22 Dic How to benefit from Amazon Pay and implement it in your business
- This payment processing service developed by Jeff Bezos’ company completely changes the checkout experience for users.
- Based on the payment information associated with each Amazon account, it allows you to pay quickly and easily outside the marketplace.
We have previously talked about Amazon’s service for processing online payments. Introduced in 2007, it uses the customer base that has an account in the Amazon marketplace to enable payments to be made on external websites.
In this way, users can make purchases on any external site with the convenience of not having to manually enter their credit card details and above all, with the assurance that their bank details will not be used for fraudulent purposes.
This is undoubtedly a great advantage for consumers, but also for sellers, as it’s a payment method that inspires confidence as it’s backed by such a company as reputable as Amazon. So, if you want to know more about how to implement this service in your online business, today at Nozama Solutions we’ll tell you all about it.
What can be done with Amazon Pay and what are the advantages?
Firstly, this service allows shoppers to pay in three different ways, which makes it much easier for them:
- Through a website.
- On a mobile device.
- With Alexa via voice commands.
This is undoubtedly a major step forward for potential customers as it offers them a simple and quick way to pay, with the guarantee of a secure process in terms of privacy and data processing, and the ease of using a single account to pay on a multitude of websites. Also, there is the possibility that if the products for sale meet certain requirements, they can be covered by Amazon’s «A to Z» guarantee.
Also, not all the benefits are for consumers. For you as a retailer, it helps you to increase conversion rates, minimise abandonment rates and ultimately increase sales. All thanks to the fact that it’s a payment method that many millions of people already have an account with and that is trusted by Amazon itself.
How can you implement it on your website?
The process is very simple and is done entirely on your website, so customers will not be redirected to external windows during checkout. If you want to implement it, follow the steps below:
- Register with Amazon Payments, which is not the same as registering as a seller or opening an account to buy products in the marketplace. You can go through the process via the following link. There you must provide both your personal and company details and then you have to wait a while for your registration request to be approved.
- Implement the payment method on your website. This is done via API and won’t take much time for your web team or technical specialist.
- Test the system and start publishing content that is purchasable via this payment method.
How much does it cost to use Amazon Pay?
Naturally, the service carries a cost for each transaction. This cost is calculated on the basis of two fees, one for processing, depending on the average volume of payments made on your website; and another for authorisation, which is €0.35 and is always the same (except in special cases that we’ll explain now).
The processing fee varies as follows:
- If you invoice up to €10,000 per month on your website, it is 2.7%.
- If you sell between €10,000.01 and €50,000, the rate drops to 2.4%.
- Finally, if your turnover is above €50,000, with Amazon you can negotiate both this processing fee and the authorisation fee to reach a mutually beneficial agreement.
Also, if you receive a payment from a country outside the European Economic Area and Switzerland, you will be charged an extra fee depending on the country:
- Canada, Channel Islands, Isle of Man, Montenegro, United States: 2%.
- Albania, Bosnia and Herzegovina, Russian Federation, Macedonia, Moldova, Serbia, Turkey, Ukraine: 3%.
- Rest of the world: 3.3%.