Common questions about Amazon Pay
Answers to common inquiries from merchants considering Amazon Pay for their business.
With so many payment providers out there, selecting the right one(s) for your business can be cumbersome. We’ve compiled the top 8 questions we’ve been asked by merchants to help you make an informed decision about whether Amazon Pay is right for your business.
Q: Will Amazon Pay dilute my product offering and brand?
Offering Amazon Pay on your site is actually an opportunity to benefit from one of the most trusted brands in the industry, ranked #1 in reputation as determined by a 2018 Nielsen Harris Poll survey.1 In fact, 78% of people say trust is a very or extremely important factor as to where they choose to shop.2 Moreover, 19% of people abandoned one or more orders in 2017 because they didn’t trust the site with their credit card information.3
Since we are so new, we are definitely known by the company we keep. There is clearly a marketing benefit to being associated with a trusted brand like Amazon.
- Mike Janes, Chief Marketing Officer, Vacatia
Q: Amazon is great for consumers; why is it great for merchants?
Half of items sold through Amazon worldwide are from sellers that offer their products through Amazon stores.4 Part of Amazon’s business is helping your business. In fact, Fulfillment by Amazon (FBA) shipped billions of items for small and medium-sized businesses selling on Amazon worldwide in 2017.5
Businesses continue to look for new ways to build and expand both how they are selling and whom they are selling to. Amazon provides a number of solutions to help businesses gain a competitive foothold. When it comes to a business’s omni-channel strategy, well-informed sellers understand the importance of contextual commerce and listing products in the places where consumers spend their time. Many shoppers start their search on Amazon.com6. By selling through Amazon.com, you can also increase your sales and access new customer.
By incorporating Amazon Pay into your retail experience, you can grow your business by appealing to hundreds of millions of users with Amazon accounts shopping outside Amazon websites. With programs like Curator, you can leverage Amazon Advertising’s capabilities to provide customers with highly relevant advertisements from your brand.
What is Amazon Pay’s pricing structure?
Sometimes digital wallets have different pricing models. Amazon Pay clearly lays out the fee schedule so there are no hidden fees or surprises on what you are paying. When merchants review their total processing costs from other payment methods, their net effective rate (card fees, maintenance, account, cross border fees, etc.) can be higher than Amazon Pay’s transparent pricing rate. More information here.
Some merchants we work with have increased conversion rates with a significant impact to their revenue growth. For example, in the first three months after adding Amazon Pay, the American luxury lifestyle brand Shinola found that 19% more mobile users and 5% more desktop users completed their online purchases.
Amazon Pay can also help to increase average order values. For example, the mobile phone company Ting saw a 30% higher average order value for customers who check out using Amazon Pay versus other payment methods. And AuthenticWatches.com has increased its average order value by 33% since adding Amazon Pay.
When is the right time to integrate a payment solution?
Amazon Pay can streamline checkout, reducing the number of steps to purchase, which could mean fewer cart abandonments, higher purchase conversion rates, and the ability to make your numbers.
The quick and easy checkout experience Amazon Pay offers is especially critical for merchants that experience seasonal spikes in order volume. Any company that relies on volume orders over the holidays, for example, may significantly benefit from the convenient checkout experience Amazon Pay offers.
A great example is The Entertainer, which owns TheToyShop.com. At The Entertainer, 70% of mobile shoppers are seasonal customers who make purchases during the holidays. Amazon Pay has helped the company accommodate large spikes in traffic with checkout times that are 40% faster than their native checkout—leading to a 14% higher conversion rate than credit cards and 10% year-over-year growth. Learn more here.
Another opportunity to integrate now is take advantage of the voice opportunity. With the adoption of voice for multiple retail scenarios, commerce is moving to the next frontier—and Amazon Pay is helping businesses adapt to the expectations of today’s connected shoppers. Amazon Pay’s mandate is to help people discover whatever they love, wherever they ﬁnd it, by making Amazon innovations available to third-party merchants. To accomplish that, Amazon Pay for Alexa Skills was recently released in the US, allowing merchants to sell goods and services using Amazon’s simple voice purchasing flow. As voice commerce moves to the mainstage, innovative brands are rapidly building a voice presence. By embracing voice commerce, today’s merchants can take customer convenience to the next level, exceeding customer expectations in an age where personalized, seamless experiences are what make the difference.
I already have too many payment options. Why should I add Amazon Pay?
According to a checkout optimization report by the Baymard Institute, 8% of people abandon a site because there weren’t enough payment methods that they preferred. Sometimes, it’s not even about too many, but offering the right options. It’s important that you make it as easy as possible for people to check-in and check out on your site. With Amazon Pay you’re making it easier for hundreds of millions of Amazon customers to check-in and check out using the information already stored in their accounts (both shipping and payment details). There isn’t a magic number of payment methods. Xsolla offers over 700 payment methods, making it easy for game developers to pick and choose which payment options they want to offer gamers in different markets around the world.
How complex is Amazon Pay’s integration process?
For merchants already working with a major shopping cart solution provider, you can easily integrate Amazon Pay into your commerce experience without a major time commitment for your business. Depending upon your provider, it could be as easy as enabling the payment solution in your administration panel.
We know from experience that the integration process can often prove to be difficult. Amazon Pay was easy to integrate into our purchase path, and Amazon was over the top with support.
- Ash ElDifrawi, Chief Commercial Officer at Gogo
Is Amazon Pay available globally?
No matter where customers are located, their log-in information and Amazon.com identity follows them, allowing them to use Amazon Pay for whatever they love, wherever they find it. Amazon Pay is available in many parts of the world including the US, the UK, and throughout much of Europe. What’s more, in 2017, tens of millions of customers in 170+ countries have used Amazon Pay to make a transaction.
Amazon Pay provides multi-currency functionality to make it easier for your customers to shop. For your buyers, their payment automatically converts into their base currency, disbursing it into a single bank account. No surprises for your buyers—they will be charged the amount they see, thereby reducing refunds and chargebacks. For merchants, they can reduce the operational costs, and expand more quickly. In the EU, multi-currency eliminates the need to set up foreign legal entities or bank accounts or to manually manage multiple currencies. There is only one Amazon Pay and one EU bank account anywhere in the SEPA region.
Do consumers need to go through another sign-up process to activate Amazon Pay?
One of benefits of being an Amazon customer is that you are able to use Amazon Pay without any additional steps. Amazon Pay lets you use the payment methods that you already use on Amazon.com to pay for goods and services on third-party websites wherever Amazon Pay is accepted. You can make secure purchases from third party (i.e. non-Amazon) websites that accept Amazon Pay, without having to re-enter your payment information.
With Amazon Pay, you don’t have to remember your credit card details, which address to send to, or where your sister lives—it’s all there in the address book. Our customers can just click and checkout, and that is what is generating these exciting results.
- Dan Hartley, AllSaints’ Global Head of Digital Commerce
How often do you disburse funds? Are there scenarios where you withhold funds?
You can set your disbursements so that you receive them on a daily basis. In some cases, Amazon Pay will withhold a minimum balance in your account to secure payment obligations that may arise after delivery, such as refund, charge-backs, or A-to-z Guarantee claims among others. We call this minimum balance a reserve.
For more information, contact us.
1Nielsen, Harris Poll. 2018.
2PYMNTS.com Survey, 2015.
3Baymard Institute, 2017.
4Investor Relations, April 2018
5Investor Relations, February 2018.
6Amazon: The Big E-Commerce Marketing Opportunity for Brands. Kenshoo, 2017.