Amazon has gone beyond e-commerce to occupy a giant share of the retail market. With its 90 million U.S.-based Prime subscribers who spend $1,300 per year each on average, Amazon has a solid customer base. Now that so many items are available for two-day shipping, Prime customers often choose to buy items at Amazon rather than through other websites.
One of the best things about buying on Amazon is that your payment information is securely stored, which puts most purchases only a few clicks away. This setup is perfect in an environment where customers regularly buy, but many online shops don't have anywhere close to this kind of recurring customer base. By offering Amazon Pay at checkout, even your small business can offer the convenience of Amazon Pay while keeping customers on your site. If you are interested in boosting your sales this year with more payment options, you may want to consider Amazon Pay.
What is Amazon Pay?
Amazon Pay debuted in 2007 to help customers pay securely for purchases outside of Amazon. When a customer buys from a site that has the Amazon Pay button, the site uses the payment information stored on Amazon to process the payment. This functionality allows customers to make purchases on multiple sites without entering their credit card information.
How to Use Amazon Pay for Your Business
To get started, navigate to pay.amazon.com and choose the Merchant option. Amazon will ask for some information to help set you up, then provide the plug-in you will need to install to make the feature work. Once in place, visitors to your site will see a button at checkout allowing them to pay using Amazon Pay on their desktop computer or mobile device.
Amazon Pay Fees
After Amazon Pay is installed, you wil pay a 2.9 percent processing fee on each transaction. There is also a $0.30 authorization fee. Businesses outside the United States will pay a 3.9 percent processing fee.
Alternatives to Amazon Pay
Amazon Pay has been growing in popularity over the years, but it still faces stiff competition from PayPal, which is another secure payment option for your e-commerce business. Google Wallet, now called Google Pay, is also a viable payment option, especially for Android users who have their information stored with the company. These are all great payment options for your customers. PayPal reaches a wider audience than either Amazon or Google Pay, capturing 67.5 percent of the market, compared to only 1.59 percent for Amazon.
The more customer-friendly a business can make its checkout process, the more likely customers are to complete the transaction. Amazon Pay incorporates Amazon's large customer base, and offers shops of all sizes the ability to accept payment information through its interface while increasing customer convenience.
Stephanie Faris is a novelist and business writer whose work has appeared on numerous small business blogs, including Zappos, GoDaddy, 99Designs, and the Intuit Small Business Blog. She worked for the State of Tennessee for 19 years, the latter six of which were spent as a supervisor. She has written about business for entrepreneurs and marketing firms since 2011.