You may have already noticed the Amazon Pay button on some websites. But what is it all about and how can sellers take advantage of it?
The user is king in today’s market. Customers expect convenience from their shopping journeys online. And that includes payment methods.
Contactless payment options are more common each day. And as usual, Amazon wants to lead the trend. Here’s where Amazon Pay comes in.
Read on to learn how Amazon Pay works and how it can help you boost your sales on Amazon.
Amazon Pay is an end-to-end payment method. It allows users to pay for products on third-party websites.
The highlight is that customers don’t have to create a new user account. Rather, they can use the billing data stored in their Amazon profiles.
Users can choose any payment method filed in their Amazon account. This way, they can pay bills, make donations, or buy products from any website featuring Amazon Pay.
Here are some Amazon Pay key features:
The service is available on desktop and mobile devices. Every Amazon customer can use Amazon Pay automatically, wherever they see it.
Amazon claims that all Amazon Pay deals are secure and safe. Plus, users can keep track of every transaction in their Amazon accounts.
According to the Baymard Institute, 37% of customers abandon a website when prompted to create a user account. And as an Amazon seller, you do not need to create a new account to start using Amazon Pay.
Keep in mind that by including a checkout option like Amazon Pay into your selling strategy will build trust with users.
To set up Amazon Pay, you must be an Amazon seller, with a Seller Central Account. Otherwise, you can set up an account directly on the Amazon Pay website.
Sellers can use an Amazon Pay SDK to make integration easier. SDK stands for “Event Notification Service Java Software Development Kit” and allows users to speed up the process by providing the following:
Another great option is to use one of Amazon's partners. These are Shopify, Magento, BigCommerce, and Zuora.
Some certified partners are WooCommerce, Hitachi Solutions, CoreCommerce and Miva. You can review the full list here.
These service providers already offer Amazon Pay integration. Thus, they can ease up the integration process for sellers.
Watch this video to find out more about registering for Amazon Pay.
The marketplace will verify your integration data. Once you’re approved, go to Seller Central to review and activate Amazon Pay.
Once Amazon Pay is live, here’s how it’ll work:
It takes from 1 to 2 business days to complete the payment and see it in your bank account.
Here are the types of transactions you can manage with Amazon Pay:
Check out this video to review what you need to do before launching Amazon Pay.
Once Amazon Pay is in place, it’s time to take care of fulfillment. This is one of Amazon’s stronger points that sellers can use to their advantage.
The Multi-Channel Fulfillment ( MCF) program allows sellers to access Amazon’s shipping machine. Enrolled merchants can guarantee delivery in 1, 2 or 3 to 5 business days.
Sellers using Amazon Pay can also use MCF to improve customer experience. Here’s how to do it:
MCF is currently available in the US, Mexico, Italy, Spain, Japan, Canada, France, Germany, Australia, and the UK.
Note that FBA sellers can use their Amazon-existing inventory to serve customers through MCF.
PayPal has been the go-to online payment option for years. But Amazon Pay is gaining ground among sellers. Let’s compare both solutions to find which is best suited for you.
There is no startup cost to use Amazon Pay or a standard PayPal account. However, some PayPal features do require a monthly fee. For example, Pay flow Pro charges $25 per month.
Both services charge transaction and authorization fees.
Here’s a brief overview:
PayPal takes the lead here. The service is available in more than 200 countries. Plus, it supports 25 currencies.
For its part, Amazon Pay is currently available in 18 countries. For the moment, it supports 12 major currencies around the world.
Customers don’t need to leave a seller’s site when checking out a sale. PayPal does require users to complete all transactions through its website.
As for payment options, PayPal only requires a credit card to send and receive payments. Plus, the service accepts bank accounts.
The only requisite to use Amazon Pay is to have an active Amazon account. Plus, the marketplace accepts most debit and credit card options.
Both Amazon and PayPal are trusted for their security standards. Amazon Pay is backed by Amazon’s A-to-Z Guarantee protection. Users can buy from reliable sellers, and get reimbursed for unsatisfied sales.
PayPal is ever aware of any suspicious content. Actually, this may prove frustrating for some. Unusual behavior could lead to the locking of the account.
Besides, high chargeback rates or customer complaints may limit your account features. PayPal can also hold payments for 3 weeks, in case of a problem with transactions.
As you can see, each option has its benefits and setbacks. But you do not need to choose one over the other. Provide both gateways to customers to boost engagement and conversions.
One user account and a single payment option. That is what Amazon Pay is all about. So, you can expect to see more online stores featuring this service in the future.
Amazon Pay removes the need to create multiple shopping accounts. Plus, users can manage all payments from the Amazon hub they know and trust.
So, Amazon Pay can help you deliver a sleeker shopping experience. This payment method will boost conversions, and increase customer delight.
AMZ Advisers is an eCommerce and digital marketing agency focused on the Amazon platform. We help brands and manufacturers strategize, plan, and execute growth strategies for the Amazon platform. Our team manages the full Amazon life-cycle including product research, listing optimization, inventory optimization, advertising management, competitor benchmarking, and performance reporting.
Discover opportunities. Maximize your sales. Grow your Amazon business!