Advice? Buyer would like to pay in installments.

[Former_Member]

Hello,

I've received an inquiry from a potential buyer who would like to purchase 2 items in my shop and pay in "a few" installments. I am open to this request but would like to know what the best practices are.

Any tips, feedback or advice on the subject would be appreciated.

Thanks everyone, greatly appreciated!

[Former_Member]

I've not experienced anything like this (difficult with only 10 sales!) but I don't see a problem with it as long as, of course, you only send their purchases once you have received full payment. I would also set out the number of instalments and amounts you are happy with at the outset.

[RebeccasRoomUK]

I agree with Camilla - unless you are terrible with money and are likely to lose count. Spell it out to your customer, how much money and when, non-returnable and only send out the goods when you have been paid in full, like normal!

[Former_Member]

I did something similar for a client who was actually purchasing event decorating services through my Etsy and it worked quiet well. you do however have to pay the transaction fees on each payment so you might want to think about that depending on the amount and how many payments and maybe add an additional fee to cover those.

Good Luck

[Former_Member]

Thanks Camilla & Rebecca, I was thinking the same thing about laying out a payment schedule etc.

Good to hear Jackie!
So once the seller and buyer agree on payments and schedule, listings are created for each installment? Please confirm that's the way it's done. I'm okay with the transaction fees applying to each.

If there's anything else, please let me know.
Thanks again :)

[TheRusticHome]

I have done this with plates before, I simply list the number of plates she was ready to pay for and I noted in each listing which payment it was, etc. so she could easily keep track as well. You just need to agree on a payment plan with your buyer, and then list each payment with all of the info for you both so you don't lose track of where they are at, depending on how many payments they are doing. You can call it Layaway, or whatever you want to...
Don't forget about shipping though, as you don't them overpaying on that or underpaying either...
Hope this helps.

[Former_Member]

Thank you for clearing that up Rustic Home, it helps very much!

[Former_Member]

Make absolutely sure that you both have a concrete agreement and both know the terms and expectations. Then go for it!

[Former_Member]

Stores, like Walmart and Kmart, call this payment plan, "Layaway." Layaway was very popular when I was young (this was just when credit cards were coming out). Spelling out the rules for the Layaway including when and how much for each payment would protect you and the buyers. You could put up a Reserved Listing for each payment.

[Former_Member]

Thanks so much everyone...everything is set-up and the buyer has been receptive :)

Fingers crossed, hope all goes well in the long run!
(Makes a lot of sense though, after what happened with the economy, people should have options other than credit).

[HopscotchCouture]

I have many clients that purchase from me on layaway. I have found the simplest way for me is to have my buyer put the item or items in their cart and check other for payment option. I'm a bit laid back with the terms, I let the customer decide how much the payments will be and how long they will need to pay the item in full. I issue them invoices via pay pal for their payments, keeping track of their balance in the note section of the invoices. Once they have paid their balance off, I mark the item as paid on their Etsy invoice and ship out the order.

I find it simpler than to make a separate listing for each payment. There are times I have several clients doing layaway and this is the system that works for me.