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What is Amazon Pay? | Marketing-Ideas

Changes in the Facebook & General Consumer Landscape

You have probably had the experience of finding a dreamy product from Amazon Fresh, putting it in your basket and then hesitating. Personally, you may find yourself throwing things at the checkout. At home, the obstacle comes when it is time to enter your payment information in the payment portal. If you need to pick up a credit card from another room, you can say “no” to your impulse.

As an e-commerce company, you want to remove as many barriers as possible for your customer that hit “order”. Those who provide Amazon marketing services know that even a small step can prevent the potential customer from completing the checkout. Understanding what Amazon Logistics and other Amazon services are is just part of it.

For this reason, you need to weigh the benefits of Amazon Pay, Amazon’s e-commerce processing solution from across the Internet.

What is Amazon Pay? And how can it help your business grow? Let’s see.

Amazon Pay 101

As a customer, you have had dozens of different experiences at checkout:

Payment with saved Stripe credit card information based on your phone number PayPal checkout Amazon Pay checkout Manual entry of credit card information

How many times have you left your shopping cart or stopped the payment process? Is it because you do not know how to use amazon coupons?

As an e-commerce business, connecting to the Amazon launchpad may make things smoother. Still, it is also important to know which payment method is both easy for your customers and cost effective for your business.

Enter Amazon Pay.

82% of US households have an Amazon Prime membership. The other 18% are likely to buy the occasional item from the e-commerce giant. This means that it’s very likely that your potential customers are already saving one or more payment options with Amazon.

Let us then take a closer look at the benefits of the platform.

The benefits of using Amazon Pay

As we have already noted, the No. 1 benefit of Amazon Pay is the high probability that your customers will already enjoy using Amazon to store payment information and make purchases. This means they do not have to go through multiple pages as they enter their delivery address, payment information and shipping location. Instead, they can check out with just a few clicks.

This streamlined payout process has a few immediate consequences:

According to Amazon, some Amazon Pay customers report that the conversion rate increases by up to 50% 2. Others report fewer cart departures In one case, a client saw a 67% drop in the number of customers who put items in their shopping cart and then thought twice .

In addition to these metrics, Amazon Pay is a versatile checkout solution that can customize your needs across different e-commerce sales channels. The platform is:

Secure – Thanks to phishing schemes and huge hacks, customers are more than ever concerned about the privacy of their financial information. Amazon’s contactless payment platform is secure because third party merchants (it’s you!) Never receive customers’ financial information. Because people are already using Amazon, they are likely to consider the brand reliable. Designed for compatibility – Even if you sell on multiple sales channels, it’s effective to use a single payment platform. This will help you keep track of your sales and transaction costs. You can use Amazon Pay almost anywhere you sell goods or services online, from your own site to Etsy, eBay, social media and beyond. Limited redirects – When you enable Amazon Pay on your site, users can check out without going to another site. In some cases, they may need to log in to Amazon through a pop-up window, but stored data should make the process a breeze. Optimized for mobile – Do you have a higher conversion rate for customers on desktops than on mobile devices? Your mobile checkout option may be to blame. Amazon Pay works just as well on smartphones as it does on larger devices. Integrated with voice – Voice may not make up the majority of your earnings yet. However, as customers invest in Alexa and similar smart home devices, they are more likely to search for your product and continue to check everything by voice. Customizable – Do you need to accept deferred payments for reordered items? Recurring payments for a subscription? Split payments on super expensive inventory? Give your customers options with Amazon Pay.

Amazon A-to-Z warranty

In addition to the benefits we have already outlined, Amazon is extending its famous A to Z warranty to some items sold by third-party sellers.

This guarantee ensures that goods arrive in good condition and on time, which can make customers so much more confident in their purchases. Of course, you also need to maintain your termination of the agreement with Amazon by refunding customers and resolving complaints at your end.

Which stores accept Amazon Pay?

According to Amazon, tens of thousands of websites use Amazon Pay as one of their payment options. With an available price, it’s no wonder why.

How much does Amazon cost?

No payment services are free. However, there are no monthly fees for using Amazon Pay. The amount you pay Amazon is based on the value of your transactions.

How much can you expect to pay per. Sales when using Amazon Pay?

Amazon Pay charges 2.9% of each transaction plus an administration fee of $ 0.30 If applicable, the platform also charges VAT Excessive transactions are subject to additional fees

Let’s look at an example.

When you sell a $ 10 product in the United States, you will be charged $ 0.29 of the sale plus $ 0.30 for processing, resulting in a total fee of $ 0.59.

How does this compare to competing products?

Google Pay – For a merchant selling products under $ 3,000, transaction fees are almost identical. However, you can see net savings on Google Pay if you sell more expensive products.3 PayPal – PayPal’s transaction fee is exactly the same as Amazon Pay. While the standard plan is free, you may need PayPal Payments Advanced or PayPal Payments Pro to integrate PayPal across your various sales channels. Both of these services come with a monthly price ($ 5 and $ 30, respectively). 4 Stripe – Stripe also costs $ 0.30 per. Transaction plus 2.9% of sales, as long as you make less than $ 1 million in annual sales.

Since so many of these platforms have the same price, this factor can be eliminated from consideration.

The disadvantages of Amazon payments

Now that you know that Amazon is as affordable as its competitors, your next question is whether there are any potential negatives. Depending on your specific customer base, you need to weigh the following factors:

Need an Amazon Account – As we noted, the majority of Americans subscribe to Amazon Prime. But there are also some individuals who prefer not to patronize Amazon and therefore do not have an account. If your target audience loves to shop small, they may not have Amazon accounts and need another payment option. Amazon may close your account – Certain products are prohibited from paying via Amazon Pay. These include alcohol, supplements, smoking products and some services. Carefully check the company’s acceptable use policy and consider another payment option if your product is “unacceptable”. Also, be sure to file customer service complaints rather than relying on the A-to-Z warranty.

Since there is no monthly service charge, it is easy enough to activate Amazon Pay along with another payment option.

Other factors affecting conversion

If you already use payment processing through PayPal or Stripe, adding Amazon Pay to your site is unlikely to dramatically improve your conversion rate. But ideally, more opportunities lead to more sales and more room to play with your marketing budget.

After all, the real checkout experience is only part of a successful e-commerce platform. In addition to your payment options, consider the following aspects of your campaign:

Sharp design – From social media campaigns to influencer partnerships, tempting images and branding are the key to getting clicks. If you want more web traffic, start with your visual presence. Convincing copy – If customers arrive at landing pages without placing items in their carts, there may be a problem with the product description or CTAs. Try adding another CTA higher up the page. Optimized checkout experience – The moment a customer puts an item in their shopping cart is the most important part of the sales journey. Right now, they’re ready to buy, so it’s pretty easy to persuade them to add “similar items” or things, “that customers liked too.” Abandoned emails – If customers leave products in their carts, it does not mean they are gone for good. Make sure your email drip campaigns reach customers who have had a different mindset before hitting “order”.

Setting clear benchmarks for clicks and conversions can help you evaluate the ongoing success of your campaigns.

Stock up on insights from Power Digital

Today, there are more potential opportunities to increase revenue from e-commerce than ever before, from viral TikTok campaigns to new payment processing solutions to Pinterest cards.

How do you know which one will really make a difference and help your business achieve e-commerce success?

At Power Digital, we are experts in all aspects of e-commerce. Are you interested in improving your abandoned wagon rate? Contact us to learn more about how we can increase conversions and help your business grow.


Digital Commerce 360. 82% of US households have an Amazon Prime membership. 1

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