclays to offer their consumers a Buy-Now-Pay-Later payment option called ‘Instalments’. So let’s take a look at the new Buy-Now-Pay-Later option offered by Amazon and discuss how it could benefit you and your business.
Buy-Now-Pay-Later The Latest Craze In Ecommerce
The popularity of Buy-Now-Pay-Later (BNPL) payment options has sky-rocketed in recent times. The driving factor of this is the fact that these payment options allow consumers to get products quickly rather than having to save up beforehand. This also allows consumers to budget during busy shopping periods, such as the festive season. Many British consumers claimed that they would not have been able to afford all of their festive shopping without BNPL payment options.
Klarna has been the main service provider. The Swedish start-up is now one of the most popular payment options around the world, and its popularity is only growing. This form of payment option will continue to increase in popularity and has already proven to be extremely successful in Europe. For more information on these payment options you can check out our article on Buy-Now-Pay-Later payment options.
Amazon & Barclays New Buy-Now-Pay-Later Payment Option
As stated earlier, the new BNPL payment option from Amazon and Barclays is called ‘instalments’ and is now available to consumers in the UK. This option was previously available in Germany, and the popularity of the feature has convince Amazon to offer the option more widely. Whilst users will be able to use the option to pay for many third-party products on the site, they will not be able to use it for groceries or digital products.
Interestingly, the payment option will charge an annual interest of 10%. This interest will only apply over the payment period, but it is still a slight disappointment, since other providers of the service, such as Klarna, do not charge any interest. Amazon sellers will be able to use the service so long as they remain within their credit limit and monthly payment limit. Amazon will determine this limit by asking users for their income and employment status.
Be Careful Of Debt When Using Buy-Now-Pay-Later Services
As much as the requirement to submit personal income information may seem cumbersome, it is likely more sensible. It has been well documented at this point that there has been growing debt in consumers as a result of the BNPL payment options. It is thought that UK ecommerce consumers have already accumulated over 4 billion euros worth of debt from using the service.
Conclusion – We Specialise In Supporting Amazon Sellers
As usual, we would like to take this opportunity to remind you that our long history of working with Amazon and eBay sellers means we can offer you expert advice. As a trusted member of the Amazon Service Network, we can act as a third-party service provider for the Amazon VAT service.
As well as helping with your Fulfilment, we would be more than happy to help you register for the OSS and help you with all your VAT compliance needs in case your account faces any issues. So please do not hesitate to give us a call on 0161 637 1080 or send an e-mail to enquiries@jpaccountant.com for a quote today.
