5 Ways Amazon Pay Reduces Costs and Increases Sales

Wouldn’t it be nice to tap into Amazon’s customer base, whether you sell on Amazon or not? Amazon is the undisputed juggernaut of online retailers, with over 78% of global customers buying from them in the last six months.

Can other eCommerce retailers benefit from Amazon? Yes, by adding Amazon Pay to their payment methods. Amazon recently teamed up with Worldpay, a company that processes over 40 billion transactions, worth $1.7 trillion per year. Not only does it increase Amazon’s reach considerably, but it gives our international merchants the same advantage.

Websites that offer this digital wallet to their international clientele will find it easier to close the purchase. It allows shoppers to pay using their Amazon account without having to re-enter all their contact and shipping info. It’s already integrated with their Amazon account. To learn more, check out this resource on the importance of digital wallets for eCommerce.

Here are five more reasons why we recommend Amazon Pay to our clients.

1.  Minimize Costs

Amazon Pay reduces costs in two ways. First, they don’t charge set up fees or monthly management fees like other payment gateways. That’s an immediate upfront saving over other payment options.

Secondly, substantial savings come from their fraud detection and prevention technology. By avoiding fraud and the ensuing bad debt, merchants can prevent significant losses.

Since implementing Amazon Pay, we have experienced a 90% decline in fraudulent payment transactions versus some of our other payment methods.

Berj Kacherian, President, AuthenticWatches.com

Amazon Pay uses the same fraud protection tech as Amazon.com. For merchants, that means they don’t get charged for fraud-related chargebacks.

2.  Help Increase Sales

Users enjoy the convenience of paying with just a few clicks. Amazon Prime members account for over 50% of shoppers who typically spend more.

Amazon Pay has processed more than $70k in revenue for us.

Srdjan Popovic, Crossrope.com

The convenience and lower checkout times increase sales. One fashion brand, AllSaints, reported a 15% higher order value within two weeks of adding Amazon Pay. They also said that 24% of customers used it to checkout.

One reason why Amazon Pay improves sales is that it appeals to younger buyers, the largest segment of shoppers who use e-wallets. This group uses them twice as much as other age groups. Check out the latest poll results:

• Gen Z: 10.4%
• Millennials: 8%
• Gen X: 5.62%
• Baby Boomers: 2.3%

If you are targeting Gen Z and Millennials, we recommend integrating the app into your store.

3.  Faster and Easier Checkout

The biggest hurdle for customers at checkout is having to create another account merely to finish paying. 37% of customers don’t bother. They abandon their carts and shop elsewhere with less hassle.

British toy retail giant, The Entertainer, reported that their customers experienced 40% lower checkout times than other payment methods. As a result, they grew 10% per year and had a 14% higher conversion rate since adding Amazon Pay.

It’s easier for mobile shoppers too, which happens to be how three-quarters of their customers prefer to shop.

4.  Alexa and Connected Commerce

amazon

Voice interfaces and chatbots continue to increase in popularity. There are over 74.2 million US smart speaker users. A quarter of them uses these convenient tools for shopping at least once a month.

Knowing how important voice-assisted shopping has become, Amazon has integrated its payment app into Alexa. The advantage to merchants is the ability to provide proactive shipment delivery notifications. This helps build customer trust and reduces customer calls.

Customers can use their buyer ID to order and reorder by voice. It’s as easy as saying, “Alexa, reorder my last order.” The checkout is seamless as the ID contains all the shopper’s information. Shoppers can use Alexa to check previous orders, add items to their cart or wish list, and make subscription payments.

It provides a faster and more comfortable shopping experience.

5.  Activate the Amazon Customer

To attract Amazon customers, it’s not necessary to sell on Amazon.com to offer Amazon Pay. Once you integrate the app, your store is available to hundreds of millions of Amazon customers. Merchants also open their doors to over 100 million Amazon Prime customers.

We encourage this payment solution because the brand provides potential customers with confidence and reassurance.

Keep Pace with New Technology

Retail technology and customer behavior are always changing. One constant is the need for excellent customer service. Friction-free checkout is one method to provide it. Optimized streamlined checkouts and trust are the two most significant reasons customers want to use Amazon Pay. Our clients benefit from Amazon’s brand recognition and trust, resulting in higher conversions and a lower cart abandonment rate.

If you need help integrating Amazon Pay with your store, reach out to an Amazon agency with specific training and expertise provided by our teams at Amazon and Amazon Pay. They will help you with the API, MWS Security Keys, and a test buyer account. Working with a talented team is the only way to keep up with all the changes and to open your doors to millions of Amazon customers.

Image Credit: amazon