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Three Months in, Amazon’s Kindle Installment Plan is Here to Stay

Installements-400x32[1]Did you catch the story today on Amazon new* installment plan for Kindles and Kindle Fires? Amazon's three month old program is getting a lot of attention today. TechCrunch and many other blogs have noticed that Amazon is repeating the short installment plan pilot  which Amazon ran last year, only now Amazon has expanded the program to include all of their ereader and tablet models (but not the Fire TV - yet).

From what I can see, the terms of the deal haven't been changed. The cost is still spread over 5 payments, with the first payment due when you check out. A credit check is not required, but Amazon does want to see a credit card.

I can't say that I am surprised to see the program is still around, but I am a little surprised that it's been running for 3 months before the blogosphere noticed. That's odd.


It makes a lot of sense for Amazon to offer this program. Once they have maxed out their retail channel by selling to everyone who can pay full price, and lowered the price as much as they can via ad subsidies, the next logical step was to offer an installment plan and lower the purchase barrier another notch. And since Amazon handles their own payment processing, the actual cost (compared to having the stock sitting in a warehouse unsold) is minimal.

What's more, if the reports that Kindle owners spend $443 more per year with Amazon than non-owners then the retailer would be a fool not to offer this plan.

But I wouldn't put too much weight into that report; this installment plan is mainly for people who can't afford the full retail price of a Kindle or Kindle Fire in a single charge. If their funds are that tight then I'm not sure how much they can afford to spend to spend at Amazon.

On a related, Amazon has been trying out a program which lets customers try a Fire TV for 30 days before paying. That program is much more selective, though.

About Nate Hoffelder (11117 Articles)
Nate Hoffelder is the founder and editor of The Digital Reader: "I've been into reading ebooks since forever, but I only got my first ereader in July 2007. Everything quickly spiraled out of control from there. Before I started this blog in January 2010 I covered ebooks, ebook readers, and digital publishing for about 2 years as a part of MobileRead Forums. It's a great community, and being a member is a joy. But I thought I could make something out of how I covered the news for MobileRead, so I started this blog."

5 Comments on Three Months in, Amazon’s Kindle Installment Plan is Here to Stay

  1. Fire TV gives me the option for 4 installments with 20% down on the fire tv page Nate.

  2. Thanks!

    I don’t see that offer, and this is the first I have heard of it. Thanks for the tip.

  3. I can screen shot it if you need it.

  4. Check your email for the screens when you have time Nate.

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