For brands selling products on Amazon with a higher RRP, offering Flexible Customer Financing (FCF) could entice more sales from customers looking to spread the cost. But is it for you? Here are the questions you need to ask…
How does Flexible Customer Financing work?
- Amazon’s FCF offering gives shoppers three financing options ranging from Short Term (3 months) to Long Term (48 months)
- It’s available on products costing from £80-£3,000
- Shoppers pay no interest or hidden charges (0% only for purchases over £100)
- No credit check or application is required
- Fees to the Seller vary, depending on the length of finance chosen
Should you offer Flexible Customer Financing?
It might seem like just another way for Amazon to charge you a fee, but FCF could be a useful tool to make your products more accessible and drive sales – if your offering fits certain criteria.
To determine if it does, ask…
- Are you selling on other channels where financing is available? If yes, what are you offering your Amazon customers as a differentiator?
- Should you be offering your Amazon customers an easier way to pay? Finance offerings from the likes of Klarna, Clearpay and Paypal are on the rise across the e-comm space and we are in a cost of living crisis – now’s the time to consider your customer’s situation and journey from click to conversion.
- Are your competitors offering FCF? If yes, are they taking some of your market share?
- Do you have the margin to offer FCF? Short Term options come with relatively low fees, but customers opting for Longer Term financing? That’s higher fees plus a good chunk of revenue spread over up to 4 years.
Want our team’s expert take on whether Flexible Customer Financing is a good fit for your brand? Get in touch today.