You may have noticed the Amazon Pay button on some websites. But what the heck is going on, and how can sellers take advantage of it?
Users are king in today's market. Customers want convenience from their online shopping journey. This includes payment methods.
Contactless payment methods are becoming more common every day. As always, Amazon wants to lead the way. That's where Amazon Pay comes in.
Read on to learn how Amazon Pay works and how it can help you increase your sales on Amazon.
What is Amazon Pay?
Amazon Pay is an end-to-end payment method. It allows users to purchase products on third-party websites.
The highlight is that customers don't have to create new user accounts. Instead, they can use billing data stored in their Amazon profile.
Users can choose any payment method submitted in their Amazon account. This way, they can pay bills, donate money, or buy products from any Amazon Pay-enabled website.
Here are some of the key features of Amazon Pay:
Bill Planner. This feature allows users to manage and pay water, sewage, electricity and gas bills. Bill Planner is exclusive to Amazon Mobile and Alexa.
voice control. Customers can use Amazon Alexa to pay bills, movie tickets and products, or make donations. Additionally, Alexa will keep them informed of delivery and payment dates.
order tracking. Buyers can log into Amazon Pay and track all orders and deliveries made using the service.
The service is available on desktop and mobile devices. Every Amazon customer can automatically use Amazon Pay anywhere.
Amazon claims that all Amazon Pay transactions are secure. Additionally, users can track every transaction in their Amazon account.
How does Amazon pay for businesses?
7% of customers abandon a website when prompted to create a user account. As an Amazon seller, you don't need to create a new account to start using Amazon Pay.
Remember, by including a checkout option like Amazon Pay in your sales strategy, you will build trust with your users.
The reasons are as follows:
While you increase your conversion rate, your buyers can enjoy a better user experience with fast and secure purchases.
Because Amazon Pay ensures secure purchases, your buyers will be more interested in continuing to buy from your store.
With every purchase, your customers are backed by Amazon's A-to-Z guarantee. Visit the Amazon Pay page for a list and conditions of products not covered by this warranty.
Since the Amazon Pay button will appear on different sites with only one account, the possibility of increased sales is almost guaranteed.
With Alexa integration, your shoppers can buy or donate with just one simple command. This certainly gives you access to the wider consumer market for Alexa devices.
How to Set Up Amazon Pay
To set up Amazon Pay, you must be an Amazon seller and have a Seller Central account. Otherwise, you can set up an account directly on the Amazon Pay website.
Amazon Pay SDK
Sellers can use the Amazon Pay SDK to simplify integration. SDK stands for "Event Notification Service Java Software Development Kit" and allows users to speed up the process by providing:
request header signature
Parse API response
Simplify transactions and payments
The marketplace will validate your integration data. Once approved, go to Seller Central to review and activate Amazon Pay.
Once Amazon Pay goes live, it works like this:
Customers can click the Amazon Pay button during checkout.
They are redirected to an Amazon-hosted website to log in.
The user returns to your site to complete the checkout.
Customers choose their preferred payment method.
Amazon Pay transfers money to your seller account.
It will take 1 to 2 business days for the payment to be completed and viewed in your bank account.
Here are the types of transactions you can manage with Amazon Pay:
Charge now. Be as traditional as possible. You can charge users after they place an order.
delay payment. Pre-orders available for backorder. You can program payments when specific sales events are met.
installment. As with the credit option, you can divide your total payment over a set period of time. It's perfect for multi-shipment or make-to-order products.
Regular payments. Think membership or subscription. This is a pay-per-use option and charges are based on business needs.
One-time purchase subscription. Used when selling items that need to be replenished.
Refund. For invalid transactions, product returns, or partial fulfillment.
Once Amazon Pay is in place, it's time to take care of fulfillment. This is one of the advantages Amazon sellers can take advantage of.
The Multi-Channel Fulfillment (MCF) program gives sellers access to Amazon's fulfillment machines. Registered merchants can guarantee delivery within 1, 2 or 3 to 5 business days.
Sellers using Amazon Pay can also use MCF to improve the customer experience. Here's how:
Integrate MCF through your Seller Central account.
Ship and store your inventory in Amazon warehouses. Track monthly storage charges.
Integrate Amazon Pay into your online store.
Watch customers use Amazon Pay to place orders on your e-commerce sales channels.
Fulfill any order with Amazon MCF. Delivery time is 1 day (priority), 2 days (expedited) or 3-5 days (standard).
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 existing Amazon inventory to serve customers through MCF.
PayPal vs Amazon Pay – What Sellers Need to Know
PayPal has been the preferred online payment option for many years. But Amazon Pay is gaining ground among sellers. Let's compare the two solutions and find out which one is best for you.
Prices and Fees
There are no startup costs for using Amazon Pay or a standard PayPal account. However, some PayPal features do require a monthly fee. For example, Pay flow Pro costs $25 per month.
Both services charge transaction and authorization fees.
Here is a brief overview:
PayPal is leading the way in this regard. The service is available in more than 200 countries. Also, it supports 25 currencies.
For its part, Amazon Pay is currently available in 18 countries. Currently, it supports 12 major currencies around the world.
Checkout and Payment
Customers don't need to leave the seller's website during checkout. PayPal does require users to complete all transactions through its website.
As for payment methods, PayPal only requires a credit card to send and receive payments. Also, the service accepts bank accounts.
The only requirement to use Amazon Pay is to have an active Amazon account. Also, the marketplace accepts most debit and credit card options.
Both Amazon and PayPal are trusted for their security standards. Amazon Pay is powered by Amazon's A-to-Z Guarantee protection. Users can buy from reliable sellers and get compensated for unsatisfactory sales.
PayPal is always aware of anything suspicious. In fact, it might be frustrating for some people. Unusual behavior may result in account lockout.
Additionally, high chargeback rates or customer complaints may limit your account functionality. PayPal can also hold the payment for 3 weeks if something goes wrong with the transaction.
As you can see, each option has its pros and cons. But you don't need to choose one of them. Offer your customers both avenues to increase engagement and conversions.
One user account and one payment option. That's what Amazon Pay is all about. So you can expect to see more online stores offering this service in the future.
Amazon Pay eliminates the need to create multiple shopping accounts. Additionally, users can manage all payments from the Amazon hub they know and trust.
Therefore, Amazon Pay can help you provide a more stylish shopping experience. This payment method will increase conversion rates and increase customer satisfaction.
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