With so many payment providers out there, selecting the right ones for your business can be cumbersome. We’ve compiled the top questions merchants ask us about Amazon Pay to help you make an informed decision about whether Amazon Pay is right for your business.
I already have too many payment options. Why should I add Amazon Pay?
According to the UX experts at the Baymard Institute, 8% of people abandon [1] a site because their preferred payment method isn’t offered. If almost one out of every 10 of your customers is abandoning your site because you don’t offer the right payment options, it’s worth reconsidering your checkout experience. With Amazon Pay, you can help reduce cart abandonment by making it easier for hundreds of millions of Amazon customers to check in and out on your site using the information already stored in their accounts — including both their shipping addresses and payment details. Remember that there’s not a magic number of payment methods your site should offer. Xsolla, for example, offers over 700 payment methods, making it easy for game developers to choose which payment options they want to offer gamers in different markets around the world.
How is your payment service different from other online payment options?
Amazon Pay enables millions of Amazon customers to shop on tens of thousands of sites around the globe, using the information already stored in their Amazon accounts. Beyond offering consumers a trusted, familiar checkout, Amazon Pay also helps businesses transform their customer journey by offering ways to create innovative connected experiences.
Amazon Pay is helping businesses adapt to and anticipate the expectations of today’s connected shoppers with Alexa. Our 2019 research on the connected consumer reveals that only half of shoppers (52%) are satisfied with the ability of brands today to offer a seamless and continuous shopping experience across channels.[2] That means that there’s an opportunity for your business in optimizing your multichannel experiences.
Our research also reveals that almost half of consumers show an interest in using a voice service to check the delivery status of their order. Now, with Alexa Delivery Notifications, customers can find out when their order is on its way and when it’s been delivered just by using their voice.[3] This is one way that Amazon Pay is helping merchants make their customers’ post-purchase experiences even more convenient and natural through hundreds of millions of Alexa enabled devices.
In an increasingly connected world where our customers seek a seamless experience across channels and devices, we see it as a huge perk that we are able to innovate with Alexa through Amazon Pay.
Kate MacCabe, Director, Product Management, Rothy’s
By embracing voice commerce, today’s merchants can take convenience to the next level, exceeding customers’ expectations in an age where personalized, seamless experiences are what make the difference. Amazon Pay’s BuyerID functionality also helps businesses assign a unique, consistent identifier for each Amazon Pay customer to help them seamlessly move from one shopping channel to another.
What’s the ROI of adding Amazon Pay?
Amazon Pay can help merchants boost revenue by increasing conversions among hundreds of millions of valuable Amazon customers. With Amazon Pay, you can offer a trusted, convenient experience and one familiar log-in to lower cart abandonment and optimize your CX.
For example, during an early upgrade opportunity sponsored by Amazon Pay, Felix Gray experienced a 5% increase in sales conversions and a 70% faster checkout with Amazon Pay compared to their native checkout. Other brands have also seen similar results, including Cymax, 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. NatoMounts reports that Amazon Pay drives credible customers who are less likely to claim chargebacks.
With Amazon Pay, I have no concerns about chargebacks or fraud; I know the traffic is legitimate. I wish 100% of our transactions were with Amazon Pay.
Brandon Chatham, Founder and CEO, NatoMounts
To help you understand our pricing model, we’ve created a simple tool to simulate potential ROI based on sales lift and processing fees. If you want 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.
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. Depending on your provider, it could be as easy as registering your business with Amazon Pay and enabling the payment solution in your administration panel. Our technical team provides resources to make the integration process easier as well as tips to optimize a custom integration.
Our business has a strong, recognizable brand. Will offering Amazon Pay dilute our 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 #3 in reputation by a 2020 Axios Harris Poll survey.[4]
According to our research, 48% of consumers look for a well-known payment service like Amazon Pay at checkout — that’s even more important for getting a customer to trust your site than recommendations from family and friends (43%).[1] The convenience and trust associated with the Amazon brand makes it a key element in creating secure, simple digital experiences.
Moreover, about one in five people abandon one or more orders because they don’t trust the site with their credit card information.[5] Amazon Pay offers luxury businesses an easier way to connect to over 150 million Prime members.[6] With 91% of Amazon Pay customers saying they would use Amazon Pay again,[7] this is your opportunity to leverage Amazon’s expanded network to help build customer engagement and loyalty.
What is Amazon Pay’s pricing structure?
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’re 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.
It’s worth noting that when it comes to refunds, Amazon Pay puts the merchant first, always refunding the variable processing fee — whether their customer makes a $1,000 or $1 purchase. You can learn more about our policies here.
Where can I use Amazon Pay?
No matter where customers are located, Amazon Pay allows to them use their Amazon account to pay for whatever they love, wherever they find it. Amazon Pay is available in many parts of the world including the U.S., the U.K., and throughout much of Europe.
Amazon Pay provides multi-currency functionality to companies that are operating in the EU, making it easier for customers to shop from anywhere. For shoppers, their payment automatically converts into their base currency, disbursing it into a single bank account. In other words, thereby reducing refunds and chargebacks. For merchants, multi-currency functionality may be able to reduce operational costs, helping them expand more quickly. In the EU, multi-currency eliminates the need to manage numerous currencies manually or set up foreign legal entities and bank accounts. This is only for merchants offering Amazon Pay who have an EU bank account in the SEPA region.
Amazon Pay’s multi-currency feature has enabled Tower London customers to pay in the currency of their choice and avoid currency conversion charges. It further decreases the chance of chargebacks or refunds because Tower London customers are less likely to discover any hidden charges. Tower London has observed an increase in ex-UK European revenue post Amazon Pay adoption.
How can Amazon Pay improve our customer experience (CX)?
Convenience is a key factor to the success of any online customer experience today. Offering a frictionless checkout is one way to keep customers from leaving your site before they finish their purchase. Unfortunately, 37% of consumers abandon a site because they’re asked to create an account.[8] Without account creation, merchants miss a crucial opportunity to learn more about who their customers are. By enabling Amazon Pay, you can capture your customers’ information on their very first visit to your site, skipping account creation during the checkout process. Amazon Pay lets them use their Amazon account to sign in to your site or app with just a few clicks, adding another level of convenience for hundreds of millions of Amazon customers that may be browsing your site. This functionality also lets you leverage the Amazon brand that customers trust — while still allowing you to capture your customers’ name, verified email address, and postal code so that you can build more personalized experiences for them.
Register your business today to start enabling a fast, trusted experience for hundreds of millions of Amazon customers.
Contact us for more information.
[1]Baymard Institute, Checkout Optimisation Report 2020
[2] Amazon Pay, Global Connected Consumer Study, 2019.
[3] Service not available in all jurisdictions
[4] Axios Harris Poll 100, Corporate Reputation Rankings, July 2020.
[5] Baymard Institute, Checkout Optimization Report: 6 Ways to Retain Shoppers at Checkout, 2020.
[6] Amazon data, 2020.
[7] Consumer Net Promoter Score (NPS) Surveys: Conducted by Amazon Pay in 2019 among US, UK, DE, FR, IT, and ES consumers who had used Amazon Pay in the first 12 months preceding to the survey launch date.
[8] Baymard Institute, Checkout Optimization Report: 6 Ways to Retain Shoppers at Checkout, 2020
Baymard Institute, Checkout Optimization Report: 6 Ways to Retain Shoppers at Checkout, 2020.