Originally published June 3, 2020

Curious how Amazon Pay can affect your bottom line? Check out our pricing simulator below for a quick glimpse.

Not all digital payments are the same and that includes pricing models. Amazon Pay clearly lays out the fee schedule so there are no 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

What you may not be aware of, is all the ways Amazon Pay can improve your online shopping experience. Amazon Pay can help enable merchants to 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 & 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 their risk of incurring bad debt by leveraging the same advanced fraud prevention technology used by Amazon.com. One business that has reported experiencing a significant decrease in fraud with Amazon Pay is AuthenticWatches.com

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 and 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 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

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