Here’s how Amazon Pay could benefit your bottom line

Amazon Pay offers transparent pricing without any hidden fees, while also helping improve sales lift, fraud prevention, and more.

Originally published June 3, 2020

If you’re curious how Amazon Pay can affect your business’s bottom line, you’ve come to the right place. Check out our pricing simulator below for a quick glimpse at the potential return on investment that Amazon Pay can offer.

Not all digital payments are the same, especially when it comes to pricing models. Amazon Pay clearly lays out the fee schedule so there are never any surprises about what you are paying for, and its value. When merchants review their total processing costs from native payment methods, their net effective rate (card fees, maintenance, account, cross border fees, etc.) can be higher than Amazon Pay’s transparent pricing rate.

See the pricing simulator here

Growing your business with payments

Beyond a transparent pricing model, Amazon Pay can also help you improve your online shopping experience, helping merchants boost revenue by increasing conversions among valuable Amazon customers. By providing your customers with a trusted, convenient experience and one familiar login, you can increase conversions and lower cart abandonment.

Sales lift is also part of the value that comes with enabling hundreds of millions of Amazon customers to checkout on your site. For example, AllSaints experienced a 34% higher conversion rate, 15% higher order values, and a 70-second reduction in checkout time after implementing Amazon Pay. Other brands have also seen similar results including Cymax, Felix Gray, Autopets, and Volt Lighting.

Businesses can also help reduce the risk of incurring bad debt by leveraging the same advanced fraud prevention technology used by One business that has reported experiencing a significant decrease in fraud with Amazon Pay is Since implementing Amazon Pay, has experienced a 90% decline in fraudulent payment transactions versus some of its other payment methods.

Getting a return on your investment with Amazon Pay

To help you understand our pricing model, we’ve created a simple tool to simulate potential ROI based on sales lift and processing fees. This tool focuses on the two processing fees that typically occur during a domestic payment transaction – a fixed authorization fee and a variable processing fee – while also taking into account the potential incremental conversion lift. You’ll notice this simulator includes sales lift, but doesn’t include simulations for reducing bad debt, increasing average order value, or processing fees for refunds. For a deeper assessment of your potential ROI, an Amazon Pay team member is ready to help.

It’s also worth noting that when it comes to refunds, Amazon Pay’s approach to refund processing fees is a win-win-win for merchants, always refunding the variable processing fee – whether their customer makes a $1,000 or $1 purchase. You can learn more about our policies here.

ROI conversion simulator

The estimates provided by this tool are only calculations based on inputs you provide and are not a guarantee, representation, or warranty of any result, including without limitation, your conversion rates, cost of payments, or expected profitability.

This calculator only explores one way Amazon Pay can affect your bottom line. To receive a full assessment of your potential return on investment with Amazon Pay, contact us. You can also find more information on our pricing and fee structure here.