As a consultant helping hundreds of small and medium-sized businesses (SMBs) streamline operations and boost sales over the past 10 years, I‘m always exploring new solutions that can drive efficiencies. One payment solution I frequently recommend is Amazon Pay.
High checkout abandonment continues plaguing SMBs: nearly 70% of shopping carts are abandoned prior to purchase. By integrating a familiar, seamless checkout solution like Amazon Pay, businesses can rescue many lost conversions.
Benefits of Amazon Pay for Small Businesses
Increase Customer Reach
With over 300 million active customer accounts globally, Amazon has unmatched reach. Allowing customers to pay with their trusted Amazon credentials means tapping into this vast network.
Boost Sales Conversions
On average, retailers have seen conversion rates increase by 20% after implementing Amazon Pay according to an IHL Group survey. The shorter checkout process reduces abandoned carts.
Reduce Customer Acquisition Costs
SMBs invest heavily in getting customers to their website. By enabling Amazon Pay, they gain immediate access to millions of buyers without expending more on marketing costs.
Streamline Omni-Channel Strategy
An omni-channel sales presence across web, mobile, and brick-and-mortar is key for SMB success. Amazon Pay seamlessly bridges online and offline channels using one set of customer credentials.
Familiar, Secure Checkout Experience
Cybersecurity is a top priority for SMBs. Amazon Pay leverages bank-level security and encryption to safely store customer data. The familiar interface prevents confusion that often derails purchases.
From 2015 to 2018, Amazon Pay usage grew over 400%. And per Amazon, they are expanding the network adding thousands of sites per week. SMBs that fail to offer Amazon Pay risk falling behind competitors vying for online sales.
How Amazon Pay Works for Shoppers
Integrating Amazon Pay into the checkout flow is simple: customers click the Amazon Pay button, log into their account, and pay without needing to re-enter or save new payment information.
Over 83% of regular Amazon users indicated they would likely use Amazon Pay at other websites according to Feedvisor. Familiarity breeds comfort and convenience.
Amazon Pay Security, Fees and Fine Print
Security
- Leverages bank-level credentials and advanced encryption
- Fraud protection backed by Amazon‘s over 20 years of analytics capabilities
- Covered by Amazon A-to-z Guarantee for refunds
Fees
- 2.9% + $0.30 per transaction fee
- $0.30 flat authorization fee per transaction
- No monthly service or set up costs
Disputes
- Chargeback timeline more generous than credit cards
- Both buyers and sellers covered by A-to-z Guarantee
When it comes to security, fraud protection, and convenience in processing payments, larger platforms like Amazon Pay or Stripe outperform niche providers. They continue investing billions in next-gen capabilities that SMBs can directly leverage.
Integrating Amazon Pay as a Small Business
Here is a high-level overview of the setup process:
- Open a free Amazon Pay business account
- Integrate Amazon Pay APIs into checkout flows using preferred ecommerce platform
- Test implementation prior to launch
- Market Amazon Pay option across channels
- Monitor analytics dashboard for performance insights
As part of registering for an account, Amazon confirms business legitimacy prior to approving integration.
For most SMB online stores, developers can enable Amazon Pay within 1-2 weeks at minimal cost leveraging available plug-ins and documentation. Ongoing optimization helps maximize its capabilities and alignment with cross-channel sales initiatives for sustaining revenue growth over the long-term.
Key Takeaways
Implementing a trusted, familiar payment solution like Amazon Pay allows SMBs to increase customer reach, boost conversions, streamline omni-channel initiatives, and tap into next-gen security and fraud prevention capabilities.
While upfront development costs apply, the benefits clearly outweigh investments for retailers focused on strategically growing their business for the future through online, mobile and offline channels.
